$33.7 Crude Price for ’07 TOP STORIES Budget Ghanimifard named ran’s President projected 33.7 dollars head of negotiating Ias the price of one barrel of crude oil in the 2007 budget bill. group for IPI Project Ahmadinejad, who submitted the 229 trillion Rial annual budget bill for the next Iranian calendar year to the Islamic ojatollah Ghanimifard was Consultative Majlis, said, “We have set 33.7 dollar price Hselected as the head of the for a barrel of oil in a bid to prevent repercussions caused Iranian negotiating group for the by the drop in its rate. ‘Peace Pipeline’. Minister of Kazem The Weekly Publication of the Iranian Petroleum Industry No. 333, New Edition January 28, 2007 Vaziri-Hamaneh nominated Ghanimifard as negotiator on the Peace Pipeline. Count Down Ghanimifard currently is direc- tor at the National Iranian Oil SP phases 9&10 project 73% Company for international affairs. complete Mohammad-Hadi Nejad-Hos- he project to develop phases seinian was formerly heading the T9&10 at the South Pars Exports S2.5b Iranian negotiator group, who gas field, southern Iran, is 73 bid farewell to his post this past percent complete, the project ran Petrochemical Commer- The IPCC shares in the Central of clients’ satisfaction was 57 installment inside the country. December. manager at Iranian Offshore Icial Company said that 5.51 Asian, North American, and percent higher when compared IPCC was established in 1989 as Nejad-Hosseinian noted that Engineering and Construction million tons of petrochemical African states were the lowest, to the figure registered at the time the commercial arm of National his withdrawal from the nego- announced last week. Nozar products worth 2.467 billion standing at two and 0.8 percent in of previous sales procedures. Petrochemical Company (NPC) tiating group will not make any Arian said that the project is currently 74 percent dollars have been exported terms of weight and worth. “Remote sales system has been with the aim of having a strong change in Iran’s general policies and 67 percent complete in terms of the building of within the first 10 months of the designed and developed according presence in local and international on the project, a news agency the decks and pipe-laying operations, respectively. current Iranian calendar year. ONLINE SALES to the customers’ needs,” added markets and supplying the require- reported him as saying. He noted that the ceiling of the last storey of a According to the IPCC, 1,372 tons The IPCC managing direc- the managing director. ments of the NPC’s production deck called “SPD11” will be installed next week. “The policies are determined However, he continued, the remaining parts and of liquefied gas and nine tons of tor announced that more than Petrochemical products with complexes. by high ranking officials of the equipments will be installed in April. Started in polyethylene waste were exported 97 percent of petrochemical high valued added could be With the development of Iran’s country, and oil ministry’s rep- March 2003, phases 9&10 of the South Pars Gas to different states. products had been sold on exported abroad in case domes- petrochemical industry and the sub- resentatives just implement Field development project is aimed at producing 2 The company products were the Internet since the Iranian tic downstream industries were stantial increase in the NPC’s pro- them,” Nejad-Hosseinian million cubic feet of per day. The project exported mainly to China calendar month of Mehr. developed, said Mohammadi, duction capacity, IPCC restructured reasoned. is expected to finish next Iranian year. and India with 13.7 and 14.1 Mohammad-Ebrahim Moham- adding the measure would itself to market NPC’s products. Under IPI Project, India will percent as well as 14.4 and madi told our reporter that the also create job opportunities. To this end, it has expanded and receive natural gas from Iran’s 9.8 percent shares in terms of IPCC website’s assessment He said the IPCC products strengthened its marketing network Glory giant gas field South Pars via a weight and value respectively. system indicated that the level were sold in cash and by inside outside Iran. 1700-mile pipeline of which 475 Iran Gas Quality Meets miles will pass through Baluch- istan in southern Pakistan. Highest Int’l Standards Implementation of the project as flowing in pipelines has so far met delays, in part due Gthroughout Iran enjoys to lack of a trilateral consensus highest international standards on price. With Iran believing and is among the best of the price is low, India and Pakistan world in terms of quality. have considered it high. Head of Iran Gas Engineer- Majlis Pressing After negotiations on pricing ing Association’s board of gave no way, three states directors told our reporter that the natural gas pumped appointed a UK-based consul- to national grid, due to close supervision, enjoyed very high quality and is placed in the best category. tant to assess the issue during one Mansour Daftarian added that the National Iranian of tri-party meetings in August. Gas Co. (NIGC) was known for employing the for Oil Bourse The consultant has offered its latest technologies. report recently, which is report- “All gas refineries of the country have been edly being assessed by India and equipped with intelligent sensitive electronic Pakistan. systems that stop the refinery’s operation after they identify any pollutant in processed natural Drilling results at Farsi gas or any increase in its compounds,” he said. The official explained that natural gas con- Oil Block promising tained certain volumes of ethane, butane, rilling at offshore Farsi Block, and propane gases, rejecting the idea that Dsouthern Iran, is promising these gases are harmful and cause cancer. good results, Hossein Roshandel, According to the official, the three gases are not only the director for exploration at the not pollutants but boost the thermal value of natural gas. National Iranian Oil Company Iran sits atop the world’s second largest gas announced last week. reserves and has signed deal after deal to supply rapidly growing international demand. “Three wells have been so far drilled at the block, indicating the existence of oil in the area,” It is possible he told our reporter. He added that the oil found in Taming dragon Bid-Boland 2 this block is of heavy type. Refinery project begins Roshandel continued, “Drilling of the fourth well is underway, he construction of the Bid- and outcomes of the opera- TBoland 2 Refinery kicked off through an amending contract tions will be determined next signed here on Thursday with month.” two Iranian consortiums. According to a report, National Iranian Gas Engineering and Iranian Oil Company awarded Development Company inked explorations at Farsi Block to an rchive A

