Iran Oil Terminals Company (IOTC) reported that negotiations have been held with a Dutch firm to renovate and develop Iranian oil terminals in the Persian Gulf as well as establish a floating oil terminal.

The company’s Managing Director Pirouz Mousavi said on the sidelines of Offshore Energy Exhibition and Conference (OEEC) in the Netherlands that Iran’s crude and gas condensate exports has reached pre-sanction levels, according to Mehr News Agency.

He noted that “currently, all facilities, equipment and infrastructures for storage, loading and exports on oil products have been renovated and upgraded”.

The official enumerated several areas for Iran-Netherlands cooperation including modernization of harbors, loading arms, storage facilities and Single Buoy Moorings (SBMs).

A number of SBMs used in Iranian oil terminals are Netherlands– made

He added that a number of SBMs used in Iranian oil terminals are Netherlands– made and partnership can be established for supplying required equipment.

“Presently, given the refurbishment of facilities, a total of 10 oil tankers can dock at Kharg terminal which caters for 93 percent of Iran’s crude exports,” highlighted Mousavi. He considered this achievement as a great success for the country’s economy.

IOTC official added that his company will continue to update storage and export facilities of crude and gas condensate to meet international standards.

Together with domestic companies which meet most of the demand, Dutch firms can also participate in the market, he added.

“Following the removal of sanctions, the highest loading per day at Iran’s Kharg oil terminal has been more than seven million oil barrels which were received by Iranian and foreign tankers,” he concluded.

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Iran said on Sunday it will soon sign six agreements with international energy giants over the development of its oil sector projects.

Gholam-Reza Manouchehri, the deputy for engineering and development affairs of the National Iranian Oil Company (NIOC), specified neither the companies nor the projects. Nevertheless, he did indicate that the projects were large scale.

The foreign companies will play a central role in the development of major fields.

Manouchehri further emphasized that the companies that won oil sector deals in Iran would have to team up with locals, IRNA reported.

“The foreign companies will play a central role in the development of major fields,” said Manouchehri. “Still, they will have to use the help of Iranian companies for their projects.”

The official also added that Iranian companies can be only the project leader for the development of small fields and can use the help of foreign enterprises.

Elsewhere in his remarks, Manouchehri said that Iran has so far signed memorandums of understanding (MoUs) with 10 companies over the development of certain oil sector projects. However, he did not name the companies and the projects for which they have signed the MoUs.

Last week, the NIOC invited eligible international companies to participate in the pre-qualification phase of a tender for 50 exploration and development targets across the country.

The targets include a variety of low and average risk oil and gas fields. They include lucrative oil targets like South Azadegan, Changuleh, and Ahwaz-Bangestan as well as promising gas fields such as Kish, Farzad-A, North Pars, Golshan and Ferdowsi.

The tender is a central part of Iran’s plans to increase its production to above four million barrels per day – the same level that existed before a series of draconian US-led economic sanctions were imposed against the country in 2012. /IRAN-DAILY

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Deputy oil minister said oil cooperation between Iran and Germany’s Deutsche Bank have been resumed.

Iranian Deputy Oil Minister for International Affairs Amir Hossein Zamaninia touched upon lack of cooperation on the part of major European banks with Iran especially as regards oil deals in the post-JCPOA era and added “however, unlike the past when collaborations were limited to small European banks, prominent banks are also boosting their ties with Iran.”

Transactions with Deutsche Bank of Germany were resumed a few days ago for conducting a number of oil deals

“Transactions with Deutsche Bank of Germany were resumed a few days ago for conducting a number of oil deals,” stressed the official asserting that several other major European banks will reinvigorate ties with Iran in coming days.

Zamaninia, while pointing to the held talks with giant oil companies over new oil partnerships under IPCs (Iran Petroleum Contracts), said “a number of firms are still harboring doubts about launching cooperation with Iran within the framework of the new model for Iranian oil contract though negotiations are still underway.”

“Talks are being conducted in order to introduce IPCs to foreign companies, European ones in particular,” maintained the official adding “developments have emerged in negotiations with several major European companies the results of which will be announced within weeks.”

Germany’s Deutsche Bank had officially suspended banking activities in Iran in 2006 especially in areas of crude or oil product sales.

In 2007, Deutsche Bank spokesman Ronald Weichert then confirmed that it was pulling out of Iran, a country where it derives just 0.1% of its revenue, because it didn’t make business sense to stay.

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Iranian oil minister has announced that the country’s crude production will rise to 4.5 million barrels per day (bpd) in the current Iranian calendar year (began March 20).

Speaking at the second oil and energy congress in Tehran, Oil Minister Bijan Zanganeh described priorities of the industry in the post-JCPOA era adding “crude production capacity of Iran will hit four million barrels per day in the present year while the overall figure, including gas condensate, will exceed 4.5 million bpd.”

