MONTHLY Iran Petroleum Issue No. 69 March 2018 2nd IPC Deal First Iran-Russia Upstream Contract Signed $80bn Investment in Iran Petchem Sector news MONTHLY Iran US Firms Knocking at Petroleum Iran Doors Kasra Nouri Director General of Public Relations he last Persian calendar year was special in terms of investment in Iran’s All these events indicate that Iran’s petroleum Tpetroleum industry. In spite of the industrystrategic advantagesoil and gas projectsare not hiddenin Iran. to any attempts made by the United States and its If you have any comments The international energy market and Iran’s investment into Iran’s oil, gas, petrochemical oilmajor and oil gas company. could not be easily swayed by the regional allies to block the flow of capital and Trump administration’s threats and political regarding the articles in this magazine, please have been signed between Iran and leading ploys. The world needs more and more energy internationaland refining industries, companies. major agreements as industries grow and Iran, which sits atop the feel free to contact us through e-mail. Some of these agreements which are proof world’s largest hydrocarbon reserves, remains of Iran’s success in attracting international Your views are appreciated investment were the deal with a French In crisis-stricken Middle East region, which energy giant Total-led consortium comprising remainsa major player the hub in of this energy market. production, Iran China’s CNPCI and Iran’s Petropars for the remains a safe island capable of guaranteeing development of Phase 11 of South Pars gas the future of energy market. This issue has not been ignored by oil and gas consumers and Zarubezhneft with Iran’s Dana Energy for proprietors of capital and technology in the thefield, development agreement with of Aban a consortium and West Paydarof Russia’s world. recently said the country would need Energyoil fields, Development agreement for Company, the development South Korean billionsIran’s petroleum of dollars minister,in investment Bijan inZangeneh, addition of Sepehr and Jofair oil fields with Pasargad to technology. He noted that international Iran and develop South Pars, agreement with a companies, including American firms, would Spanish-Iraniancompanies’ agreement consortium to build for refineries manufacturing in be welcome. The Trump administration’s policies and resumption of gas swap with Turkmenistan and unilateral sanctions have harmed US oil corrosion-resistant alloy (CRA) pipes, companies rather than Iran, and have given two oil blocks in the Caspian Sea. rise to conditions blocking their involvement in Iran-AzerbaijanIn parallel with agreementforegoing agreements, to jointly develop other Iran’s petroleum sector. It is the energy market, but not politics, y in Iran’s petroleum industry. One of them is that will decide for the country’s needs and PetroleumMinistr -PublicRelations major companies have expressed interest economic factors. Every politician thinking a $30 billion outline agreement for several otherwise is totally Greek to foresight. Thank you for reading Russia’s giant Rosneft which had earlier signed Iran Petroleum [email protected] 1 Ministry of Petroleum Islamic 22 Republic of Iran 24 Managing Editor: $80bn Kasra Nouri Director General of Public Relations Investment in Editor in chief: Parastoo Younchi Iran Petchem Executive Editor: Hamid-Reza Shakeri-Rad Sector Graphic Designer: Saman Goodarzi Photo Section, PR Office, MOP: 44 Hassan Hosseini Reporter: Negar Sadeqi Javad Asghari Translator: Kianoush Amiri Coordinator: Abbas Lotfi Tel/Fax: (+98 21) 61626113 www.iranpetroleum.ir [email protected] PEDC Seeks Qeshm Island, US Oil Policy; Zarubezhneft Boss: $2.4bn Deal with Local Company Effectiveness a Gem in Certain We Accept for Sepehr, Jofair and Persian Gulf Objectives Iran-Russia Development COVER Efficiency Contract Risks Photo: Hassan Hosseini 14 58 36 6 8 IPC March 2018 Issue No. 69 MONTHLY IPC 22 Fields Up for Development 36,000 b/d. A memorandum deputy CEO of NIOC for befield. signed “The soon agreement with domestic for the signed with Zarubezhneft on nd developmentGholam-Reza and Manouchehri, engineering, companiesdevelopment and of completionBalal field will of of understanding (MOU) was 2 IPC Deal said: “The Aban and West company to study Aban is on the cards. Meantime, and12 July West 2016 Paydar for the under Russian IPC producing oil, but they will Forouzan field development provisions with a view to First soonPaydar face fields output are decline.already companies including Gazprom negotiations with other Russian Iran shares with neighboring of this agreement is to enhance way, which we hope will be countries.accelerating The oil agreement and gas fields with Iran-Russia Therefore, the main objective Neft and Rosneft are under Zarubezhneft is meant for the investment to be made under “Nearly 30 EPC agreements thistheir contract production.” would “The be around total arefinalized on the one NIOC after agenda another.” for oil 48,000 b/d with an accumulated Upstream $670 million, 10% of which