15 October 2017 - 10:48
  • News Code: 279042
Iran E&P Firms Brace for Post-Sanctions Business

TEHRAN, (Shana) -- Major oil companies from across the globe are preparing themselves to win oil projects in Iran now that the country is not under sanctions,...


Major 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).

The 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.

Mehdi 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 problems."

He 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.

Abdorreza Hajihosseinnejad, E&P director at Ghadir Investment Company, said financing was the most important challenge faced by Iranian E&P companies.

"Given 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.

It is the first time in the history of Iran's petroleum industry that Iranian companies are cleared for E&P activities.

But 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.

The seventeen members of the Society, which were cleared by Iran's Ministry of Petroleum are as follows:

Petropars, 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.

Azar Output Totals 4mn Barrels

Behzad Mohammadi, CEO of OIEC, spoke about Azar oil field, saying its output had been stabilized at 30,000 b/d.

He added that production from Azar field totaled 4 million barrels.

Azar is estimated to hold around 4 billion barrels of oil in place, but Mohammadi said new studies put the figure much higher.

He 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.

Azar 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.

Mohammadi expressed hope that development of Azar would pick up speed under an Iran Petroleum Contract deal.

Development 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

News Code 279042

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