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Gas Exporters forum to be SP Phases 9, 10 held in April Platforms to Become atar will host a meeting in April of gas exporters. The meeting Operational Next June Qcomes after made overtures to Russia last week about establishingestablishing a ggasas ggroupingrouping llikeike OOPEC.PEC. roject manager of South “In the next meeting of the gas exporting countries, they will PPars gas field’s phases 9 decide about a gas OPEC,” Vaziri Hamaneh noted. and 10 announced that the plat- forms of the two phases would come on stream next June. The Weekly Publication of the Iranian Industry No. 335, New Edition February 12, 2007 Morteza Emami our reporter that the two projects had so far made an about 64 percent Count Down physical progress in the A Blue Print: Gas Cooperation Organization onshore and offshore parts. “The figure related to the NIOC to make FID on Pars manufacture of platforms is LNG Project by mid Feb. Strategic Proposal 76 percent,” said the manager. he National Iranian Oil ointing to the fact that complementary partners in the tial for their expansion, Supreme him a written message, which was All equipment required for the TCompany plans to make a PIran and Russia control political, economic, regional and Leader of the Islamic Revolution delivered by Ivanov. offshore part had been already final investment decision on its about half of the world’s gas international arenas,” Ayatollah Ayatollah Ali Khamenei said here “Active cooperation between provided, said Emami, adding Pars LNG Project by mid Feb- reserves, the Leader proposed Khamenei told Russian Security last week. the Islamic Republic of Iran and 90 percent of the equipment ruary, the managing director of including metal structures was the Pars Oil and Gas Company that “the two countries can Council chief Igor Ivanov. The Leader said that both Iran Russia on regional issues within jointly establish an organiza- The Islamic Republic of Iran and Russia would benefit from a defined framework can prevent supplied by domestic plants. announced last week. According to the official, 85 “NIOC will hold talks with its partners France’s Total tion like OPEC for dealing welcomes the development of enhanced ties. the U.S. from becoming the sole with gas cooperation.” ties with Russia in all areas and He also thanked Russian Presi- power in the region,” Ayatollah percent of equipment needed and Malaysia’s Petronas over the FID of the Pars LNG by the onshore section has been Project after they reach a consensus on prices of the down- “The two countries can be two believes that there is great poten- dent Vladimir Putin for sending Khamenei said. stream and upstream parts of the project,” Akbar Torkan purchased and stored at the Assa- told reporters. louyeh site. Under the Pars LNG Project, Iran will produce liquefied natural gas (LNG) from phase 11 at its giant South Pars Hengam Gas Field gas field. The project is to be implemented by the NIOC development to and the consortium of Total and Petronas. Iran is also seeking another project dubbed ‘Iran LNG’ Iran Signs LNG Deal with start pending NIOC to produce the liquefied natural gas from the SP phase approval 12, Torkan stated. he development of the TPersian Gulf Hengam Glory Repsol and Shell Gas Field will begin once the National Iranian Oil Company NDC starts drilling 9th well at approves the results of the studies on reserves, said the managing Turkmen field director of the Petroiran Devel- ran’s North Drilling opment Company. ICompany has recently started “PEDCO is currently conduct- the drilling of the ninth well ing studies on Hengam’s reserves at a Turkmen hydrocarbon and preparing the Master Devel- field, NDC Managing Director opment Plan (MDP). The MDP Asghar Rafiie announced. and the results of the studies will The NDC is using Iran-Khazar Rig for the drilling at the Turkmen field, he told reporters then be presented to NIOC for without going into details. final approval,” Mostafa Khoyi The Iranian company is carrying out drilling operations elaborated. After being con- at the Turkmenistan’s hydrocarbon fields, according to firmed by NIOC, the develop- an agreement signed with the Caspian Sea littoral state in ment of the field will be started, 2004. The company is tasked to drill a total of ten wells by the official noted, adding that May 2007. NDC is a subsidiary of the National Iranian the project is now 97 percent Oil Company which is engaged in offshore