Iran’s President Hassan Rouhani inaugurated five new phases of the South Pars Gas Field on Sunday which were completed at a cost of $20 billion, local media reported.

The inauguration of phases 17-21 paves the way for Iran to overtake neighboring Qatar in production from the offshore gas field which it shares with Iran, Iranian officials said, reported AFP.

Iran has so far developed 12 phases in the field – phases 1, 2&3, 4&5, 6-8, 9&10, 15&16.  The remaining phases are 11, 12, 13, 14 and 22-24.

“Our production has reached 575 million cubic meters per day,” said Rouhani at the ceremony.

Iran’s total gas production is 885 million cubic meters per day.

It is estimated that production from every two phases of South Pars would generate $3.5-$4 billion for Iran. Reports further said that the total investments in phases that were inaugurated today would be reimbursed within less than two years.

“At the height of sanctions, with the help of Iranian engineers and workers, we succeeded in developing 11 phases of South Pars,” noted Oil Minister Bijan Namadar Zanganeh.

South Pars is the largest known gas reserves in the world. Iran has the largest gas reserves in the world, and the fourth-largest oil reserves.

Each of the new projects produces 28 million cubic meters per day, Zanganeh told reporters late Saturday.

Qatar announced earlier this month that it was ending a 12-year ban on new projects at its section of the shared field. Qataris call their part of the deposit the North Field, which together with South Pars forms the world’s largest reserves of non-associated gas. Iran has no plans to impede Qatar over its activities at North Field, Zanganeh said. “They can carry out their development projects as we do ours,” he said.

 Iranian President Hassan Rouhani inaugurated Phase 19 development project of the South Pars gas field (SP. 19).

Iran is targeting the export of 50 million cubic meters of gas per day to neighboring Iraq once that country can arrange for a letter of credit to finance the purchase, Zanganeh said.

Since the nuclear deal went into effect in January 2016, Iran has increased oil production from 2.6 million barrels per day (mbd) to 3.9 mbd, while more than doubling its oil exports.

Iran has signed a flurry of deals with Western companies over the past year since the easing of international sanctions on Tehran after an accord was reached over its nuclear program.

Iran needs foreign investment for repairs and upgrading of its oil and gas fields. It also seeks the transfer of technology to its oil industry after a decade of sanctions.

In November 2016, France’s Total became the first oil major to sign a big deal with Tehran since the lifting of sanctions and agreed to help it develop the world’s largest gas field, South Pars.

Shell signed a provisional deal in December to develop Iranian oil and gas fields of South Azadegan, Yadavaran and Kish.

Iran has named 29 companies from more than a dozen countries as being eligible to bid for oil and gas projects using the new, less restrictive contract model.

The firms include Shell, France’s Total, Italy’s Eni, Malaysia’s Petronas and Russia’s Gazprom and Lukoil, as well as companies from China, Austria, Japan and other countries.

Russia’s Zarubezhneft signed an MoU for a feasibility study on two joint fields in the west of the country.

Norway’s International Aker Solutions Company signed an MoU to modernize Iran’s oil industry.

Last May, Austria’s OMV signed an MoU for projects in the Zagros area in western Iran and the Fars field in the south.

South Korean Daewoo Engineering and Construction (Daewoo E&C) signed an MoU to construct an oil refinery in Bandar Jask, on the southern coast of Iran.

Italy’s Saipem signed MoUs to cooperate on pipeline projects, upgrading of refineries and development of Tous gas field in the northeastern province of Khorasan Razavi.

Norwegian oil and gas company DNO said it was the second Western energy company after Total to sign a deal with Iran under which it agreed to study the development of the Changuleh oilfield in western Iran.

Lukoil, Russia’s second biggest oil producer, hopes to reach a decision on developing two new oilfields in Iran.

Germany’s Siemens AG signed an MoU in May to overhaul equipment and facilities at Iran’s oil operations and refineries.

BASF’s Wintershall oil and gas exploration subsidiary signed an MoU with the National Iranian Oil Company in April 2016.

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The first South Korean ship will be delivered to Iran in March 2018 based on a deal to buy 10 Ultra Large Container Vessels (ULCV) from the Asian state, announced the managing director of the Islamic Republic of Iran Shipping Lines (IRISL).

