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]]>Zanganeh told a televised interview, “We use different methods for financing and there is not the possibility for attraction of all the needed capital through contracts.”
On the contract for export of Iran’s LNG to Korea, Zanganeh said as for the LNG exports contract package it should be said that it should be the kind which would envision completion of the LNG factory and repayment of the costs to the contractor out of LNG extraction revenues. “Of course, the Koreans are not the only party in the contract, rather the Germans and Japanese are the other parties.”
He then pointed to the oil output of one to one and half a million barrels out of the new model of oil contracts.
The Minister said diversion of funds out of the domestic sources and the National Development Fund is also on agenda, though it should be born in mind that the fund sources are not unlimited and there are many volunteers for it.
Iran needs 70 billion dollars for the downstream sector development plans
“Securing necessary financial sources to attain the Sixth Five-Year Plan objectives, including 130 billion dollars, for the upstream and about 70 billion dollars for the downstream sector is a very difficult job,” he said.
Zanganeh commented on the latest condition of the Persian Gulf Star refinery and said for the time being, kerosene and gasoil are transferred in the refinery but high quality gasoline production at the refinery will start as early as 2017.
Sessions are regularly held to follow up the Persian Gulf Star refinery project and works are going on well, he added.
The minister said petrochemical revenues of Iran have now reached 25 billion dollars from one billion dollars in 1997.
He added that plans are underway to raise value of the petrochemical products by five billion dollars by end of this year (to end on March 20) to more than 30 billion dollars.
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]]>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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