and onshore complete in terms of studies and drilling activities through the use of semi-submersible, preparation of the MDP. jack-up, and heavy land drilling rigs. The offshore Hengam Gas Field, which is shared with It is Possible Oman, is located 20 kilometers off Qeshm Island. Iran and Oman World’s Largest Methanol have been discussing the joint development of the field since Plant to Come on Stream The project with Repsol and Shell would involve developing phases 13 and 14 of the South Pars gas field in the Persian Gulf last summer. he first unit of Zagros Pet- Trochemical Complex in ran had signed an initial deal the feasibility of the project,” be signed in days and put the can be transported on tankers. Iran to start gas southern Iran, the world’s largest Iwith Spain’s Repsol and the source said. value at $4.3 billion for an “This contract is the biggest methanol plant, is undergoing Royal Dutch Shell to produce “The important thing is that LNG plant and port terminal. project of its kind for invest- exports to Austria, the final stage and will become liquefied natural gas from the the final decision to develop Nozari said the $10 billion ment and the amount of gas to Switzerland in 2012 operational in the near future. According to the National South Pars gas field. the LNG project is a year or price tag was for both upstream be turned into LNG,” Nozari inister of Petroleum Petrochemical Company, the project has made Gholam Hossein Nozari, so away.” work and the LNG facilities. was quoted as saying, adding MKazem Vaziri-Hamaneh 99.5 percent physical progress and the engi- head of state-owned National A deal would be a blow to The source said the LNG plant that the deal, signed last week, announced last week that Iran neering and logistical operations have finished. Iranian Oil Company, was Washington, which in addi- would cost about $2.5 billion would be based on Iran’s so- will start gas exports to Switzer- The project’s civil and pipe-laying operations had quoted by a news agency tion to barring US investment and the port terminal and other called “buyback” terms. land and Austria in 2012. already been carried out, said the company, adding as saying the deal would be in Iran, has been stepping up infrastructure would cost about Under Iran’s “buy back” Iran has signed memorandums the construction operations started in 2001 and the worth $10 billion and said pressure on non-US firms to $1.8 billion, the source said, contracts, investment in of understanding with Switzerland plant was expected to produce 1.65 million tons of a final investment decision refrain from investing in Iran. adding that exports - if the and Austria, and, “Gas transfers to methanol per year after being fed by 1.488 million developing a field is rewarded was expected by the end of The project with Repsol and project went ahead - could with a share of production these European states will begin in cubic meters of natural gas annually and two million 2012,” some news agencies quoted cubic meters of oxygen per day. 2007. Shell would involve developing start in 2011 or 2012. for a short period before the “The project has certain features as an auto-thermal An industry source close phases 13 and 14 of the South Under the deal, Shell and Repsol state repurchases the field. Hamaneh as saying. reformer reactor has been applied to break up natural to the deal told report- Pars gas field in the Persian would each take a 25 per cent Iran has said it is reviewing the In late December, a news agency gas by pure oxygen and a cooled reactor gas is used ers the deal signed was an Gulf. stake in the project to produce terms of deals to make them reported the managing director of in the methanol production process,” the NPC said. upstream service agreement. A source said last Tuesday 16 million tons a year of LNG, more attractive, after criticism the National Iranian Gas Export Zagros Petrochemical Complex Managing Director “It is part of the work to assess such a preliminary deal would super-cooled natural gas that from foreign investors. Company as saying that Iran and Mehdi Hamidi told our reporter the second methanol Switzerland have signed a heads unit would be inaugurated in late March 2007 – earlier of agreement on gas transfer to the than the due time. Hot Topic European state Several petrochemical projects in southern Iran are expected to come on stream in the next eight months. The ethylene unit at Zagros, being commissioned at the ENERGY