Mohammad Saeedi added it is a 14,500 TEU container ship built by South Korea’s Hyundai Heavy Industries Co. (HHI), Tasnim News Agency reported.

He said after receiving the first ship, the remaining ships will be handed over to the IRISL at monthly intervals.

The IRISL signed the deal with the HHI to buy 10 ships from the world’s largest shipbuilding company in December. Financed by South Korean banks, the contract was inked between representatives of the IRISL and the HHI on December 9, 2016.

Under the contract, valued at $650 million, Hyundai will build 14,500 TEU container ships and 50,000 DWT product tankers.

The contracts were parts of the IRISL’s plans to renovate its fleet at a total investment of $2.5 billion.

The company operates about 115 oceangoing vessels, but many of the ships are old and have been deemed unsafe to travel and cannot be insured.

The agreement marks Iran’s first deal with a foreign shipbuilder since the removal of anti-Tehran sanctions.

The sanctions were lifted after Tehran and the P5+1 (Russia, China, the US, Britain, France, and Germany) finalized a lasting nuclear deal on July 14, 2015 and started implementing it on January 16, 2016.

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An Airbus A330 aircraft arrived in Tehran on Saturday, the second of 200 Western-built passenger jets ordered by the national carrier Iran Air following the lifting of sanctions.

The long-haul aircraft, with Iran Air Chairman Farhad Parvaresh and other officials onboard, took off from the French city of Toulouse on Saturday and landed at Tehran’s Mehrabad International Airport five hours and 30 minutes later, IRNA reported.

The A330, which has 32 business class and 206 economy class seats, is suitable for long-distance flights and is expected to be used initially on European routes and on flights to Beijing and Kuala Lumpur.

The jetliner joins a smaller A321, which flew to Tehran on January 11.

“We are working very closely with Airbus, and we are both very keen to stay on schedule and committed to the contract that we made together,” Parvaresh told Reuters on Friday.

Iran had not directly purchased a Western-built plane in nearly 40 years, the one exception being the sale of an Airbus to replace one shot down by the USS Vincennes in 1988.

Iran ordered 100 aircraft from European plane maker Airbus in an 18-billion-dollar deal signed last year, which includes 46 aircraft from the A320 family, 38 from the A330 family, and 16 of the A350 XWB.

In the same year, Iran inked another agreement worth 16.6 billion dollars to buy 80 new planes from US aviation company, Boeing, comprising 50 737 jets and 30 777s.

Iran Air is also expected to finalize an accord to purchase 20 turboprops with European manufacturer ATR, which is jointly owned by Airbus and Italy’s Leonardo Finmeccanica.

The agreements came after the restrictions imposed on Iran’s aviation industry were lifted following a nuclear agreement known as the Joint Comprehensive Plan of Action (JCPOA).

The JCPOA was negotiated between Iran and the P5+1 countries – the United States, Britain, France, China and Russia, plus Germany. It was finalized on July 14, 2015 and started being implemented on January 16, 2016.

Photo: Iran Air’s new Airbus landed in Tehran

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Iran is making rapid forays into the European crude oil market and selling its parcels to countries such as France, Italy, Greece and Spain, UK-based global shipping consultancy, VesselsValue said.

“Following the removal of sanctions, new players have emerged in the mix,” VesselsValue said in a report. Iran’s crude oil shipments have been delivered to destinations ranging from Malaysia and Singapore in Asia to Syria in Africa, it said, according to Platts.

In 2016, the number of voyages to deliver crude from Iran to France was estimated at 21, while Italy, Greece and Spain took 15, 14 and 13 shipments respectively, it said. This includes shipments in VLCC, Suezmaxes and Aframaxes.

In July 2012, the European Union had banned the import of Iranian crude by member countries and also the provisions of EU-linked insurance, which included protection and indemnity cover for any shipments of Iranian crude, irrespective of destination. The sanctions were relaxed in January last year.

There has also been a significant change in the geographical mix of owners whose ships were used to lift Iranian cargoes of crude.

Prior to the lifting of sanctions, the National Iranian Tanker Company (NITC) was the largest provider of tonnage to load cargoes from Iran, in addition to Iran-o Hind, Idemitsu Tanker, JX Ocean and KLine.

