28 May 2019 - 14:45
  • News Code: 289347
Europe SMEs Ready to Invest in Iran Oil

TEHRAN (Shana) -- Exhibitions all across the globe provide a platform for every nation to show off its industrial potential. Therefore, putting industrial capabilities on display could stimulate competitiveness among producers. Iran’s petroleum industry is no exception to this rule.

The 15th Kish International Energy Exhibition provided a good venue for Iran’s industrial and technological achievements to be showed off for the purpose of providing the ground for interaction between Iran and the world. Some outstanding features of this round of the Kish energy exhibition included competition between Iranian and foreign companies in attracting visitors. The reason for such rivalry stems from the fact that domestic companies have improved their own conditions and been empowered due to the previous round of tough sanctions.

It may be premature to make an assessment of the achievements of the 15th exhibition. However, Iranian companies exhibited their latest scientific and technical achievements and put on display their best-in-class equipment to take maximum advantage of this oil festival.

The Kish exhibition, held on 18,000 square meters of land, was designed to introduce opportunities for investment and to put on exhibit the achievements of manufacturers and producers involved in the oil, gas, petrochemical, water and electricity, and renewable energy sectors.

A total of 135 Iranian and foreign companies attended the exhibition. Twelve countries – Belgium, China, Italy, Japan, Britain, the Czech Republic, the Netherlands, United Arab Emirates, Russia, South Korea and the United States – were represented.

On the sidelines of the Kish exhibition, three panel discussions were held on the issues of investment in the energy sector, models of cooperation with Iranian and foreign SMEs, facilities for knowledge-based companies in the energy sector, economic analysis of Iran and the world and presenting free zone strategies. Iranian manufacturers, industrialists and knowledge-based companies were in attendance.

Kish, Center of Talks with Foreign Firms

Given the significance of the Kish energy exhibition among industrialists and oil and gas companies in the region and the world, the Iranian government intends to transform Kish Island into the center of negotiations with foreign companies.

Gholam-Hossein Mozaffari, CEO of Kish Free Zone Organization, said planning was under way to transform the island into a venue of negotiations between Iranian state-run companies and foreign parties.

“Free zones, particularly Kish Island, can link Iran’s economy with the world,” he said.

Touching on Iran’s petroleum industry challenges, Mozaffari said: “We are so delighted that under such conditions, 140 companies were present at the exhibition. Fortunately these companies are capable and strong.”

“In Kish, there is potential for interaction and joint cooperation between Iranian and foreign companies. That can be a starting point for the implementation of projects,” he added.

Mozaffari also referred to the Energy Exchange, saying: “The Energy Exchange could provide a good opportunity for leading oil companies to offer their shares on the floor of international exchange. That could give rise to a good development in this sector. We hope that the Kish Energy Exchange would be launched soon.”

He said an MOU had been signed with the Office of Vice President for Scientific Affairs about knowledge-based companies.

“There is suitable ground for these companies not only in Kish Free Zone, but also all across the country. We have located buildings for the companies that have started their work there,” he added.

Mozaffari said many state-run companies used to hold meetings with foreign parties in Istanbul.

“We had a meeting on that issue. It was agreed in the meeting that state-run companies be notified of a decision for such talks to be held in Kish,” he said. “Traveling to Kish is easy and necessary facilities are ready there. We have so far been neglectful of this issue, but we hope that Kish would be determined as the center of such talks.”

“All of us want to be connected to the global economy. Free zones and particularly Kish Island can be the link for such connection,” Mozaffari said.

114 Foreign Firms Ready to Work in Iran

Reza Padidar, head of Energy Committee of Tehran Chamber of Commerce, said 114 foreign SMEs had registered to operate projects in Iran.

“We plan to benefit from their potential in technology transfer and partnership in investment projects,” he said.

“Over the past nine months, 57% of national revenue has been produced from oil and hydrocarbon products and it can be concluded that Iran’s economy is oil-dominated. Therefore, the energy sector needs government support,” he added.

“We identified European SMEs that were willing to invest in Iran. We plan to invite them to Iran later this year in order to familiarize them with projects and potentialities in Iran in a bid to prepare the ground for joint development projects,” said Padidar.

Khuzestan to Launch Petchem Sale

Ali Mazaheri, CEO of Petrochemical KALA Company (PKC), announced the startup of the largest industrial shopping center for Iranian petrochemical commodities in Khuzestan Province.

He said that PKC had signed an agreement with the Society of Iranian Petroleum Industry Equipment Manufacturers (SIPIEM) for the latter to account for the domestic manufacturing of items needed at petrochemical plants and their supply in the shortest possible time.

Mazaheri said the industrial shopping center would be launched in Mahshahr, a strategic zone known as the heart of Iran’s petrochemical industry.

The KPC-SIPIEM agreement would end Iran’s dependence on imports and empower domestic manufacturers to supply national needs.

“Effective steps have so far been taken for the implementation of the project, including warehousing and transportation. However, effective interaction with manufacturers is essential,” said Mazaheri.

“KPC has always supplied the needs of petrochemical manufacturers and the company has so far identified the mostly consumed items of petrochemical plants,” he said.

Mazaheri expressed hope that about 80 main products would be stockpiled in the warehouses in one year.

Petrochemical plants depend on imports for their raw materials. That is while due to international sanctions and restrictions, the purchase of equipment from abroad has become problematic. Prior to the imposition of the sanctions, KPC was an importer of spare parts from European companies. But now thanks to reserve engineering, it is possible to develop many of such spare parts.

110 European SMEs Eye Iran Oil

Reza Khayamian, CEO of SIPIEM, said 110 European SMEs were ready to operate oil and gas projects in Iran.

“The Europeans’ participation in the petroleum industry development projects needs the full launch of the special purpose vehicle (SPV) between Iran and Europe,” he said.

Referring to US unlawful and unilateral sanctions on Iran, he said: “Definitely, major oil companies like Shell, Total and BP, whose stocks are held by American companies, could not easily work in Iran amid US sanctions. Therefore, Iran’s oil and gas industry should not depend on major international companies.”

“The best thing we can currently do and for which a proposal has been submitted to the presidential office is to let Iranian and European SMEs jointly operate oil and gas projects,” Khayamian said.

“Talks have already been held with the European Union’s Energy Commissioner. Once SVP has been launched, European SMEs with no interest in the US would be ready to invest in Iran’s oil and gas projects. Big companies can place orders with SMEs and we can directly engage with small-sized companies,” he added.

Courtesy of Iran Petroleum

News Code 289347

Your Comment

You are replying to: .
9 + 5 =