In this period, the export of petrochemicals and gas condensates registered a 38.8 percent hike as compared to the same period of last year.

Another statistic indicated that Iran’s export of handwoven carpets and handicrafts registered a 4.7 percent growth from March 21 to July 23.

Over 35.7 million tons of products, valued at $17.3 billion, were exported from the country, showing a 6.4 percent decline and also a 22 percent hike in weight and value respectively.

Accordingly, the imports of non-oil goods into the country showed a 12.2 percent decline and a 16.8 percent hike in weight and value respectively, the report added.

Based on the report of the ministry country’s foreign trade value in the first four months of the current year hit about $28.9 billion, the rate of which stood at about $36.5 billion in the last year’s corresponding period.

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The Soroush gas field in located on Kharg Island, Bushehr province.

The operation was undertaken with cooperation of National Iranian Tanker Company (NITC) and coordination of Iranian Offshore Oil Company (IOOC) by dispatching “Forest” tanker to Soroush field to inject gas condensates to its wells.

The operation was successfully accomplished for the first time in the history of Iran oil industry.

It was aimed at paving the way for continuation of gas production in the joint field and increasing the industry’s flexibility in critical conditions.

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The giant structure was carried to the South Pars field aboard Barge 124FLB in the weekend, after 98 percent completion in Iran Marine Industry Company (SADRA).

After a week-long wait for the weather to go steady, the mega platform D14 cut through water in the Persian Gulf and docked on the gas condensate depository.

Installation of accessories like connection bridge and torch will begin soon to operationalize the platform which will increase gas production of phase 14 of South Pars field by 14.2 million cubic meters per day to reach 56 million m3/day in total, according to South Pars Phase 14 Development Plan Executive Mohammad Mahdi Tavassolipour.

He also said that the platform, as a part of offshore section of the Phase 14, will become operational and join the production circuit by the next two months.

The offshore section is currently producing 42 million cubic meters of gas every day through three platforms A14, B14, C14.

Once the new platform D14 is ready to operate, the Phase 14 of South Pars filed will produce 50 million m3/day of sweet gas, 75,000 bpd of condensate, 400 tonnes/day of Sulfur and an annual amount of one million tonnes of LNG and Ethan.

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“Iran is now extracting around 600 million cubic meters per day of natural gas from the field, twice the amount five years ago,” Mohammad Meshkinfam said.

“Except for Phase 11, other phases including 13, 14, 22, and 24 have come on stream,” the official added.

He noted that the company has built 13 refineries, drilled 267 wells, and laid 3,500 kilometers of subsea pipes.

According to Meshkinfam, the field’s daily output will soar to 850 million cubic meters of natural gas, one million barrels of condensates, 10 million tons of LPG and 5,000 tons of sulfur when it is in full operation.

South Pars, which is located in the Persian Gulf and shared between Iran and Qatar, is the world’s largest gas reserve. It holds an estimated 51 trillion cubic meters of in-situ natural gas and some 50 billion barrels of condensates.

The megaproject is being developed in 24 phases.

According to an estimate, Iran’s recoverable gas stands at 10 trillion cubic meters and Qatar’s is estimated to be over 25 trillion cubic meters.

Meshkinfam had earlier said that “more than $70 billion have been spent on the gas project over the last 15 years and the field requires between $20 billion and $30 billion in additional spending to become fully operational.”

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The country is planning to send the layer’s 5th oil consignment in the coming days, said Fardin Asadi, operator of SPOL’s development project.

He said a 500,000-barrel crude oil consignment is being loaded for export in the current week.

He said production from the layer’s 7 wells has been planned to maximize production life of the reserves while maximizing production.

Asadi further said that injection operations will begin by March 2018 in order to stabilize reservoir pressure of the layer.

The layer is estimated to roughly hold over 6 billion barrels of oil with over 10% recovery rate that can be enhanced to beyond 35% by adopting EOR and IOR techniques.

More exact estimation of the layer needs spudding more exploration wells, he said.

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The first major Western energy investment since sanctions against Tehran were lifted will cost up to $5 billion, with production expected to start within 40 months, an Oil Ministry source said, Reuters reported.

The US and other world powers lifted sanctions after the country pledged to roll back its nuclear program.