The Iranian ships were provided local insurance cover but there were always concerns over the possibility of any potential liability in event of maritime accidents in waters of importing countries which were permitted to purchase crude from Tehran.

During the period of sanctions, India permitted Iranian ships to call at Indian ports based on Tehran’s local insurance cover, China used ships of domestic companies while the Japanese government provided insurance cover only for VLCCs.

South Korea and Taiwan also took deliveries of cargoes purchased on a cost and freight (CFR) basis.

Now, “the group of shipowners lifting crude from Iran has changed dramatically to include those from Greece and Belgium”, VesselsValue said.

“The influx of owners from Greece has significantly increased the number of Suezmaxes plying on the ex-Iran voyages to 81 last year, compared with 15 in 2015,” the report said.

While NITC continues to be the market leader in terms of the number of ships deployed for loading crude from Iran, other companies with ships loading from the country include Dynacom, Delta Tankers, Euronav, Polembros, COSCO, Avin International, Olympic Shipping and Management, New Shipping and Thenamaris, it said.

Last month, two Iranian VLCCs, the ‘Huge’ and the ‘Snow’ delivered a mix of the country’s heavy and light crude grades to Shell at Rotterdam, according to trade sources and S&P Global Platts.

In late January, Iran’s Oil Minister Bijan Namdar Zanganeh said that the country was producing 3.9 mbd crude and was set to reach its 4 mbd target by the end of the Iranian year on March 20.

This will mark the return of Iran’s output to levels last seen before 2012, when international sanctions were imposed on the country.

A Platts survey released on February 6 estimated Iranian production at 3.72 mbd in January, up 30,000 bpd from December.

While cuts in crude production have been initiated under an OPEC-led agreement, Iran is allowed to boost its output to 3.797 mbd. If this materializes, Iran’s output would exceed its OPEC quota by more than 100,000 bpd.

This is expected to translated into more crude shipments from Iran. According to VesselsValue, the seaborne exports of Iranian crude are rising significantly.

The number of crude laden shipments from Iran increased to 563 last year — up from 66 in 2012 and 277 in 2015, their data showed.

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Figures show Fars province in general and Shiraz in particular were destinations of about 350,000 foreign tourists in the first 9 months of the fiscal year beginning March 21 2016.

Fars province is a gem in the constellation of historical monuments of Iran with over 3,500 registered sites; having been settled in different historical periods, the city has been the center of historic clashes which shaped the history of Iran or of cultural movements which shaped the literature of the country, with giants as Hafiz and Saadi which had been known in the west as pillars of Persian literature and culture.

Figures show that Fars province had been increasingly the destination of more and more tourists seeking the historical aura of the province and its center Shiraz. Official figures of Cultural Heritage Organization indicate that after JCPOA, the curve of foreign tourists coming to the province soared, flatting in 221 per cent of that before the deal.

The monuments in the province is rich in historical significance; Persepolis, Pasargadae, Eram Garden, etc., are destination for every tourists coming to the province. An international airport also provides the city the boon of being chosen as a regular destination. Mosayyeb Amiri, head of provincial Cultural Heritage Organization told Mehr News correspondent that roughly 350,000 tourists came to province since March 21 2016, with an increase of 221 per cent compared to that figure in the same time in 2015; “China, France, Germany, Italy, and Spain top the list of countries from where tourists come, with France with the largest number of tourists visiting province,” he said.

“Hafeziya, tomb of Hafiz, 14th century poet and sage, attracted over 1.33 million tourists, both domestic and foreign; this is the largest number of tourists a single monument could attract; Saadi tomb and garden is also a popular destination,” Amiri added.

“Diversity of historical monuments and an international airport make Shiraz stand out among historical centers of Iran; the city itself has many hotels with international caliber and accommodate foreign tourists,” said the official.

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Iranian film ‘Life and a Day’, directed by Saeed Roostaee, will be screened at the New Directors section of the 40th Portland International Film Festival.

The film chronicles the story of a family preparing for a wedding ceremony, but the situation gets complicated and tough as a result of some incidents, ISNA wrote.

