Iran table tennis women’s national team training held in Tehran Enghelab Sport Complex.

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By: Maryam Azish/ Iran’s petroleum industry is considered as the main generator for national economy following the implementation of Iran’s nuclear agreement with 5+1, known as the Joint Comprehensive Plan of Action (JCPOA).

Energy plays a pivotal role to provide financial resources for Iranian public services and the industrial sector and the deal has paved the way for removal of sanctions on Iranian’s oil sector and benefited the country, the top oil producers and exporters as well as the oil consuming countries.

The absence of Islamic Republic of Iran’s from global markets during sanctions era had caused major problems because some countries were not able and ready to replace country’s oil from other states due to the lack of infrastructure.

The petroleum industry and petrochemical structure of some countries were compatible with Iran’s crude oil and any change for compatibility with other countries would have proven difficult and costly.

However, the implementation of JCPOA created a new opportunity for Iran, oil companies and consumers so that they could recommence their trading like in the past.

Thanks to the JCPOA, the foreign countries and big oil companies have had an immense opportunity for investment in Iran’s oil sector and buying oil from the Islamic Republic.

Following the implementation of the JCPOA in January, the European countries resumed oil imports from Iran or began negotiations for imports of oil from the major oil producer and a new blow has been breathed in Iran’s oil sector which would be materialized in the short-term and some others in the long-run.

The international relations of Iran which is known as the fourth largest oil and the second largest gas reserves in the world have undergone major change following the implementation of JCPOA, and its icy relations with other countries seems to be thawing in the years of sanctions.

From the early days of clinching the JCPOA, a large number of directors of international companies active in oil industry have traveled to Tehran along with their respective country’s economic delegations and voiced their willingness to resume the ties cut-off for years.

Thanks to new model of oil contracts, dubbed as the Iran Petroleum Contract (IPC) which aimed at attracting foreign companies and investments in Iran’s oil and gas development projects, a large number of officials of the most reputable European oil companies, Total SA of France, the world’s fourth major oil company, and Royal Dutch Shell, the Anglo-Dutch firm in particular, have so far held talks with Iranian side aimed at amending mutual cooperation.

Iran’s Oil Export to Europe Up

Recently, National Iranian Oil Company (NIOC) announced that Iran’s oil exports to Europe, which had nearly stopped during sanctions, has risen to 700,000 b/d and the country’s oil exports in October stood at 2.44 million barrels per day.

The Executive Director for International Affairs at National Iranian Oil Company (NIOC) Mohsen Ghamsari has announced that Iran’s volume of oil exports would rise by 150 thousand barrels per day (bpd) within months, stating that the daily amount of 600 to 650 thousand barrels of crude oil are being deployed to the European countries.

Touching upon Iran’s exception to OPEC’s quota and the possibility to boost crude exports from the country, Ghamsari underscored that a daily average of 2.2 million barrels of oil is now being deployed to world markets, adding that under present circumstances, the consumption volume in domestic markets and refineries stands at about 1.8 to 1.85 million barrels per day.

Meanwhile, the Islamic Republic of Iran is also seeking to achieve 13 percent of the production share at OPEC and the feasibility of boosting production by 500 thousand bpd after the oil freeze deal.

Meanwhile, so far Iran has announced several times that it would spare no effort to increase crude exports to 2.35 million bpd in a few months in order to reach pre-sanction levels.

Iran’s oil sales to Asia up 92%

On Oct 2016, Iran’s Ministry of Petroleum reported a dramatic jump in its oil exports to Asia, emphasizing that its supplies to the world’s largest consumption zone are now much closer to pre-sanctions levels.

According to the Ministry’s report, Iran’s exports of crude oil to Asian clients for August stood at around 1.7 million barrels per day (mb/d). The figure showed an increase of 92 percent year-on-year, adding the Asian countries currently comprise 63 percent of Iran’s oil export destinations.

Iran’s Petroleum Minister Bijan Zanganeh said in mid-October that Iran’s oil production had already reached close to pre-sanctions levels. Zanganeh emphasized that the country is currently producing about four million barrels of oil per day, PressTV wrote.

Earlier, Reuters quoted market data as showing that Iran’s oil sales to Asian clients for July stood at an average of 1.6 mb/d, adding that the figure showed an increase of above 60 percent compared to the same period last year.

