unique standing of Iran in terms of enjoyment of hydrocarbon reserves was
emphasized. So far, half of Iran's hydrocarbon reserves has been depleted and
fresh investment has been planned.
panel discussions were held on the second day of the event; two on upstream sector
and the other on petrochemical sector. The first panel on upstream oil sector
was presided over by Gholam-Reza Manouchehri, deputy CEO of NIOC for
development and engineering.
referred to Iran's hydrocarbon reserves, saying: "Iran is among countries
with huge volume of hydrocarbon reserves. It has potential reserves which could
said Minister of Petroleum Bijan Zangeneh had instructed studying all
reservoirs in the country.
studies could lead to increasing the volume of in-place hydrocarbon reserves in
Iran. Domestic consultants will be hired while foreign consultants will also
contribute so that the ground would be paved for a jump in the petroleum
industry," said Manouchehri.
enumerated the advantages of investment in Iran as rich hydrocarbon reserves,
security, transportation infrastructure, formation of exploration and
production (E&P) companies, activity of different oil service companies as
well as Iranian oil experts.
said Iran could still produce oil and gas for 100 and 166 years respectively,
adding: "It seems that in light of production from major unconventional
reserves in the world, growth in renewable energies and oil
production-consumption curve, we should count on oil at $40 to $60 a barrel for
four to five years. Therefore, we have to adapt our oil economy and production
economy with this figure."
advised NIOC subsidiaries and development companies to manage their costs in a
bid to have more profitability.
went on to highlight the establishment of working committees to negotiate Iran
Petroleum Contract (IPC) deals and follow up on the development of fields.
Output Could Rise 3mb/d
also said the petroleum industry has firm will to develop gas sector.
policy yielded good results, placing Iran in very favorable conditions in terms
of gas production. Currently, gas has a 70% share in Iran's energy mix,"
present we have decided to make major investments in the oil sector. To that
end, we focus upon giant and heavy crude oil reserves in southern Iran,"
said Manouchehri. "Recent studies conducted by foreign companies show that
Iran's oil production capacity could rise by 3 m/d."
underlined financing and application of cutting edge technologies as Iran's
major expectations from the presence of foreign companies in the development of
Iranian oil and gas field.
expect these companies to make necessary investment shortly, so that we can
reach the designed plateaus in the shortest possible time," said
to the complicated nature of Iranian reservoirs and the necessity of applying
sophisticated technology, he expressed hope that foreign companies would be
able to apply the latest technological achievements for developing reservoirs
said accumulated production and reaching maximum recovery are important factors
contributing to the expiry of contracts, noting that reduction of costs would
be a key parameter in field development.
said that NIOC's priorities for development included jointly owned fields,
particularly those with the possibility of migration, and high-pressure gas
secondary priority goes to reservoirs which are geologically more sophisticated
and have a lower recovery rate," added Manouchehri.
Reservoirs at Half
Zobeidi, director of consolidated planning at NIOC, provided detailed figures
about Iran's hydrocarbon reserves and production capacity. Like others, he
highlighted the necessity of enhanced recovery from oil reservoirs.
said Iran was home to 184 fields, comprising 390 reservoirs, adding that 171
reservoirs had already been developed or were under development.
said Iran holds more than 712 billion barrels of oil in place, 101 billion
barrels of which is recoverable with an average recovery rate of 24.6%. He said
that application of enhanced oil recovery (EOR) methods had contributed to 4.4%
also said the recovery rate for gas condensate and liquids was 51% and for gas
total, he said, Iran's hydrocarbon recovery rate stands at around 40%.
said a 35% recovery rate was an acceptable level for oil fields.
"Therefore, the oil recovery rate in Iran is currently 10% below the
desired rate and this 10% would mean a 70-billion-barrel extra recovery."
said that EOR as well as improved oil recovery (IOR) methods would help
increase oil recovery by 5 to 15%.
Ranked 3rd in Oil/Gas Exploration Capacity
Hendi, NIOC exploration directorate chief, cited data from the United States
Geological Survey (USGC), saying Iran was ranked the third in terms of
exploration capacity. Iraq and Russia occupy the top positions.
referred to the downward trend in oil consumption in the world, while gas has
been on an upward trend, saying that demand for oil and gas would outstrip
supply in the future.
oil and gas producers are required to take steps to ally such a concern and
guarantee energy security. To that effect, a win-win relationship between
producers and consumers would be instrumental," he said.
reiterated the need for more exploration in coming years in order to bridge the
gap between energy supply and demand in the world.
said that Iran has not only huge conventional hydrocarbon reserves, but also
enjoys good potential in shale oil and gas."
present, extraction from unconventional reservoirs is not the NIOC priority;
however, if conditions are ready for recovery from these deposits Iran will be
enjoying high potential," he added.
also said that the cases of 10 exploration blocks, out of a total of 14, had
been finalized. "By attracting 1.2 billion in investment, we have managed
to add 1.6 billion barrels of oil and 16.6 tcf of gas to the country's in-place
oil and gas reserves."
expressed hope that tender bids would be soon held for exploration blocks in
plan to conduct joint studies with foreign companies in exploration
sector," said Hendi.
of Iran Petroleum