The bitter social drama competed with movies from France, Denmark, Argentina, and Hong Kong to win a total of nine Crystal Simorgh awards at the 34th Fajr Film Festival.

It also won the best award at the 22nd Geneva International Film Festival Tous Ecrans and the prestigious NETPAC (Network for the Promotion of Asia Pacific Cinema) Award at Iranian Film Festival Australia.

The festival will be held on February 9-25 in Oregon, the US.

The event is a non-profit independent film festival that is held in several local theaters in Portland, Oregon. It was founded in 2013 by Joshua Leake and Jay Cornelius. The first film festival was held from August 27 through September 1, 2013 and featured networking events, workshops and food carts. 83 films were shown in the inaugural festival and over 600 were submitted for consideration at the festival. Highlights of the event included Andy Mingo’s short film ‘Romance’, which was based on a Chuck Palahniuk short story.

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Visiting French Foreign Minister Jean-Marc Ayrault says that respecting the nuclear deal known as the Joint Comprehensive Plan of Action (JCPOA) is very important to Paris.

After signing the deal in Vienna, it was very important to France that the JCPOA as an international deal be respected, Ayrault said at the Iran-France joint economic commission underway in Tehran.

After the deal signed between Iran and the major world powers, France did immediately resume all-out ties with Iran, said the visiting foreign minister.

Bilateral ties, particularly the economic relations, will be of benefit to the both, Ayrault noted.

French foreign minister heading a 60-member delegation arrived in the Iranian capital on Monday evening.

During his two-day stay here, Ayrault is to meet with President Hassan Rouhani, Majlis Speaker Ali Larijani and Secretary of the Supreme National Security Council Ali Shamkhani.

According to reports, the volume of exchanges between Iran and France has been 1.5 billion euros in the past ten months, but the figure is planned to triple.

Paris opposed to JCPOA talks’ resumption
Visiting French Foreign Minister, Jean-Marc Ayrault, said on Tuesday that Paris is opposed to any initiative being against the Joint Comprehensive Plan of Action (JCPOA) and in case of resumption of talks, Paris will not absolutely accept it.
French foreign minister made the remarks in a joint press conference with his Iranian counterpart, Mohammad-Javad Zarif, in Tehran on Tuesday.

The US President, Donald Trump, raised a number of concerning issues during and after his presidential campaign but ‘we have to wait to see what will happen in the future and remain cautious,’ French foreign minister said.

He explicitly declared that the US stands should be crystal clear and their unilateral stands under the pretext to fight against terrorism through putting ban on visa issuance is source of concern and very untimely, French foreign minister said.

He added that rational wisdom rules for Americans’ backdown.

“We are concerned about the security of our citizens and mind to control borders but the deeds of those countries doing so should not run counter to international commitments regarding refugees and avoiding discriminations among citizens,” he said.

What happened was blatant discrimination against all countries and ‘we would like to see principles are respected and any measure taken with respect, while being free from any vain tension.’

“We are not alone and many countries approve our path, he said, adding that France has entered talks with the European Union as they have common goals.”

“Prospects of cooperation with French banks should be positive and we should expect more advancement in the sector,” he said.

Since some of the big banks have been punished by the US government in the past, they are more cautious, he said.

“I would like to once again express condolences to Iranian government and nation for disastrous incident claiming lives of some 20 people,” he said.

The JCPOA was a historical achievement for Iran and human society and proves that diplomatic means can work and should not be ignored, he said.

France hopes the JCPOA will be continued to be implemented and solutions can be found to the problems which might put it at risk, he said.

Iran and France are to broaden cooperation in connection with the regional and international developments, said French foreign minister.

‘No one is safe from terrorism and it is among our duties to fight with all these threats and find answers to the raised questions,’ he said.

The region is in dire need of peace, stability, development and welfare and it is time for big countries in the region to find a new formula for Syria, Yemen and Iraq, he said.
There is no military solution for the crises but a peaceful solution provides the room for the countries in the region to maintain their sovereignty and territorial integrity with full respect, said the French minister.

French foreign minister, heading a politico-economic delegation, arrived in Tehran on Monday evening to confer with the country’s officials on issues of mutual interest and regional and global developments.