With the 20-year deal, Total is now returning to Iran, where it first began operating in the 1990s. Total CEO Patrick Pouyanné said in a statement on Monday that the investment would be “in strict compliance with applicable national and international laws”.

The US still has restrictions in place that block most American companies from investing in Iran. And some Western companies have been reluctant to jump in since Iran still faces sanctions that prevent firms from transacting with Iran in US dollars.

Total estimates the first phase of the project will cost around $2 billion. It is taking a 50.1 percent stake in the South Pars project. CNPC will own 30 percent while the other 19.9 percent will go to Petropars.

The project will have a production capacity of two billion cubic feet per day, or 400,000 barrels of oil equivalent per day including condensate, according to Total.

Iran’s Oil Ministry predicts the project will eventually produce gas products worth $54 billion based on current prices. The gas will start flowing into the Iranian market in 2021.

Iran has significantly ramped up its energy production since the sanctions were relaxed.

Figures from OPEC show Iran has boosted its daily crude oil production by more than 33 percent since 2015.

Iran sits on nine percent of the world’s proven oil reserves and 18 percent of the planet’s natural gas, according to data from BP’s Statistical Review of World Energy.

Iran and Qatar share the South Pars field.

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 to repair and upgrade its oil and gas fields. It also seeks the transfer of technology to its oil industry after a decade of sanctions.

Iran has named 34 companies from over 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 to conduct feasibility studies 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.

In May 2016, 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.

President Rouhani:
Developing South Pars Phase 11 not only an economic contract, but also a scientific, technological, management cooperation

President Rouhani met with the Chairman and CEO of France’s Total company and described South Pars region as an important centre for developing international cooperation with Iran in the field of energy-technology.

In the meeting that was held on Monday in Tehran, Dr Rouhani told Total’s Patrick Pouyanné: “Due to the good potentials and hard-working young men in Iran, the contract of developing Phase 11 of South Pars is not only an economic one, but also a scientific, technological and management cooperation”.

Total CEO: We seek a long-term cooperation with Iran

“The Islamic Republic of Iran and France have always had good relations and cooperation with each other,” he continued saying.

Referring to France’s position in economy and energy technology, he added: “The signing and execution of this contract will be a significant step in development of economic and technological cooperation between the two countries”.

Stating that the 11th administration has attempted to finalise the Joint Comprehensive Plan of Action (JCPOA) to clear the path for economic cooperation between major companies and Iran, the President said: “Fortunately, this political will from the Iranian side and among P5+1 countries paved the way for this agreements with Total”.

President also referred to his Europe and France visit after the signing of JCPOA, adding: “In Paris, there was a good political will among the authorities of both countries to develop cooperation and important agreements were signed between the two countries to deepen ties and cooperation”.

“It is our policy to cooperate with major companies such as Total,” said Dr Rouhani, adding: “Currently, projects in gas and oil worth roughly $200bn are ready to be invested on and major foreign companies can cooperate in these projects”.

“We must work hard to achieve peace and stability in the region serving economic progress and development of the region, because scientific and developmental cooperation can help us combat ignorance and poverty as the bedrocks of terrorism expansion,” he continued.

The President also expressed hope that with the new agreements and cooperation in the field of gas, oil and petrochemicals, Iran and France take considerable steps in developing ties.

During the meeting, the Chairman and CEO of France’s Total company Patrick Pouyanné also expressed happiness over meeting the President of the Islamic Republic of Iran and described the contract as a very important one, saying: “Today, we are very happy that we could finalise and execute the contract with the help of the authorities of the two countries”.

Stating that the JCPOA agreement has paved the way for further development of relations between European countries and Iran, he said: “We are optimistic about our cooperation with Iranian companies”.

“We seek a long-term cooperation with Iran,” continued Pouyanné.

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Director of National Petrochemical Company (NPC) made the remarks on the sidelines of the 13th International Iran Petrochemical Forum (IPF 2017) on Saturday morning in Tehran.

“The Iranian petchem industry was warmly welcomed following sanctions removal and talks have been held with credible international companies like Shell and Total,” she added.

Shah-Daei, while noting that four cooperation agreements have been so far inked, said “Iranian firms and holdings could take the emerged opportunity to attract technology and investment to the country.”

The official said the foreign parties were conducting technical analysis in order to determine the precise amount of investment; “the petrochemical industry requires large volumes of investments hence the need to rely on foreign financers.”