the contract worth $2.2 billion with two domestic : Indian consortium in 2002. Led consortiums on the EPC (Engineering, Procurement, by state-owned Oil and Natural hoto

and Construction) scheme. P Lawmakers insist that oil bourse must be established as soon as possible Gas Corporation , the consor- Under the contract, Sazeh Consulting and Jahan tium including Indian Oil and Pars Co. consortium will build the part ‘A’ of the he Majlis Energy Commis- The MP, however, said that menting the project,“ he said. Another news agency said Oil India announced outcomes of project. sion is planning to press for the oil mafia which operates It was announced in September the articles of association of Termed as part ‘B’ of the project, the pipelines and T exploration activities as positive. storage facilities in Mahshar, Khuzestan Province speeding up the implementation outside the Petroleum Ministry that Iranian rials will be used as the projected oil bourse is the Drilling of the first three wells has will be built by another consortium, Jonub in of the groundbreaking project to and the traditional approaches the main currency at the much- outcome of extensive studies finished, and there would be an collaboration with the British company, Castian. establish an oil bourse in Iran. of some managers are the publicized oil bourse that the using experiences of other untapped field in the block, upon The refinery will have a refining capacity of around 57 Kamal Daneshyar, who heads the main stumbling blocks to the world’s fourth largest oil pro- countries and are based on the being commerciality viable, the million cubic meters of natural gas per day. The inputs commission, said that the com- realization of this objective. ducing country and the second parliamentary Law on Bourses. consortium announced. are received from the NGL 900, 1000, 1200, and 1300 missioners will write to President Meanwhile, another member biggest exporter within the Orga- Experts say the success of an plants. Parts of the gas will be injected to the entire grid, Mahmoud Ahmadinejad next of the commission, Hassan nization of Petroleum Export- would depend while the rest is to be injected into oilfields or sent to week to this effect. Moradi, told our reporter that ing Countries is to establish on much on cooperation from other ENERGY ATAT A GLANCEGLANCE petrochemical units for ethane production. “The commissioners will write the Petroleum Ministry and the the island of Kish. OPEC members and a much- Bid-Boland 2 Refinery will be set up 15 kilometer to the president and demand the Ministry of Economic Affairs The euro and the US dollar will needed consensus with Arab Delair Navarra to Recover southwest of Behbahan, in the southern province of Skikda LNG Plants in Algeria Khuzestan, near Bid-Boland 1 Refinery. rapid implementation of the and Finance have not taken the also be used concurrently at the states of the Persian Gulf region. project,“ he told Fars, adding issue seriously. bourse. Lawmakers insist that oil Bahrain’s Minister of Petro- that the Minister of Petroleum “In a meeting with the two min- In June, articles of associa- bourse must be established as leum Remains NOGA Chair- Record and the minister of economic istries’ senior officials on Sunday, tion of Iran’s first oil bourse soon as possible, stressing that man affairs and finance as well as the all members of the Majlis Energy were ratified at a meeting of the the implementation of the pro- Petrofac Awarded Contract Bandar Abbas Refinery president are in favor of estab- Commission expressed their Board of Directors of Interna- tracted project has now become for Karachaganak lishing an oil bourse. concern about the delay in imple- tional Oil Bourse Company. a necessity. Georgia Receives Shah Deniz capacity to hit 320,000 bpd Gas andar Abbas Refinery’s Cyprus and Lebanon Sign capacity is to be increased B WEEK REVIEW Oil/Gas Economic Zone Agree- to 320,000 barrels per day in ment the near future, director for NIOC Conference to Detail operations at the refinery 17 E&D Blocks announced. OPEC Cuts Global Demand Forecast “The refinery’s capacity cur- Iran Oil Refining Forum rently stands at 232,000 bpd. It will rise to 320,000 fter a year of oil prices so high that analysts warned they might Saudi Arabian Minister of Petroleum Ali al-Naimi this week rejected Rescheduled For 17-18 Feb- bpd in spring,” Alireza Amin told reporters in Bandar Ahit $100 a barrel soon, prices are falling, financial speculators calls from other OPEC members for an emergency meeting to discuss ruary Abbas, the capital city of . are running for the exits and analysts are pondering whether oil possible additional supply cuts, saying that two earlier measures to Iran Signs Power Plant MOU The refinery is fed by the crude oil sent from Kharg could fall below $30 a barrel by spring. reduce supply and head off supply gluts are “working very well.” with SKS Island. The crude is conveyed to the refinery by the OPEC, supplier of 40% of the world’s oil, reduced its forecast Oil prices have tumbled 17% so far this year, and traded below SOMO Awards European use of two ships, he elaborated. for 2007 world demand, and made a larger cut to the amount of oil $50 a barrel briefly on Thursday in New York. OPEC revised down Refiners Kirkuk Crude He also said that refining crude oil produced from it expects countries outside its membership to produce this year. its estimate of 2007 world demand by 210,000 bpd to 85.39mn Kuwait on Track to Start Sorush and Noruz oilfields is among the most impor- Northern Gas Development tant projects underway in the refinery. Sorush and Those changes led to a higher forecast for the demand for crude bpd, meaning it now expects consumption to grow 1.5%, rather Noruz crude is of heavy type. oil from Organization of Petroleum Exporting Countries members than 1.6%. by End-Year Amin further noted that two contracts have been themselves, particularly in the second and third quarters of this year, The Paris-based International Energy Agency, which advises oil Verenex Spuds Second Explo- signed in recent months to increase gasoline pro- the group’s Vienna-based secretariat said in its Monthly Oil Market consuming countries, made similar changes to supply and demand, ration Well In Contract Area duction at the Bandar Abbas Refinery. Report. cutting its demand growth estimate to 1.6%, from 1.7% last week. 47 in Libya