of upstream petroleum industry contracts, challenges to investment and
financing upstream projects and geostrategic aspects of Iran's oil gas
industry, management of oil and gas projects and optimization of drilling
operations and bolstering drilling services were among main topics discussed by
experts from all around the world.
of the National Iranian Oil Company Ali Kardor, in opening remarks to the
high-profile event, said a tender bid was planned to be held for the
development of North Azadegan oil field in southwestern Iran.
technical groups have been involved in the negotiations about Iran's new oil
contracts. We have been slow in this regard, but we hope to sign several
agreements in the new calendar year which started on March 21", Kardor
highlighted the NIOC's policy of outsourcing and monitoring role, saying:
"Such policies as the awarding of NGL, electricity generation, and water
desalination projects will continue."
revealed that the tender bid for the North Azadegan field would be in line with
the policy of outsourcing, saying: "The agreement in effect is short-term,
but a longer-term plan is on the agenda."
also announced plans for establishing a project fund to finance oil production
and preservation projects. "Selling unit shares and bonds and financing by
tapping the National Development Fund of Iran (NDFI) are among options for
financing these projects," said Kardor.
people can buy unit shares to invest in [project] funds, while EPC and E&P
companies may allocate fund to buying unit shares," he added.
referred to plans for selling bonds, saying: "Arrangements have been made
to fully hedge risks of foreign exchange rate fluctuations."
deputy minister of petroleum for international affairs and commerce,
Amir-Hossein Zamani-Nia, told the inaugural that Iran had managed to receive
its oil money in the aftermath of the implementation of its historic nuclear
agreement with six world powers, dubbed the Joint Comprehensive Plan of Action
investment in petroleum industry and foreign investment are interdependent and
Iran's private sector should become active in terms of investment in oil
industry," he said.
that Iran's petroleum industry became independent and made progress following
the 1979 Islamic Revolution, Zamani-Nia said: "Iran's oil production is
not on part with the level of its reserves, which has politically motivated
said that the JCPOA resolved some challenges of Iran's petroleum industry,
specifically selling crude oil.
are now receiving our oil revenue," he said, adding that another
achievement of the JCPOA was the facilitation of purchasing equipment for the
said there were still some banking problems which were not related to the
JCPOA. "They are related to other issues whose resolution would help the
petroleum industry experience dynamism."
Oil Output Set to Rise
his part, Deputy CEO of NIOC Gholam-Reza Manouchehri said Iran's oil production
capacity would increase by 150,000 b/d after the implementation of the three
draft agreements referred to by Kardor.
on the sidelines of the conference, Manouchehri, who handles development and
engineering affairs at NIOC, said: "The studies conducted on Iranian
fields show that recovery from these reservoirs could be raised by 10%."
deputy petroleum minister for research and technology, Habibollah Bitaraf,
touched on the Ministry of Petroleum's plans for developing oil and gas fields
under Engineering, Procurement, and Construction (EPC) contracts, saying:
"Using domestic potential and transfer of technology for the
implementation of these plans are underscored. To that end, we can benefit from
the services of domestic and foreign E&P companies."
the EPC contracts, the agreement is signed between the NIOC on one side and
domestic and foreign companies on the other, Bitaraf said, adding that the
share of each company in the project would depend on its capabilities.
to Bitaraf, Iranian companies and their foreign partners would have to respect
certain obligations with regard to the purchase of commodities and equipment
and domestic manufacturing unless domestic manufacturing of items and equipment
turns out to be impossible.
all levels envisaged for domestic and foreign companies, the issue of transfer
of technology is highlighted by both the Iranian and foreign sides and this
issue is among the major considerations of these contracts," he said.
said another development plan by the Ministry of Petroleum was to renovate
equipment for the upstream sector.
of our equipment is aged over 50, causing many challenges to the preservation
of the current level of output. For this sector, we have made necessary
multi-phase arrangements with focus upon utilizing domestic potential and
supporting and bolstering domestic potentialities," he added.
said conducting comprehensive on oil and gas fields was another development
plan by the Iranian Ministry of Petroleum, adding: "These studies have
been assigned to ranked companies and consultants to handle the process of
studying new fields and reservoirs by applying new technologies."
referred to assessment made by qualified companies for enhanced recovery within
the framework of EPC contracts, saying: "Furthermore within the framework
of these projects, 30 projects worth around $6 billion are envisaged to be
outsourced within the framework of three contracts worth $50 to $300 million.
two-day event was attended by representatives of prominent oil companies that
are examining opportunities for investment in Iran's petroleum industry.
the following pages, the main panel discussions will be briefly reviewed.
Courtesy of Iran Petroleum