China imported 0.56 mb/d which was the largest volume of imports among the four Asian clients of Iran’s oil, Reuters said. India was the second biggest importer of Iranian oil at 0.52 mb/d followed by South Korea and Japan each respectively with import volumes of 0.29 mb/d and 0.25 mb/d.

In mid-January, a series of economic sanctions that had been imposed on Iran for multiple years were removed after a deal between the country and the 5+1 – the five permanent members of the UN Security Council plus Germany – was implemented.

The sanctions barred foreign investments in the Iranian oil industry and also imposed a low ceiling of 1 million bpd on the country’s oil exports among a series of other economic restrictions.

The aforementioned points illustrate that the historical nuclear deal has not only benefited the Islamic Republic of Iran but also has provided advantages for many oil companies and consumers.

The deal has paved the way for major oil companies to make investment in Iran’s development and exploration projects.

Additionally, fostering production capacity and enhancing the rate of recovery from oil and gas fields and reinforcing Iran’s share of oil and gas markets will benefit consumers and guarantee their energy supply security.

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An IOOC official said volume of Iran’s crude oil production capacity in the Persian Gulf has risen by 10 thousand barrels.

Describing new plans to boost crude output in the Persian Gulf, Technical Director of Iranian Offshore Oil Company (IOOC) Manoochehr Davoodi said given the overhaul of a number of offshore wells in Ilam platform at Siri Oil field, a total of 10 thousand barrels will be added to daily production of oil in the region.

“Meanwhile, the volume of natural platform in the southern Iranian field will be increased by about 5 to 10 million cubic feet,” he continued.

Davoodi went on to note that the uplift in Iran’s crude oil output in the Persian Gulf comes after 16 years given that seabed issues had made it impossible to install drilling rigs.

The official said overhaul of the oil well aimed to provide LNG feedstock to Siri complex recalling “in the present week, Pasargad 100 Jackup, as the third domestically-constructed rig used by IOOC, will be set up on a platform in Ilam field.”

“Two drilling rigs will be put to operation in order to drill and overhaul a total of seven wells in the offshore Iranian field,” underscored Davoodi.

IOOC technical director went on to emphasize that drilling and overhaul processes of remaining wells will be accomplished in the near future.

Siri island is situated about 72 kilometers off the coastal line in the south of Bandar Lengeh Port and 40 kilometers to the west of Abu Musa in the Persian Gulf.

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A consortium of Indian companies led by ONGC Videsh (OVL) is set to strike a deal with Iran by January for the development of Farzad-B gas field in the Persian Gulf.

 Iran to become the biggest oil supplier to India

This comes at a time when Iran surpassed Saudi Arabia to become the biggest oil supplier to India in October, after sanctions on the former were lifted in January. According to a Reuters report, in October this year, supply from Iran increased to 789,000 barrels a day (bpd), compared with Saudi Arabia’s 697,000 bpd, business-standard.com reported.

Farzad B gas field, Persian Gulf

“Our relationship with Iran is strategic and long-standing. As far as the Farzad project is concerned, financial issues will be sorted out and we will finalize the deal by January. We have already appointed a consultant for that,” said an official close to the development.

Though India had shown interest in the project long back, sanctions by the United States and other Western countries on Iran delayed things. Farzad-B has gas field has reserves of about 21.6 trillion cubic feet.

Managing Director of Pars Oil and Gas Company, which is in-charge of the project, Mohammad Meshkinfam told the Iranian media that it deemed the “economic development model” was the main basis of disagreement between both the countries. “In case no agreement is reached within the envisaged time, the development of Farzad-B will be put to international tender,” he said.

Under Petroleum Minister Dharmendra Pradhan, India has focused on countries such as Iran and Russia for sourcing of hydrocarbons. In the recent past, India had invested about $4.25 billion in Russia only.

A consortium led by state-run Indian Oil Corporation, Oil India and Bharat PetroResources had signed a $1.3-billion deal in Russia for a 29.9-percent stake in the Taas-Yuriakh oilfield in March. Later, the consortium also struck a $2.02-billion deal for 23.9 percent in Rosneft’s Vankor field.

According to the Petroleum Planning and Analysis Cell, India imported 202.85 million tons of crude oil in 2015-16, up from 189 million in 2014-15.