ATAT A GLANCEGLANCE moment, is to reach annual capacity of 1.6 million tons Malaysia to build refinery in Andimeshk by the yearend while the largest aromatic and olefin Malaysian company plans to begin construc- Under the agreement, which is valued at over Algeria's Oil and Gas Exports units at Borzouyeh and Jam respectively will start Reach $52Bn In 2006 producing in first half of the next Iranian calendar year. A tion of a refinery in Andimeshk, Khuzestan $2.7 billion, a refinery with a capacity of 150,000 Province in the near future. barrels per day of crude oil will be built in Eni CEO Says Kashagan Urea and ammonia at Ghadir and the 9th Olefin are Timeframe and Cost Structure also among the next year's projects. Malaysia’s L1 will start the construction of the refin- Andimeshk. ery in the southwestern province according to an Liquid gas, gasoline, jet fuel, and diesel fuel Nearly Ready agreement signed with the Iranian private company will be the products of the refinery. Mean- Ukraine Seeks EU Coopera- Record Rahyab Behineh on the EPC (engineering, procure- while, plans are being made to export its surplus tion for Odessa Pipeline ment, and construction) basis. products. BP Egypt Announces Gas $5.5 Billion Find in North Alexandria Block (14) he amount of investment WEEK REVIEW Iraqi NOC to Control Iraq's Tattracted for the devel- Largest Producing Oil Fields, opment of different phases at the South Pars (SP) gas field, Says Shahristani southern Iran, is expected to be Oil Prices Climb Above $59 Prince Hamza to Head doubled next Iranian calendar Jordan's Royal Energy Com- year, the managing director of il prices rose again after falling earlier Heating oil prices rose more than a cent to crude in Africa's oil giant is pumped. mission the Pars Oil and Gas Company announced. Oin the day on last week's surge fueled by $1.6968 a gallon while natural gas futures Also in Nigeria, officials said hostage takers Kuwait Establishes KGL “The volume of investment for the development of expectations of cold weather in major markets. gained 51 cents to $7.991 per 1,000 cubic feet. released nine Chinese oil-worker captives. Petroleum to Work Across South Pars has increased from $500 million in 1999 to Light, sweet crude for March delivery rose Oil prices had also been supported by con- Expectations that the Organization of Oil/Gas Spectrum $2600 million in 2006. The figure is expected to become 27 cents to $59.29 a barrel on the New York cerns the two main Nigerian oil workers' Petroleum Exporting Countries will tighten ExxonMobil Targets FEED twofold next Iranian year,” Akbar Torkan added during Mercantile Exchange. unions would hold a strike this week in their spigots further are also likely to shore Award For Qatar GTL Project the inauguration ceremony of Jam-Taheri-Assaluyeh Brent crude for March delivery on the protest of rising violence in Africa's up crude oil prices. By Mid-2007 Highway, southern Iran. ICE Futures exchange was still down 11 biggest petroleum producer. The planned The Wall Street Journal reported last week Torkan further noted that investment worth $5.5 billion Saudi Aramco, WellDynam- has been made for the development of SP phases 1-5. In cents to $58.30 a barrel. strike was called off pending a meeting that Saudi Arabia has advised its custom- ics to Develop Intelligent Well addition, phases 6-8 are being developed at the investment The Nymex contract rose $1.72 to settle with President Olusegun Obasanjo. ers of its impending 158,000 barrel a day Completion Technologies worth $3 billion, he added. The development of phases at $59.02 a barrel on colder-than-normal The 20,000-strong blue- and white-collar output cut effective Feb. 1. The reduction is Dana Gas Posts $221Mn 15-18 are at engineering stages, and phases 11-14 are to U.S. weather and supply worries driven by a unions had threatened the work stoppage part of a December agreement by OPEC to Income in 2006 be developed to produce liquefied natural gas (LNG), second round of OPEC production cuts. after an increase in the number of kidnap- cut output by 500,000 barrels a day on top TransGlobe Announces he elaborated. Moreover, phases 19-24 are at bidding Oil prices had earlier fallen as low as $49.90 a pings and oil-industry attacks across the of an earlier production cut of 1.2 million Encouraging Results in stages, Torkan stated. barrel after an unseasonably warm January. southern Niger Delta area, where most of barrels a day. Yemen's Block S-1