will outputtwo fields of 67 to producemillion barrels up to over ten years. The agreement is he said. “In drawing up the recovery enhancement,” he said, Contract contract,be spent onthe non-capital issue of domestic costs,” sectorexpressing in the hope second that half Iran of would the by the parties hereto. The main newexperience calendar prosperity year. in this subject to renewal upon request contribution of Iranian under this agreement include Signed manufacturing and maximum jobs envisaged to be carried out companies have been taken into conducting engineering studies, Iran has struck a second oil deal under the framework of the even 38 million barrels in ten Technological Savvy workover of wells and their newly developed Iran Petroleum Contract (IPC). The first years, but now thanks to this side has accepted necessary Mohammad Iravani, CEO equipment with downhole agreement was signed last July between the National Iranian Oil agreement, 67 million barrels obligations.consideration Implementation and the Russian of of Dana Energy, highlighted pumps, reconstruction, repair With a Company (NIOC) and a French Total-led consortium comprising will be added to their combined this agreement heralds transfer transfer of technology and The total combined China’s CNPCI and Iran’s Petropars for the development of output to reach 105 million installations, installation investment Phase 11 of the giant offshore South Pars gas field. ofand separator, renovation installation of existing of production minister said enhanced recovery ofHe enhanced said this recoveryagreement (EOR) would “Thefinancing private as thesector most in importantIran is to be made issue in Iran-Russia cooperation. of 67 million wasbarrels,” a key said factor Zangeneh. in this contract. The bringtechnology,” prosperity said toManouchehri. domestic facing restrictions which we transforming a production under this barrels of oil he second such deal of oil contracts, and I hope it “This agreement is signed for a manufacturers of equipment for multiphase flowmeter, and contract was signed on March period of ten years, during which the petroleum industry, adding: “Ever since introducing the in Phase 1, and purchase and hope will be removed,” he said. from these T14 between the NIOC Zangeneh said Zarubezhneft’s “We hope that in the near future new model of oil contracts, the installationwell into a waste of oil, injectiongas and water well would be two fields, partnershipwould not be with the last,”a private he said. solutions for enhanced recovery it would become possible to Iranian Ministry of Petroleum transmission unit, drilling eight around $670 Zarubezhneft and Iranian Iranian company was another we hope to be able to find new manufacture hundreds and was seeking to create E&P appraisal/production wells, at current privateand a consortium company Dana of Russia’s Energy new achievement. “A fully negotiations were under way even thousands of ESP pumps companies and engage them in purchase and installation of million, 10% prices,$4 for the enhanced recovery from private E&P Iranian company is from these fields.” Zangeneh said downhole pumps, installation of which will the Aban and West Paydar oil including Gazprom Neft, Tatneft, also touched on negotiations Iravani said the main idea and operation of separator, billion will the new contracts,” he added. be spent on Lukoilwith other and RussianGazprom companies for the underin the country.”way for upstream Manouchehri oil behind IPC deals was to conducting 3D seismic studies, be added neighboring Iraq on its eastern consortiuminvolved,” he was said, the noting second that IPC the development of other oil and transfer technical knowhow and drilling relief wells in Phase non-capital to state border.fields which Zarubezhneft Iran shares will with hold an deal.agreement The minister with the said Russian-led increased we are actively following up and management to Iranian 2. The CAPEX calculated for the costs 80% share in the contract, while production from Aban and West Ministry of Petroleum would be onprojects, the negotiations saying: “Currently, for the companies. “The most important development of Aban and West revenue, the remaining 20% will belong Paydar would earn Iran $4 billion facinggas fields. tough He tasks said thein the Iranian new development of 22 oil and to Dana Energy. Iran’s Minister in revenue. “With a combined calendar year which started on is transfer of technology, $674 million (including direct issue in Iran-Russia agreement production of 67 million barrels March 21, adding: management of knowledge and capital,Paydar fieldsand downhole is estimated pumps at speaking at the signing ceremony “Most of talks are in their viewgas fields.” to signing He said agreements talks had for of thePetroleum new IPC Bijan deal, Zangeneh, said some current prices, $4 billion will thebeen Yaran, almost Mansouri, finalized Sepehr with a Indirect costs are estimated at financing,” he said. of oil from these two fields, at signature of new contracts Details on Oil Fields $68repair million.