“Production capacity for gas condensate will also reach about 688 thousand barrels a day,” highlighted the Iranian minister estimating that the figure will hit one million bpd by 2018 upon implementation of new South Pars phases.”

Iran’s gas output will be increased to approximately 900 million cubic meters per day by the end of the current year

The member of the Iran cabinet noted that gas output will be increased to approximately 900 million cubic meters per day by the end of the current year; “on the basis of developmental plans in gas industry, the production capacity is expected to go over one billion cubic meters by the end of the upcoming year.”

Iran oil industry investment plan

Zanganeh further touched upon the plans to attract investment in oil industry explaining “the Sixth National Development Plan requires that 134 billion dollars of financial resources be absorbed in the upstream petroleum sector.”

He pointed to the plan to attracting around 52 billion dollars of financial resources in petrochemical industries recalling “a 15-billion-dollar investment has been envisaged for expansion of Iran’s refinery industry while an aggregate total of about 200 billion dollars need to be attracted to the country’s oil, gas and petrochemical industries.”

Oil Minister Zanganeh went on to enumerate three top developmental priorities of oil industry including expansion of South Pars gas field, development of West Karun joint fields as well as increasing recovery factor; “Phases 17, 18, 19, 20 and 21 of South Pars will come on stream in the present year and Iran’s daily production volume will equal that of Qatar in the coming year.”

Developmental contract for Phase 11 of South Pars

“A developmental contract for Phase 11 of South Pars will also be inked in the coming months,” stressed the oil official underscoring that the country’s overall gas production capacity will reach more than one billion cubic liters in the year to follow.”

Zanganeh said gas supply to villages, increased exports and development of LNG sector remain as three strategic aims pursued in the Iranian gas industry; “the share of oil products in the feedstuff of Iranian power plants has declined from 18 per cent a year ago to less than 10 per cent in the current year.”

Iran Petrochemical production

“Petrochemical production will rise by five million tons in coming months,” emphasized the official saying “in time with development of downstream sector, oil production will begin form oil layers of South Pars field for the first time ever.”

“A developmental contract for the second phase of South Pars as well as an agreement to increase recovery factor of the joint field will be sealed in the ongoing year.”

Oil minister of Iran reiterated that “given the increased share of gas in the country’s energy basket, Iran has turned into a major exporter of oil products as a daily average of approximately 20 million liters of gas oil is being deployed to global markets.”

Referring to operation of the first phase of Setare Khalij Fars Gas Condensates Refinery and the halt in gasoline imports as of the next year, Bijan Zanganeh concluded “Iran’s oil refining capacity will soar to more than three million barrels per day by the end of the Sixth National Development Plan.”

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India- Iran’s top customer after China — imported about 552,200 barrels per day (bpd) of oil from the Persian Gulf nation in September, more than double the same month a year ago following the end of sanctions on Tehran in January.

India’s oil imports from Tehran in January-September grew 90.5 percent to an average 411,900 bpd, ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts showed.

Iran has been boosting oil shipments to recoup market share.

The OPEC producer’s total crude oil and condensate sales likely reached around 2.8 million barrels per day in September, two sources said, nearly matching a 2011 peak in shipments before sanctions were imposed.

Iran, along with Libya and Nigeria, is allowed to produce “at maximum levels that make sense” as part of any output limits in a surprise deal reached recently by the Organization of the Petroleum Exporting Countries (OPEC).

Under pressure from sanctions, New Delhi had curbed Iranian oil shipments, reducing Tehran’s overall share of India’s oil imports to 5.8 percent in the two fiscal years from April 2013, compared with about 11.3 percent before sanctions were imposed.

India’s average Iranian oil imports in April-September — the first six months of India’s financial year — rose nearly four-fifths to about 468,000 bpd, the data showed, with Tehran’s share in overall purchases jumping to 11 percent — just below pre-sanction levels.

Average imports over the period were at their highest in at least 15 years, the data showed.

India, the world’s third-biggest oil importer, shipped in a record about 4.47 mbd oil in total in September, about 4.4 percent more than the previous month.

State-run Mangalore Refinery and Petrochemicals Ltd. was the biggest importer of Iranian oil in September buying about 150,200 barrels per day, the data showed.

Essar Oil imported about 134,000 bpd followed by 131,000 bpd by Indian Oil Corp. and 69,000 bpd by Reliance Industries, Hindustan Petroleum imported about 68,000 bpd oil.

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The Organization of the Petroleum Exporting Countries (OPEC) says Iran’s oil production has reached a new record high of 3.665 million barrels per day (mb/d).

OPEC in a monthly report said it had recorded Iran’s new oil production capacity for September.

The country’s production in August stood at 3.634 mb/d, the Organization added in its report as reported by Azernews.az.

