MONTHLY Iran Petroleum Issue No. 67 January 2018 Iran’s minister of petroleum: Iran to Raise Output If OPEC Ceiling Scrapped Offshore Platform Installed South Pars Output Up 14 mcm/d Top story Iran Petroleum Interaction for Energy Security and Stability Kasra Nouri Director General of Public Relations ran’s landmark 2015 nuclear deal and interaction, the Iran’s Petroleum with six world powers, dubbed the Ministry has shown that compliance with IJoint Comprehensive Plan of Action agreements, and cooperation based on monthly (JCPOA), was one of the most significant mutual interests would be the only solution international agreements in recent to maintaining stability and balance. years, which positively impacted Iran’s International desire for partnership in politics and economy. The most important Iran’s major oil, gas and petrochemical achievement of this agreement was the projects is indicative of Iran’s successful proof of the fact that negotiations and oil diplomacy; a path whose continuation dialogue were the best solution for settling would be important alike for both any discrepancies. Besides extensive producers and consumers of energy political and economic advantages, the carriers. The only dark spot in this bright JCPOA remarkably affected the petroleum future is US imbalanced policies and the industry and oil market. Market stability American government’s non-compliance and balance were just the most visible with international agreements. The US results of the implementation of the politicians have shown that, in recent agreement in January 2016. years, they have not been paying attention Iran’s return to oil market, expansion to economic realities of energy markets of cooperation in the development of and sought in vain to impose their illogical If you have any comments Iranian oil fields, the contribution of major views on the world. The most important proprietors of capital and technology common obligation of both energy regarding the articles in this magazine, in the implementation of policies of producers and consumers is to prevent development of oil, gas and petrochemical uncertainty and undesirable volatility in please feel free to contact us through e-mail. sectors in a country extremely rich in the energy markets. oil and gas and a country of high energy The brightness of future peace and weight opened a new window to stability security in all political and economic Your views are appreciated. and security of energy future. Over the sectors, particularly energy market Petroleum Ministry - Public Relations past one year, despite fabrication of stability, is highly tied to interaction, pretexts by US politicians to hinder the cooperation and empathy. It is a collective JCPOA implementation and stonewalling duty upon everyone to contribute to efforts for international cooperation safeguarding this important achievement. Thank you for reading Iran Petroleum E-mail:[email protected] Reshadat Oil Platform . Photo:AMIRHOSSEIN HASHEMI JAVID January 2018 1 Ministry of Petroleum 18 Islamic 27 Republic of Iran Europeans Eager to Invest Managing Editor: in Iran Gas Storage Kasra Nouri Director General of Public Relations Editor in chief: Parastoo Younchi Executive Editor: Hamid-Reza Shakeri-Rad Graphic Designer: Saman Goodarzi Photo Section, PR Office, MOP: 55 Hassan Hosseini Reporter: Negar Sadeqi Javad Asghari Translator: Kianoush Amiri Coordinator: Abbas Lotfi Tel/Fax: (+98 21) 61626113 www.iranpetroleum.ir [email protected] A Review of Tough JCPOA Zabol, Global Oil Iran Oil Blowout Capping and Asian Revenue Turns 2; COVER Land of Epic Rag Sefid Fire Combat Product Grew in 2017 Advantages Market, Containment; for Iran Oil January a Record 50 30 Photo: Hassan Hosseini 58 12 6 We are regularly increasing our oil foreign companies outnumber 20, some production from the West Karoun fields of which are prioritized. I hope that the and we are currently exercising results would be announced as soon as the self-restraint due to OPEC’s decisions negotiations have concluded Iran Petroleum Top Story Top Story Iran Petroleum are negotiating with Indians in this regard,” he investment would be needed to Russia. “We have a normal said. Zangeneh said that in oil and gas contracts, for continuing to boost pressure agreement with Russia, whereby payment of fees must be legally done partly via in the South Pars phases. “This we export oil to this country. I production from the field. “It would not be such that technology would cost more than don’t know how many cargoes the opposite party to contract says ‘I am producing $1 billion for each phase. The they have taken so far, but they the gas but you must decide about it’.” “Production first thing that we need to do is are supposed to import 3 million from a field must be monetized (currency) so that acquiring such technology for barrels per month,” he said. we can pay for the contract