oil companies from across the globe are preparing themselves to win oil
projects in Iran now that the country is not under sanctions, 17 Iranian
exploration and production (E&P) companies have teamed up to share
experience in oil projects and increase their involvement in Iran's petroleum
industry projects which are coveted thanks to Iran's historic nuclear accord,
dubbed the Joint Comprehensive Plan of Action (JCPOA).
Society of Iranian E&P Companies held a gathering in Tehran to allow
Iranian firms examine methods of financing for implementing oil projects and
dealing with risks.
Mir-Moezzi, head of the Society, highlighted financing challenges and high
risks for Iranian E&P companies, saying: "Iranian companies do not
have any record of activity in E&P field. Furthermore, carrying out
projects in Iran is high-risk. All these factors give rise to financing
said that one solution for countering the challenge of financing was to launch
an investment fund replenished with Iranian currency. "Through this
action, the obstacles to financing may be contained. Of course, that requires
support from the Ministry of Petroleum and Ministry of Economy and cooperation
of Central Bank of Iran," Mir-Moezzi, a former managing director of
National Iranian Oil Company, said.
Hajihosseinnejad, E&P director at Ghadir Investment Company, said financing
was the most important challenge faced by Iranian E&P companies.
the exorbitant capital needed for the development of oil and gas reservoirs and
numerous obstacles in the way of financing, including restrictions and weakness
in the country's banking network in granting facilities, it is highly important
to adopt new approaches for providing capital," he added.
is the first time in the history of Iran's petroleum industry that Iranian
companies are cleared for E&P activities.
whereas Iranian companies have no experience of E&P projects, the Society
was established in a self-motivated way to help them learn more about business.
The Society plans to meet every month.
seventeen members of the Society, which were cleared by Iran's Ministry of
Petroleum are as follows:
Oil Industries Engineering and Construction Company (OIEC), Dana Energy,
Petroiran Development Company (PEDCO), Iran Power Plant Projects Management Co.
(MAPNA), Khatam al-Anbia Construction Base, Industrial Development and
Renovation Organization (IDRO), Executive Committee to Follow Up Imam
Khomeini's Directive, Ghadir Investment Company, Pasargad Energy Development
Company, Petrogohar Farasahel Kish Co., Iranian Offshore Engineering and
Construction Company (IOEC), Kayson, Iran Ofogh Industrial Development Company
(IOID), Pars Petro Zagros Engineering & Services Co. (PPZ), Global Petro
Tech Kish (GPTKish) and North Drilling Company.
Output Totals 4mn Barrels
Mohammadi, CEO of OIEC, spoke about Azar oil field, saying its output had been
stabilized at 30,000 b/d.
added that production from Azar field totaled 4 million barrels.
is estimated to hold around 4 billion barrels of oil in place, but Mohammadi
said new studies put the figure much higher.
added that Azar oil field was planned to supply 65,000 b/d in the first phase
of development, which would reach 100,000 b/d in the second phase.
oil field, one of the hardest and the most complicated hydrocarbon fields in
Iran and the world, lies in Anaran Block along the Iran-Iraq border, more
specifically between the cities of Mehran and Dehloran in Ilam Province.
expressed hope that development of Azar would pick up speed under an Iran
Petroleum Contract deal.
of Azar oil field, which is shared by Iran and Qatar, was awarded in 2011 to a
consortium of Oil Pension Investment Company (OPIC) and OIEC.
Azar started production
last March at a rate of 15,000 b/d, which doubled two months later.
Courtesy of Iran Petroleum