Iran is presently OPEC’s third largest producer after Saudi Arabia and Iraq.

It has repeatedly announced that it plans to increase its oil production to as high as 4 mb/d that existed before US-led sanctions imposed against it in 2011.

The sanctions mainly prevented foreign investments in Iran’s oil industry that it needed for its oil production. They also restricted the country’s oil exports to around 1 mb/d.

Before the sanctions were lifted, Iran said it had made the necessary preparations to boost its oil production capacity to pre-sanctions levels.

Iran’s Petroleum Minister Bijan Zangeneh had repeatedly emphasized that the Islamic Republic was determined to regain its share of the oil market that it had lost as a result of the sanctions within a short period of time.

Iranian oil sales have nearly doubled since sanctions were lifted on its oil exports in January 2016. In fact, Iran is recovering market share faster than many experts had expected, Azernews.az added in its report.

In early June, Reuters reported a rapid surge in Iran’s oil exports which in itself indicated a rise in the country’s oil production. Reuters said shipping data showed the country’s oil exports were close to pre-sanctions level of 2.5 million barrels per day, stressing that it had been able to improve its exports capabilities at a much faster pace than anticipated.

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President of Middle-East & North-Africa Total Exploration & Production, Stephane Michel, said on Saturday that oil giants are in competition to come back to Iranian market.

The Persian daily, Iran, quotes Michel as saying that in the wake of lifting the sanctions and implementation of the Joint Plan of Action (JCPOA), Iran’s international relations have undergone major change.

The ice of economic and commercial relations between Iran and other countries in the years of sanctions are getting melted.

He said that the oil industry, standing as the most important source of income for Iran, was one of the Iranian economic sector which suffered from the sanctions.

Under sanctons, oil production fell down due to restrictions on oil exports due to lack of proper and timely investment to the extent that export of gas lowered to less than one million bpd from more than 2.2 million bpd.

However, good predictions were envisaged for the propspects of Iranian oil economy were made in 2014.

In addition to reforms in government’s macro policies, which led to considerable growth in oil production even before lifting the sanctions, new atmosphere was created for return of investors and oil giants to Iran.

From the early days of the the nuclear deal, directors of the the international companies active in oil industry visited Tehran along with their respective country’s economic delegations and voiced interest in resumption of the ties cut-off for years.

Officials of the most reputable European oil companies held talks with Iranian officials.

Total SA of France, the world’s fourth major oil company that signed four contracts with Iran in the years prior to sanctions, is willing to come back to Iran.

The subject of the first contract is purchase of 160,000 bpd oil from Iran by Total, indicating the company’s interest.

In the post-sanctions era, Total team of experts and senior officials visited Iran four times following up issues of mutual interest.

This time reporters went to the 46-storey building of Total in Paris to hold talks with the senior officials.

Michel took part in the Q&A session with reporter of the Persian daily of Iran.

During the interview, the senior director of Total said that the French company is highly willing to return to Iranian oil industry.

He said that all the world oil giants have got prepared for entering Iranian oil industry and are competing with each other.

Michel said Total team of managers set two main conditions for resumption of ties with Iran and that fortunately two of the conditions have been met.

The first condition of Total was elimination of international sanctions on Iran, that was met in January 2016, and now all sanctions are lifted.

The second condition was related to oil contracts. According to the Total official, Iran’s previous contracts, which was the basis of cooperation with foreign companies, was based on the buy-back model, being less beneficial for the foreign party.

For this reason, foreign companies had called for amendment of Iranian oil contracts.

Of course, Iranian government had prior to the sanctions lifted, decided to attract foreign investment.

After months of debate and approval of the new model of oil contracts, the so-called IPC, the contracts were finalized and published.

In an interview with Iran, Michel reiterated Total’s willingness for presence in Iranian oil industry.

‘We are fully prepared for beginning projects and signing contracts with Iran. We are only waiting release of the new oil contracts to foreign companies. Total is ready for cooperation in oil production and exploration, willing to enter Iranian petrochemical industry.’

The Total of France official said that the contract for joint production of engine oil, signed several years ago between a private Iranian company and Total, will be activated.

The gas industry is also one of the main priorities of Total for investment in Iran.

Of course, the point Michel is stressing is transfer of the technical and engineering know-how.

The director said the MoU signed between Iranian Ministry of Petroleum and the company was enforced during visit of Iranian president to Paris.

He added that since the deal was signed, Total team of experts launched needs assessment job on the projects for cooperation, amount of investment and the technology.

Noting that Iran is a big country and is an influential player in energy for enjoying giant oil and gas reserves, Michel said Total SA of France can meet part of the investment needed for the oil projects, in parallel with transfer of technology and know-how.