About: Farzad B gas field, Persian Gulf

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The 11th WTF World Junior Taekwondo Championship wrapped up in Canada with Iran’s girls  squad standing on the top of the podium and the boys’ team taking the fourth place.

The 11th edition of WTF World Junior Taekwondo Championships kicked off in Burnaby of Canada on November 16 with participation of over 800 taekwondo fighters from 110 countries in the world. The competitions concluded on November 20 with South Korean boys and Iranian girls winning the championship title in the two male and female sections.

In regards to both male and female teams, South Korea claimed the first place while Iran, with the boys’ squad standing at the fourth, become vice champion. Russia stood at the third place in the international competition.

Iran’s female squad finished in first place with 55 points with two golds won by Mobina Nejad-Katesari and Zahra Pouresmaeil, as well as two bronze medals clenched by Mobina and Parisa Javadi.

The male Taekwondo fighters stood at the fourth place with 58 points by Amir Mohammad-Bakhshi’s gold, Ebrahim Safari’s silver, and Ali Baseri’s bronze medal.

The tournament brought together 846 young male and female taekwondo fighters from 110 countries, including Azerbaijan, Bulgaria, Chinese Taipei, Croatia, Cyprus, India, Iran, Mexico, Mongolia, the Philippines, Russia, Serbia, South Korea, Spain, Turkey and the United States.

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A top Iranian trade official says the volume of foreign investments in the country is expected to increase by six times until next March to reach around $12 billion.

Feriyal Mostofi, a member of Tehran Chamber of Commerce, told reporters that foreign investments in Iran for each Persian calendar year (starting 21 March) stood at about $2 billion.

This year, however, it is expected to reach between $10 billion to $12 billion once the contracts that have been signed after 21 March are made operational, said Mostofi.

UNCTAD: Iran attracted $2.05 billion and $2.10 billion in 2015 and 2014

Based on figures released by the United Nations Conference on Trade and Development (UNCTAD), Iran attracted $2.05 billion and $2.10 billion in 2015 and 2014.

Iran had been off limits to global investors as a result of US-led sanctions that banned major investments in the country, specifically in its oil and gas industries that provide the lifeline of its national revenues.

The sanctions were removed in January after a landmark nuclear deal between Iran and the so-called P5+1 – the five permanent members of the Security Council plus Germany – came into effect. This paved the way for new investments in Iran. However, global businesses – and specifically major banks – are still concerned about the impacts of the US primary sanctions against Iran and have so far shown a lukewarm welcome to the country’s investment opportunities.

On the same front, Mostofi emphasized that major European banks were still failing to proceed major Iranian trade proceedings, adding that Iran can currently open letters of credit (L/Cs) for small volumes of transactions below €50 million.

Insurance companies, Mostofi said, were more cooperative in working with Iranian businesses.

Mohammad Atabak, another member of Tehran Chamber of Commerce, told Iran’s state news agency IRNA that there has been a strong interest by European companies in the country’s steel industry.

“There has been a significant increase in the number of European companies that have been approaching their Iranian counterparts to purchase steel and also buy the shares of Iran’s steel companies,” said Atabak.

Iran is the world’s fourth biggest steel producer with a total production capacity of 24 million tons per year. The country has devised serious plans to increase its steel production capacity to as high as 55 million tons per year before 2025.

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The Lloyd’s of London insurance market has announced plans to launch offices in Iran – a move that could help the country’s efforts to open its economy to post-sanctions investments.

The Lloyd’s of London insurance market says it is negotiating with to open branches in the country’s free trade zones.

Inga Beale, the CEO of the world’s leading specialty insurer, was quoted by Iran’s domestic media as saying that Lloyd’s of London would establish branches in Iran’s free trade zones.

To the same effect, two Lloyd’s directors will soon travel to Tehran to discuss the technicalities for this, Beale was quoted as saying by Iran’s state news agency IRNA. She made the remarks in a meeting with Abdolnasser Hemmati, the head of Iran’s Central Insurance Company, during a visit to London on Friday.

Beale further added that Lloyd’s syndicates are interested in returning to the Iranian market. She further stressed that it is important for Iran to remove the problems that obstruct the transfer of money in the insurance industry.

Hemmati, for his part, said the presence of insurance giants like Lloyd’s in Iran is important for the country.

