Q: Please explain about the most important existing resources and energy reserves on the Qeshm Island? A: The most important energy reserves on the island include two independent gas fields of Gavarzin and Salakh. Since gas produced by Salakh field is sour, it has not yet been exploited and we have given priority to Gavarzin field. Its gas will reach Bandar Abbas through pipeline. Q: What have you done to develop investment and attract industries to take advantage of existing gas reserves? A: Based on an agreement, the National Iranian Gas Company is ready to supply 3 million cu. m. gas of which 1.8 million cu. m. will be produced by Gavarzin field and 1.2 million cu. m. will be yielded by Sarkhoun gas field. Consultant for the pipeline has been chosen and the route of pipes has been defined. The cost has been appraised at about 2.5 billion rials which will be supplied by Qeshm Free Zone. We have negotiated with department of integrative planning at the National Iranian Gas Company to invest in laying the pipeline. Q: How much gas will be supplied to Qeshm? A: A 12 inch pipeline with a length of 107 km will run from Sirri to Doust Kouh region in Qeshm to continue toward Gavarzin as a 20 inch line before reaching Kaveh, Tavalla and Suzan areas. Those pipelines will be about 102 km long and the whole pipeline will be able to supply 5 million cu. m. gas to consumption locations. Q: When building the pipeline will start? A: All needed steps have been taken for pipe laying and executive steps will soon start after receiving enough finance. Q: When gas is to be distributed in Qeshm? A: Based on current projections, gas distribution in the island will be over next year and investors that depend on gas for energy will be able to avail of it since the beginning of the Iranian year 1386 (2007-08). Q: Has National Iranian Oil Company made any plans for establishing oil terminals in Qeshm Island? A: Studies have been started for developing oil and gas condensate refinery of Bandar Abbas, providing necessary conditions for export of refinery products and import of fuel for domestic consumption as well as supply and export of various types of ship fuel in addition to storing 20 million barrels oil by Petroleum Engineering and Construction Company. Q: What executive steps have been taken in this regard? A: Petroleum Engineering and Construction Company has signed a contract with the British Foster Wiler company to conduct studies in such fields as geology, hydrography, seismology and environment as well as reporting on docks and CPMs and undersea pipelines. Q: What is the main goal of your studies? A: Supplying needed feedstock to Bandar Abbas oil refinery, exporting refinery products, importing fuel (diesel and gasoline) for domestic use, supply and export of ship fuel and storing 20 million barrels crude oil as well as providing other services in the field of oil and energy are our main goals. Q: What measures have been taken in this regard? A: Petroleum Engineering and construction Company is in charge of the project and has decided to launch it during the current year an implement it in maximum eight years. About 1,000 hectares land to north and south of the island have been allocated to the purpose. Undersea pipes as well as a report on designing reservoirs and import-export system, has been finished. Oil Investment Company is working on the first phase of the project and is responsible for supplying needed feedstock to Bandar Abbas refinery. Q: What are your plans for building a refinery on the island? A: We are planning to build a number of refineries including Nik Qeshm gas condensate refinery with the capacity of 120,000 barrels per day. Investment will be made by the private sector with partners being Sadid Industrial Group, HEPCO, SADRA and Soroush Yaran Investment Company in addition to an affiliate of Qeshm Free Zone. Q: How much money will be invested in the refinery? How far executive operations have advanced thus far? A: About 560 million dollars will be invested in the refinery. Economic and technical studies have been carried out by domestic and foreign companies and Ministry of Petroleum has issue permit on feedstock to be supplied by South Pars phases 15 and 16. Also, 100 hectares land has been allocated to the purpose and finance is expected to finish in a couple of months. Q: Are there other plans for building a refinery in Qeshm? A: Building another refinery by Oil Pension Fund with the capacity of 360,000 barrels per day and in cooperation with a Chinese group through investing 2 billion dollars is going through final studies and is to be finished in three years. Q: In view of potentials existing in Qeshm Island, have you thought about establishment of energy-intensive industries? A: We have taken steps for attracting investments in energy-intensive industries on Qeshm island including establishing Qeshm Energy Company which is responsible for attracting investments in downstream petrochemical, oil, gas and energy-intensive industries. The company was established last year through investment of a Swiss company and a number of European and domestic companies. We are negotiating investment in some energy-intensive project. In addition to Cellulose Industries Investment Company, we have taken steps for establishing another company, which will be announced in two months. Also, Qeshm Cement Company has been established through investment of private sector from the United Arab Emirates with the capacity of 9,000 tons. The first phase of the plant will produce 3,500 tons cement per day.