He noted that of course, due to the world’s economic recession over the past several years, investment has been on the downward trend so far.

iIn 2014, Total SA of France made more than 28 billion euros investment and it is predicted that the figure will rise to 15 billion to 17 billion euros in 2017. /IRNA

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Iran Oil minister has said contractor companies would only receive agreed amounts if they increase the recovery rate in Iranian oil fields.

Bijan Namdar Zanganeh told the press on Tuesday morning that at least $100bn in investment were required to revive the industry to fresh conditions where Iran’s excavation companies would provide services to other countries.

Zanganeh was speaking to the press on the sidelines of an agreement with Pars Oil and Gas Company (POGC) to work on four massive oil fields as the first deal after reforms introduced to overall scheme of oil contracts.

 Iran oil minister: “The industry currently requires $100bn in upstream section.”

“Iranian domestic companies would provide engineering services in oil and gas to other countries; a priority is also put upon improving the well recovery rate of Northern and Southern Yaran, Koupal, and Maroun,” Zanganeh added. “The industry currently requires $100bn in upstream section; we believe mergers and new offshoots of excavation and exploration companies would not weaken the mother holding, but would also attract investments and facilitate inflow of new technologies; the ultimate outcome would be improved and increased production and revival of antiquated oil wells.”

Zanganeh also said that development of South Azadegan oilfield was a priority post-JCPOA times; “currently, the recovery rate in Sarvak formations in shared field is mere 5 per cent, virtually rendering the remaining 95 per cent to other predators; other fields including Rag Sefid, Asmari, Koranj, Pakdel, Shadegan, etc., are in the queue for new contractors, with 600 billion barrels of crude in West Karoun massive field, and with only 150 billion barrels extractable with current recovery rates,” he detailed. /MNA

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An official at NIOC said Iran has begun crude sales to British companies as the first one-million-barrel shipment was delivered to British Petroleum.

Seyyed Mohsen Ghamsari touched upon resumption of oil exports to British firms in the post-JCPOA era saying “so far, two crude oil and gas condensate cargos have been sold to two companies in the UK.”

Executive director for international affairs at National Iranian Oil Company (NIOC) emphasized that the two cargos have been exported to Britain under single-shipment contracts; “negotiations are still in progress with companies like Shell or BP to ink long-term oil sale agreements.”

The official further stressed that a single cargo of gas condensate has been recently sold to BP asserting “under the spot contract, one million barrels of Iranian gas condensate were delivered to the British company.”

“Talks have also begun with Royal Dutch Shell Oil industry company over long-term sales of crude oil though no final agreement has been reached yet,” stated Ghamsari.

He recalled that mechanism and volume of oil sales within long-term deals are still being negotiated with Shell; “NIOC will continue negotiations with the British firm in order to finalize the contracts.”

In July, Shell imported 130,000 tons of Iranian crude from Kharg Island on 8 July to continental Europe with the destination being Rotterdam of the Netherlands.

Iran’s NIOC had earlier subjected new orders by Shell to clearing its debts for previous purchases and it was in April that the Iranian company confirmed clearance of the 2.8-billion-dollar debt by the Anglo-Dutch company.

Earlier this year, Ghamsari had maintained that Shell owns refineries or shares of refineries in various world countries adding “the possibility exists for Shell to transfer a portion of the purchased crude to Germany.”/MNA

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Managing Director of National Iranian Oil Company Ali Kardor said on Monday that NIOC has been able to achieve the target of four million bpd output in the wake of lifting the sanctions.

He made the remarks in his speech to a group of the Petroleum Ministry officials.

Kardor said that Iran has been able to maintain its 14 percent quota in OPEC.

Let’s not forget that the rivals go on pumping oil and gas quickly, so Iran should not lag behind in producing oil and gas, Kardor said.

He said that Iran has also been able to raise its oil selling capacity to four million barrels.

‘Our oil production capacity should reach 5.2 or 5.7 million bpd.’

Kardor said Iran has over the past 11 years, embarked on horizontal drilling in South Pars layer for three times and only 700 meters were drilled due to lack of necessary technology. ‘Qatar, however, drilled 12 kms in joint oil layer horizontally and exploited 340,000 bpd oil.’

‘We should update our technology and regain our rights in the joint fields; Any claim that incentives will be given to the foreign executives is wrong. We do not accept it at all because as far as oil contracts are concerned, we will notify the foreign contractors of all our terms and conditions. Now, we should do something to make other countries dependent on us because a country like Saudi Arabia has a close watch on Iranian oil talks and contracts with other countries. Also, Saudi officials give highest amount of discount to foreign customers in a bid to create problems to Iranian oil industry. We should take back our part in the oil industry and support our oil and gas development with all might because we are progressive in economy. We have been able to improve the country’s economic growth with that amount of oil exports. The new model of oil contracts gives less than 8.2 percent share to foreigners and the remaining 92 percent of the privileges belongs to Iran government.’

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