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French Foreign Minister Jean-Marc Ayrault arrived in Tehran on Monday to attend the first Iran-France joint economic commission.

Ayrault is slated to visit his Iranian counterpart Zarif, President Hassan Rouhani, Parliament Speaker Ali Larijani and other high-ranking officials during his two-day visit.

“Foreign ministers of Iran and France will convene a joint economic and trade commission’s meeting on Tuesday,” Foreign Ministry Spokesman Ghasemi has said earlier.

Ayrault is accompanied by representatives from 60 French companies, directors of Middles East and African affairs at Foreign Ministry, managers of entrepreneurship and international economic institutions, officials in charge of Iranian affairs at Foreign Ministry, heads of Department of Treasury Office, and a number of governmental officials and media persons.

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France‘s foreign minister travels to Iran on Monday, seeking to reaffirm Europe’s commitment to the nuclear deal that US President Donald Trump has threatened to annul.

The deal struck in 2015 with three European countries, Russia, China and the United States gave Iran relief from a range of sanctions, allowing it to strike major business deals with Europe for the first time in years, Reuters reported.

After taking one of the hardest lines in the negotiations, France has been quick to restore trade ties. Plane maker Airbus, oil major Total and automobile manufacturers Peugeot and Renault have all signed deals.

Some 50 French firms will take part in a Franco-Iranian economic forum on Tuesday at which more will be signed.

“Jean-Marc Ayrault is going to underline the importance that all sides which backed the deal strictly respect their commitments,” Foreign Ministry spokesman Romain Nadal told a daily briefing.

Trump has called the deal, which imposes limits on Iran’s nuclear activities, “the worst deal ever negotiated” threatening to annul it or seek a better agreement.

However, Iran’s Foreign Minister Mohammad Javad Zarif recently said Washington cannot unilaterally decide to abrogate the agreement as it is an “international agreement,” and not a bilateral one between Iran and the US.

Earlier this month and on the anniversary of the deal’s implementation, Iranian Deputy Foreign Minister Abbas Araqchi said if Trump went ahead with acting on the threat, Iran would burn the agreement.

The EU says it is in full agreement with China and Russia over the need to keep the nuclear deal alive.

Despite the sanction relief, including on banking restrictions, Iran continues to struggle to access Western finance, partly due to banks’ fears about penalties related to remaining US sanctions.

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A senior Oil Ministry official said Iran is boosting oil production by 90,000 barrel per day in line with last year’s OPEC agreement.

“We are increasing our oil output which will reach the designated production level,” Gholamreza Manouchehri, National Iranian Oil Company’s (NIOC) deputy head for engineering and development affairs told IRNA.

On November 30, 2016, the Petroleum Exporting Countries (OPEC) finalized an agreement to cut its overall production by 1.2 million barrels a day and set its new production ceiling at 32.5 million barrels a day as of January 2017.

The agreement, however, allowed Iran to raise production by 90,000 bpd to nearly four million barrels a day from January this year.

Manouchehri pointed to reports that Iran’s production ceiling has increased beyond the level set by OPEC saying the rise does not run counter to the terms of the agreement.

“Iran’s average oil production must only be below the level set by OPEC in a period of six months,” he added.

The November deal — the first in eight years — also granted Libya and Nigeria, which had seen their production drop due of armed conflict, an exemption from the cut.

Oil has rallied since November amid speculations that the supply cuts would boost prices. Some market analysts say that crude prices could reach $60-$70 a barrel in the coming months if the cuts are fully enforced.

Iran oil market upbeat

Since the lifting of sanctions began in January last year, the Islamic Republic has largely increased oil exports.

Speaking on the first anniversary of the implementation of the Iran nuclear deal in a gathering in Tehran on January 16, First Vice President Es’haq Jahangiri said that the exports of Iran’s oil and gas condensates are at their highest levels since the 1979 Islamic Revolution.

Tehran and the P5+1 — the US, Britain, France, China, Russia plus Germany — signed the nuclear accord known as the Joint Comprehensive Plan of Action (JCPOA), on July 14, 2015.

Under the landmark deal, which went into force on January 16, 2016, the Islamic Republic undertook to place restrictions on its nuclear program in exchange for the removal of nuclear-related sanctions against the country.

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