fees,” he added. “Our building, designing and making “This process has already begun issue with the Indians is that we say India should calculations of reservoirs in and we are paid in euros for the either consume this gas in Iran or export it,” said coming years,” he said. Zangeneh Highexported Oil cargoes.”Prices Threaten TalksZangeneh. with Firms said he was convinced that Total OPEC was serious in developing SP11. “I hope that Total would fulfil its The minister said negotiations were under way obligations with regard to the Zangeneh said: “As I have with foreign and Iranian firms for the signature Phase 11 agreement. I think that already said OPEC does not of agreements to develop oil and gas fields. in a short period of time it will favor oil prices above $60. The “These companies outnumber 20, some of which assign subcontractors with many more prices go up the more are prioritized. I hope that the results would tasks of the contract.” he added. unconventional oil like shale be announced as soon as the negotiations have oil will increase in the US.” Mohammad Ghadamali Mohammad concluded.” Asked about new oil contracts and the “And when shale oil production impact of US President Donald Trump’s threats on increases, global oil prices will Photo: Photo: new oil agreements, Zangeneh said: “Our colleagues fall anew. Therefore, OPEC in the petroleum industry are seriously working will once more lose its market on oil contracts. I have minimized the number of share,” he added. “In order to negotiators in order to guarantee the clearness Negotiations are under way guarantee sustainable and long of the job and I have said that the minutes of all with this company for the term revenues with minimum Iran to Raise Output negotiations have to be drafted.” “The negotiators development of Yadavaran fluctuations, everyone agreed are very serious and qualified teams are following field. We have accepted to on the oil price at $60; however, up on this issue. We have pushed the talks and there negotiate the second phase the oil price has for whatsoever If OPEC Ceiling Scrapped SP11is no disappointment Going Ahead and despair,” he said. of this field with them under reason exceeded $60 a barrel Iran’s minister of petroleum, Bijan Zangeneh, has said the country is able to lift its oil a new framework and shale oil production will production if it faces no OPEC output ceiling. “If the OPEC ceiling is scrapped we will be able naturally go up. That would be to add at least 100,000 b/d to our oil production,” Zangeneh told a press conference on 4 Zangeneh touched on the last year signature of a $5 Talks with Sinopec for a new threat to OPEC because February 2017 in Tehran. billion agreement with a French energy major Total- Yadavaran Development prices will experience heavy led consortium, which also comprises China’s CNPCI fluctuations and sharp decline and Iran’s Petropars, for the development of Phase anew,” said the minister. He 11 of South Pars gas field, saying the “contract is In response to a question ruled out the possibility of OPEC angeneh said that Iran’s possible increase scrapped in June, we will be able when we take into account the being implemented on schedule.” Asked about with China’s Sinopec about deciding to increase its supply in oil production would not cause any to raise our production by at least issue of sweetening within the the Ministry of Petroleum’s plan to fix pressure the development of Yadavaran on market. “I think that in 2018, conflict with OPEC-led deal for production 100,000 b/d in five to six days,” framework of the new model of falloff in South Pars in 2023 and financing for the oil field, Zangeneh said: it will mainly go ahead with its cuts. “The OPEC deal is for six months to one Farzadsaid the minister.Output Costs oil contract,” he added. Zangeneh purchase of necessary equipment, the minister said: “Negotiations are under way current production ceiling. But year and is considered short-term. Issues related said: “The gas of Farzad field is “Every field experiences pressure falloff at a certain with this company for the when prices go up output quotas to increased capacity and production pertain to very sour and does not contain period of time and one of issues in the agreement development of Yadavaran are practically not respected, i.e. long-term policymaking in the country,” Zangeneh Zangeneh said onshore oil too much condensate. Therefore, with Total was for us to acquire such a capability field. We have accepted to the member states will gradually said. Zangeneh said the 14-member Organization production cost much lower recoupment for its development by applying the technology possessed by an negotiate the second phase of produce more than their quota.” of the Petroleum Exporting Countries would have than offshore oil extraction in has to be from gas production.” advanced company,” said Zangeneh.