NPC managing director went on to stress that the JCPOA paved the path for cooperation between Iranian and foreign firms as evidenced by increased presence of foreign parties inside the country.

Marzieh Shah-Daei, while referring to the need for 40 billion dollars of financial resources for investment in new petchem projects, enumerated major advantages of the Iranian industry including favorable geographical location, low production costs as well as feedstock diversity.

On resolving banking issues, she maintained that foreign firms had agreed to launch cooperation with banks in a bid to prepare grounds for guaranteed investment.

NPC head later emphasized that priority was given to projects which consume natural gas and help complete the production chain.

Production volume of the Iranian petrochemical industry has reached 62 million tons while the figure is expected to hit 72 million tons with inauguration of seven new complexes by the end of the current Iranian calendar year (to end March 21, 2018).

Last year, Iran deployed 21 million tons of petrochemical products worth 9.4 billion dollars to international markets.

National Petrochemical Company (NPC) of Iran is holding its 13th International Iran Petrochemical Forum (IPF 2017) with collaboration of Iranian Inc. for Contemporary International Conferences & Fairs (IICIC), on 22-23 April 2017 at IRIB Int’l Conference Center in Tehran, Iran.

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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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Ethane remains as one of the world’s most strategic gas products which marks the main feedstock for petrochemical industries in various countries. A boost in ethane production and its conversion into various polymer and petrochemical products not only will lower raw sales but also will yield high value-added products usable in various industries.

Over the past two decades of development in South Pars joint field, he main focus has been always placed on recovering more natural gas and gas condensate as two main products to the extent that no ethane output has been envisaged for Phases 1, 2, 3, 6, 7 or 8.

Low ethane production figures in South Pars led to several difficulties in supplying feedstock to the country’s petchem industries as the rise in ethane-based units in Assalouyeh, an unofficial quota has been defined for balanced supply of feedstock to the petrochemical industry.

Presently, Iran’s ethane consumption capacity has mounted to about 5.250 million tons per year while the production figure for the strategic gas feedstock stood at only about three million tons.

On the other hand, the consumption figure for ethane is expected to experience a 4-4.1-million-ton rise and reach a total of nine million tons per year once ongoing petrochemical projects come on stream.

Nevertheless, implementation of South Pars Phases 17, 18, 19, 20 and 21 by early April will add three million tons to Iran’s ethane output capacity. In simple terms, full operation of the five new phases will double the country’s ethane production giving a total of six million tons per year.

With the upsurge in ethane output, the quote system will be canceled in the petrochemical industry as demands of domestic manufacturers will be fully supplied, a measure which will in turn lead to increased output of downstream products like a variety of light and heavy linear polyethylene, propylene and polypropylene among the others.

Moreover, in time with the countdown for operation of five new South Pars phases and, Iran will also outshine Qatar and Saudi Arabia, as two traditional rivals, in production of ethane.

Meanwhile, it has been anticipated that full implementation of the remaining phases in the joint field, including Phases 13, 14, 22, 23 and 24, will add another three million tons to the country’s ethane production capacity in which case Iran will turn into one of the largest ethane producers both in the Middle East and even in the world.

The rise in ethane production from South Pars field is expected to increase the country’s petrochemical and polymer production by 10 to 20 per cent.

Over the past four years, the US has turned into one of the largest producers of ethane by relying on unconventional resources called shale gas. Development of Panama Canal has also turned America into the top exporter of ethane in the world.

Some market analysts belive that the rise in America’s ethane output remains as a threat to major manufacturers of petrochemical products in the Middle East like Iran, Saudi Arabi and Qatar.

Yet, it seems that the rise in exports of American ethane will exert no effect on development of the Iranian petrochemical industry as Iran can outweigh the North American rival for at least a 10-year period given the uplift in production of the strategic gas product.

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Once the third train of the phase 20&21 refinery comes online, all the gas recovered from the phases will be processed at the facility for injection into the national gas trunk-line.
The second train o the refinery will come online within the next few months, Ebadi said.

Phase 20 and 21 of the South Pars are being developed for production of 50 mcm/d of sweet gas as well as 75,000 b/d of gas condensate, 400 tons of sulfur and 1.5 million tons of liquefied petroleum gas and a million tons of ethane per annul.

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