The existence of huge oil and gas reserves in Iran and the capabilities of Iran's oil industry have made the country one of the main players in the field of world energy supply, which cannot be easily removed from the world markets. According to Mohsen Khojasteh-Mehr, CEO of National Iranian Oil Company (NIOC), Iran has about 157 billion barrels of recoverable oil and 33 tcm of recoverable gas reserves, totaling 1,200 billion barrels of oil equivalent (boe).

Therefore, Iran is always considered one of the important players in the field of energy supply of the world, and its active energy diplomacy in recent months confirms it.

Currently, Iran’s plan in the field of energy diplomacy pertains to significant and active presence in the region, Central Asian and Latin American countries, which has been welcomed by these countries.

Gas Swap

The conclusion of a gas swap agreement between Iran, Turkmenistan and Azerbaijan with an annual figure of 1.5 to 2 bcm of gas on the sidelines of the 15th Economic Cooperation Organization (ECO) summit and its implementation from the beginning of 2022, Iran's relationship with Turkmenistan and Azerbaijan into a new phase and caused a thaw in ties between Iran and Turkmenistan. But Iran-Turkmenistan ties were not limited to this agreement as the two countries also signed a memorandum of understanding on the export of technical and engineering services and petroleum products. Furthermore, during Javad Owji’s visit to Azerbaijan, a memorandum was signed for doubling the volume of gas swap via Iran.

Ties with LatAm Nations

The climax of Iran's energy diplomacy could be considered in establishing relations with Latin American countries. Venezuela, Cuba and Nicaragua are the countries where Minister Owji discussed with their highest executive and senior officials, ways to expand the borders of energy diplomacy.

Signing four memorandums and two contracts with Latin American countries in the field of development and production of oil and gas fields, upgrade and modernization of refineries, issuing technical and engineering services and technology transfer and development of export markets for crude oil, gas condensates and petroleum products are among the most important programs of the Petroleum Ministry. Oil is considered in the establishment of this diplomacy, which has provided Iran with new export markets in that region of the world.

Hengam Development

Minister Owji visited Oman in May. He met with Omani ministers of foreign affairs and oil to discuss export of technical and engineering services in the oil and gas industry, marketing petroleum and petrochemical products, as well as setting up a joint committee to develop the Hengam field which they share.

Iraq Gas Debt Collected

However, the most important event in the activation of Iran's energy diplomacy could be considered the collection of $1.6 billion in arrears owed by Iraq to Iran for gas delivery to its western neighbor. In the last quarter, compared to the same period last year, Iran's gas exports to neighboring countries grew by 43% in volume, while during the same period, collection of liabilities from this export has increased by more than 90% compared to the same period last year. According to Owji, the sustainability of gas exports to Iraq has always been emphasized by the authorities of the Islamic Republic of Iran, therefore the increase in gas exports to this country will be assessed in the future plans of the Petroleum Ministry.

Ties with Russia

Among Iran's plans to expand its energy diplomacy, we may mention the strategic relationship with Russia, which is very important for both countries. According to experts, the relationship between Iran and Russia is deep and strategic, which could be greatly developed, while the top officials of the two countries have repeatedly expressed their interest in developing relations, which can emerge and develop especially in the field of energy, according to such an approach. In early June this year, the Petroleum Ministry hosted a high-ranking Russian delegation headed by Alexander Novak, Russia’s deputy prime minister.

The two countries emphasized expansion of oil cooperation and Minister Owji said: “We intend to raise the level of trade relations with Russia in various economic sectors to $40 billion per year in the 13th administration. The achievement of the meeting between the high-ranking delegation of Iran and Russia was the signing of three cooperation documents including a joint statement, a memorandum of understanding between the National Petrochemical Company (NPC) of Iran and Russia’s Union of Chemical Industries, and the 12th protocol of the meeting of the working group on transportation cooperation between Islamic Republic of Iran and Russian Federation.

International Fora

The presence and active participation of the Petroleum Ministry in international fora, organizations and conferences in the field of energy, especially OPEC and the Gas Exporting Countries Forum (GECF), and consultation and interaction with high-ranking officials of OPEC member countries and gas exporting countries, as well as Armenian government officials, managers of Chinese companies and some ambassadors are considered to advance the goals of the oil industry, including the plans of the Petroleum Ministry to expand energy diplomacy in the recent period.

Iran shares land and maritime borders with a total of 15 countries, which has sought opportunities and valuable fields for this country that can be developed day by day, and hence the policy of deepening relations with neighbors and countries in the region in opening new fields and new export markets for this country is very effective.

Courtesy of Iran Petroleum