27 August 2015 - 17:59
  • News Code: 245974
Iran Poised to Become 2nd Largest OPEC Producer

TEHRAN August 27 (Shana)--Iranian Minister of Petroleum Bijan Zangeneh says all the country's oilfields will come online seven or eight months after sanctions relief, reemerging the country as the "second largest OPEC producer."

"The chief goal of the sanctions was to paralyze Iran's energy sector which made everything, from the sale of crude oil to import of equipment, difficult for the oil industry [in Iran]," Zangeneh said during an on-air interview broadcast from national TV on Wednesday night to review petroleum ministry's achievements under Rouhani administration. Hassan Rouhani was sworn in as new Iranian president in 2013. 

 South Pars 

He said when he took office as Iranian minister of petroleum, 17 South Pars phases were being operated at the same time with none reaching an encouraging result that could supply the required gas to the country. 

"Despite all the financial shortcomings, we pulled together contractors from across the country to complete and operate South Pars phases," he said. 

The official said phases 12, 15&16, and 17&18 of the supergiant South Pars gas field were prioritized for completion, and plans were made to add at least 100mcm/d of gas to the country's gas output by constructing 8 refining units by March 2015. 

"We managed to add 10 refining units during last [calendar] year (which ended March 2015) and raised the country's gas production capacity some 120mcm/d," he said.

South Pars is currently supplying 300mcm/d of gas, which equals 72% of Iran’s total gas consumption. Nearly 100mcm/d is projected to be added to South Pars gas production capacity while all 29 phases are expected to have been developed in three years.

Zangeneh added that phase 19 and then phase 20&21 are prioritized over other phases in the current calendar year. 

All South Pars phases, except for phase 14, will become operational by March 2017, he said. 

He further said 15 new South Pars phases with the capacity of 600mcm/d of natural gas and 1mb/d of condensate will come on-stream by mid-2017. 

Iran's South Pars Gas Recovery to Reach Qatar's in Two Years

He said South Pars phases are being operated with the aim of supplying the domestic need for natural gas as well as recovering as much gas from the field which Iran shares with Qatar as possible. 

"For the time being, Iran's gas recovery from South Pars is less than Qatar, but we are hopeful that our daily gas recovery will be equal to Qatar's recovery in two years," he said. 

4-Month Crude Exports 15% Up 

Iranian Minister of Petroleum Bijan Zangeneh said Iran's crude export during the first 4 months of the current calendar year grew 15% year-on-year. 

He said Iran has 60mb of stored condensate which has been recovered during natural gas recovery. 

He reiterated his remarks about Iran's readiness to add 500,000b/d to its oil exports one day after removal of the sanctions, and said another 500,000b/d will be added to the country's crude oil output by March 2016. 

"We cannot help raising our oil output; we regard the sanctions as a cruel policy [against us], and would add to our production and exports as soon as we can," he said. 

"We do not worry over oil prices; if we did so, we should have stopped production of oil; but we are not allowed, at any costs, to lose our historical share in the oil market." 

"Those who have usurped Iran's [market] and have made fortunes doing that must worry about the oil price slump," he said. "We have become hardened to living in harsh conditions and low prices; so we can keep going even with low prices, but we will not forgo our [market] share." 

"If we forgo our market share, we will have to fight for selling even 20,000 barrels in the market; therefore, we will strongly return to the market after the sanctions relief and will take back our share." 

Emergency OPEC Meeting

"In order for the prices to stabilize, the oil market and OPEC members must adjust their output," he added. 

He said Iran OKs an emergency OPEC meeting, but outcome of OPEC meetings must be endorsed by all members, "which I believe, some members do not favor high prices and intend to inflict damages to there members by low prices." 

"We wish to befriend all OPEC members and maintain cordial relations with them, but the market has its own levers anyway." 

"Within the next 7 or 8 months after the removal of sanctions, Iran will become the second largest OPEC producer, because in OPEC, the level of production and exports determines a country's power, therefore all OPEC members must cooperate with us." 

He argued that the imbalance between supply and demand in the market is the cause of the fluctuating and falling prices in the market. 

"Some OPEC members have called on non-OPEC producers to cooperate in balancing the prices, but as we have seen, they have not done so during the past year." 

West Karoun Oilfields 

Zangeneh underlined Azadegan, Yadavaran and Yaran oilfields as three major fields in the West Karoun region, saying Yadavaran oilfield is estimated to hold 31 billion barrels of oil in its reserves. 

Production from the field stands at 110,000b/d for the time being, while plans are underway to develop the field for production of 700,000b/d within the next three years, said Zangeneh. 

He said the field's output is expected to hit 260,000 by March 2016, saying all these plans have been envisaged by considering that the sanctions will remain in place against Iran. 

News Code 245974

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