Outlining the most important priorities of the Iranian oil industry in the current calendar year, which is entitled as the year of “Production Leap” by the supreme leader of the Islamic Revolution, Mr. Zangeneh said the first well in the project would be spudded during the year.

NIOC had struck a deal with a consortium of France’s Total, China’s CNPC International and Petropars to develop the project. However, after the Trump Administration withdrew from the Obama-era 2015 Iran nuclear deal and re-imposed sanctions on Iran’s oil, banking and transportation sectors in November 2018, the French and Chinese giants pulled out of the project.

Addressing the 17th meeting of the Production Leap Leadership Council, held on Tuesday, the official said that sales volume to downstream petrochemical units had diminished by 40% year-on-year, indicating that these units are inactive and must resume their productivity.

He noted that the petrochemical industry's pioneering projects were defined in four chains: methanol, propylene, ethylene and benzene. "Of course, the private sector is responsible for investing in these projects, but it needs to be encouraged and stimulated to implement these projects," he said.

Zangeneh continued: "For this purpose, a fund should be established to support the development of pioneering and downstream petrochemical projects such like the Oil Innovation and Research Fund (if necessary, the government should also help) with such instruments as lower interest rates, market guarantees, license guarantees and so on."

Iran Natural Gas Production Capacity to Cross 1bcmd

Also speaking to reporters on the sidelines of the meeting, the official said production of gas from the joint South Pars gas field would reach 750 million cubic meters per day in the current calendar year bringing the country’s total natural gas production capacity to 1 billion cubic meters per day.

He further underlined the development of Goreh-Jask oil pipeline as one of the current year’s top priorities for the Iranian Ministry of Petroleum, adding by completion of the project, it will be possible to transfer crude oil from Goreh oil terminal in Bushehr Province to Jask region on the Coast of Oman Sea.

The plan is being carried out fully by Iranian developers, he stressed.

The Iranian Minister of Petroleum went on to add that 17 petrochemical projects were to be launched in the current calendar year. The units, once operational, will yield $6 billion worth of products and add 10 million tons to the country’s annual petrochemical production capacity.

Another project for the current year will be development of Phase 4 of Bandar Abbas Refinery, Zangeneh said.

He also added that by the end of the Rouhani tenure, the contracts for developing all the country’s joint oil and gas fields would be finalized and their development projects would be commenced. “Activities are ongoing in such joint oil and gas fields as West Karoon, Azar, West Paydar and South Pars.”