Giving a report on the Oil Ministry’s performance during a visit President Seyyed Ebrahim Raeisi paid to the ministry on Monday, Owji said, “The Oil Ministry has given top priority to investment in key projects for maintaining and boosting oil and gas production, collecting flare gas, storing natural gas, exploring new oil and gas fields, increasing oil refining capacity, constructing refineries, promoting oil products’ quality, expanding petrochemical production capacity, and increasing gas processing capacity.”

Under the incumbent government, 132 partly-finished projects worth $28.5 billion, mainly in upstream and downstream sectors, were completed and put into operation, he added.

“We offered 50 new projects to encourage $47.5 billion investment and 182 projects valued at $76 billion on the whole with the aim of increasing output in the upstream and downstream sectors,” the minister elaborated.

Most of the projects left unfinished for years became operational under the incumbent administration, said Owji, referring to the construction of the refinery of Phase of the South Pars (SP) gas field, the launch of SP Phase 11, and the completion of new gas pipeline of SP Phase 16.

The country’s daily gas output is 50 million cubic meters (mcm) higher than that produced before the 13th administration took office, Owji continued.

Six contracts for joint fields development

Six contracts worth $14.5 billion were signed to develop joint oil and gas fields, mainly located at West Karoun region, including Azadegan and Yaran, stated the minister.

Most of Iran’s joint oil fields are onshore and shared with Iraq, pointed out Owji, adding his ministry has carried out necessary measures to develop joint offshore fields such as Forouzan oil field.

According to him, Forouzan field’s oil output, which stood at 24,000 bpd in August 2021, is now 30,000 bpd and will rise to 40,000 bpd by the end of summer 2025.

Forouzan oil field is located some 100 kilometers southwest of Iran’s Kharg Island on the maritime border between Iran and Saudi Arabia and is part of a larger reserve owned by Saudi Arabia and called Marjan.

$5.5b investment for APG collection

Owji said around 400,000 million cubic meters (mcm) of associated petroleum gas (APG) were gathered a day in 2011, adding the amount reached 2.3 mcm/d when the 13th administration took over while it stands at 11.5 mcm/d now and will soar to 18 mcm/d by the end of winter 2024.

He pledged that the volume of collected flare gas will rise to 32 mcm/d and 62 mcm/d in mid-March 2025 and 2026 by investing $5.5 billion in 54 projects.