Following the removal of sanctions against Iran in January, indications appeared to show that global insurers were looking into the prospects of penetrating into a market whose worth is estimated to be around $7.4 billion in premiums.

According, European majors including Allianz, Zurich Insurance, Hannover Re and RSA were the first to announce that they would evaluate potential opportunities in the country specifically in its marine, aviation, power generation and energy sectors.

Nevertheless, the only companies that have already taken steps to create a foothold in Iran’s insurance industry have been Germany’s Hermes, Italy’s SACE, and France’s Coface. They have all recently signed agreements to guarantee a certain trade activity with the Islamic Republic, Reuters in October.

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The 8th Iran Air Show aiming at presenting aviation and aerospace industries capabilities and introducing the latest aviation achievements and technologies started work on Nov 16 in the Persian Gulf Kish Island.

The opening ceremony of the event was held in the presence of Iran’s Defense Minister Brigadier General Hossein Dehqan, Head of Civil Aviation Organization of Iran Ali Abedzadeh, Kish Free Zone Organization Managing Director Ali Asghar Moonesan, deputies of the Ministry of Road and Urban Development, ambassadors of Senegal and Russia, and heads of aviation firms and some other officials.

Over 100 domestic firms from aviation and aerospace organizations, institutions, research centers, universities and higher education centers and production companies and foreign firms from Germany, Russia, Italy, England, Japan, Poland, Latvia, Singapore, Malaysia, Turkey, France and Ukraine participated in the event.

The event is being held in two sections of exhibition and air show.

In exhibition section, potentials of aviation industry, knowledge-based firms, and air plane parts designers is shown while in air show section, fans will see aircraft flying in the sky.

The sub-events consist of unveiling some innovative and knowledge-based plans, holding a meeting on Iran-Russia cooperation, holding Aerospace National Day and workshop.

The event is supported by Kish Free Zone Organization, Ministry of Defense, Iran Aviation Industries Organization, Iran Civil Aviation Organization, Iranian Airports Holding Company (IAC), The Airline of Islamic Republic of Iran (Iran Air) and Presidential Deputy for Science and Technology.

The 8th International Iran Air Show will be underway until Nov 19 in Kish International Exhibitions Center.

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IOEC managing director has reported on Iran’s plans to take part in offshore oil projects in Europe and Africa.

Managing director of the Iranian Offshore Engineering and Construction Company (IOEC) Abolghasem Rahmani touched upon partnership with foreign firms for exports of technical and engineering services adding “Iran’s unique and precious experiences in offshore oil projects can be exported to other states.”

“Accordingly, agreements have been reached with a Dutch firm in order to swap equipment if need be,” he noted.

The official said talks had been also made with a number of international companies to implement projects in the Black Sea in Europe and well as Nigeria in Africa.

Rahmani, however, emphasized that these agreements have not been inked yet since final negotiations need to be held.

On foreign projects undertaken by IOEC, the official said one such project pertains to a submarine gas transmit pipeline in Europe which will be carried out in 2017.

“Talks are still underway for the project the details of which will be announced in due time,” he continued.

IOEC managing director said another project, which is being talked over, aims to construct a 500-kilometer oil transfer pipeline in Africa; “since the plan is going to be carried out in Nigeria, security issues are also at stake which are being discussed.”

Unlike the past, Iran has become self-sufficient in all sectors on offshore industry and offshore oil projects including construction and installation of oil rigs and submarine pipelines.

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National Iranian Tanker Company (NITC) announced Poland’s readiness for cooperation with the company and investment in different fields of marine transportation of oil and gas products.

Managing Director of Polish Ciech Trading Company Tomasz Grzela announced his company’s readiness in meeting with Managing Director of NITC Cyrus Kian Erthi here on Thursday.

He said that our company is ready for joint investment with NITC in different sectors like bunkering, carrying petrochemical products and liquefied natural gas (LNG), IRNA reported.

Grzela proposed that a joint venture company to be established for development of cooperation between the two companies.

Kian Erthi said NITC is ready for cooperation with Polish companies in different fields of shipping and transporting oil and gas products.

He said that Iran is ready to have mutual cooperation with Poland in the sector of transportation of LPG and LNG.

Kian Erthi also welcomed proposal of Grzela to establish a joint venture company.

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