Mustafayev who visited Tehran heading a high-ranking delegation met with Zanganeh to mainly discuss cooperation in oil and gas sectors, Shana reported.

Speaking in the meeting, Zanganeh stressed positive political and economic relations between the two countries, saying: “Iran-Azerbaijan relations have grown well in all fields over the recent years, mostly in the oil, gas and energy sectors and the development of joint fields in the Caspian Sea.”

“Although we have not yet been able to realize this cooperation (development of joint fields) due to external pressures imposed by sanctions, but according to the leaders of the two countries, it will be operational soon,” he said.

Mustafayev for his part emphasized the expansion of mutual relations between the two countries, and said: “I agree that our relations have developed in recent years, which was due to the political will of the presidents of the two countries.”

“The relations between the two countries have made significant progress in different fields, and they can be even further boosted by constructive talks,” he stated.

The official further pointed to oil and gas sectors as great areas for expansion of economic relations between the two neighbors, saying: “We have a long history in cooperation in the field of gas, and since 2004 the gas required by the Nakhchivan Autonomous Republic has been supplied by Iran, and we appreciate that.”

Mustafayev was accompanied by the head of the State Oil Company of the Azerbaijan Republic (SOCAR) and a number of officials and businessmen in his visit to Tehran.

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As reported, the memorandums of understanding (MOU) for Azadegan field studies were signed on Monday in a ceremony attended by Oil Minister Bijan Namdar Zanganeh, between the NIOC and five Iranian exploration and production companies.

The studies on the field will be conducted in three different sections, namely the southern, central, and northern areas.

The MOU for research on the northern part of the field was signed with Persia Oil And Gas Industry Development Company, the central part of the field was awarded to Petropars and PetroIran companies, while MOU for the studies on the southern part was signed with Pasargad Energy Development Company and Dana Energy Group.

Azadegan is Iran’s biggest joint oil field near the Iraqi border that covers an area of 1,500 square kilometers.

The field’s reservoir is estimated to contain 32 billion barrels of oil, and its development has so far been pursued in two sections, the Southern Azadegan and the Northern Azadegan.

Azadegan is one of the five major oilfields Iran shares with Iraq at the western part of Iran’s southwestern region of Karoun, known as West Karoun fields.

West Karoun holds great importance for the country’s oil industry since according to the latest studies, its in-situ deposit is estimated to be 67 billion barrels containing both light and heavy crude oils, and therefore it could have a big impact on Iran’s oil output increases in the future.

Having an estimated 67 billion barrels of in-situ oil, West Karoun fields definitely deserve the spotlight which has been put on them recently.

The post Domestic firms ink MOUs to conduct development study on Azadegan field appeared first on Iran News Daily.

Speaking on the sidelines of the ceremony for developing the Azadegan oil field, Bijan Zangeneh stated that despite imposed sanctions on financial, technological, and equipment, enormous steps had been taken in Iran’s oil fields, one of which was West Karun oil field reaching from 70,000 to 400,000 barrels per day.

Zanganeh noted that the main points to consider for oil increase were management and technology.

“Fortunately, imposed sanctions have made Iranian companies attend in oil trading at foreign markets,” he pointed.

He said entrusting oil revenue to private sectors could create a big difference.

Zangeneh added that the oil increase could make the country independent, underlining that the oil revenues were not just to pay salary or subsidies.

With 1,500 square kilometers, located near the Iraqi border and about 80 kilometers west of Ahvaz, the Azadegan oil field is the largest joint oil field in Iran.

The in-place oil reserves of this field are estimated at 32 billion barrels. The field is shared with Iraq’s Majnoon field.

The ceremony was held on Monday by the Iranian Minister of Oil Bijan Zangeneh and the National Iranian Oil Company CEO for signing three documents between NIOC and 5 Iranian exploration and production firms on May 31, 2021.

Understanding the study’s memoranda for developing the Azadegan oil field was inked between the National Iranian Oil Company and Iranian exploration and production companies.

In a ceremony attended by the Oil Minister Zangeneh and the National Iranian Oil Company CEO on Monday, study agreements for the development of the Azadegan joint field were signed between the National Iranian Oil Company and five Iranian exploration and production companies.

During the ceremony, the executive operation of the gas production maintenance plan of Homa, Varavi, and Tabnak fields in the area of the Central Iranian Oil Company commenced by establishing a connection with the project site in the south of Fars Province.

Homa, Varavi, and Tabnak fields in the Parsian operational area of the South Zagros Oil and Gas Exploitation Company are located near the cities of Parsian, Lamerd, Khan, and Mohr.

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The National Iranian Oil Company (NIOC) has planned to award Petropars company a $1.87 billion contract to develop Farzad B Gas Field.

According to the National Iranian Oil Company, with regards to the policies of the Iranian Ministry of Petroleum to tap the capacity of Iranian companies, the buyback contract for the development of Farzad B Gas Field will be signed with the NIOC as the employer and Petropars Company as the contractor on Monday, May 17.

The goal of this $1.78 billion contract is to achieve a daily production of 28 million cubic meters of sour gas in the field over five years.

The gas produced in this field will be transferred to the onshore facilities of Pars 2 in Kangan region for processing. In the onshore facility, gas condensate is first separated from the sour gas and then transferred to the South Pars refinery of phases 12 and 19 for stabilization.

The contract entails drilling eight production wells, construction and installation of two main and secondary wellhead platforms, construction of liquid separation facilities on the main platform, construction of a 36-inch offshore pipeline of approximately 230 km to transfer sour fluid from the main platform to onshore facilities, construction of a 10-inch offshore pipeline approximately 230 km long to transport condensate to land, construction of a 20-inch pipeline connecting the 3 platforms with a length of 3 km, construction of offshore facilities including receiving equipment for the produced sour fluid and condensate separation along with ancillary facilities and onshore pipelines for the transfer and distribution of sour gas and condensate to refineries located in the Pars 2 region.

According to the Pars Oil and Gas Company, the amount of in place gas at Farzad B Field is estimated at 23,000 billion cubic feet, with gas condensate estimated at 5,000 barrels per billion cubic feet of gas.

The Farzad B joint gas field is located in the Farsi bloc on the border between Iran and Saudi Arabia and at a distance of about 20 km from the Farsi island.

Petropars, Iran’s leading general contractor, inked a buyback deal with NIOC  to produce 28 million cu m/d of sour gas over five years from reserves shared with Saudi Arabia. The gas condensates and sour gas produced will be sent to southern South Pars gas plants.

Farzad B’s gas in place is around 23 Tcf and its gas condensates amount to around 5,000 barrels/Bcf.

An ONGC Videsh-led consortium discovered Farzad B gas within the Farsi offshore gas block in 2008 together with Oil India and Indian Oil. The consortium had signed a preliminary exploration-development deal with Iran in 2000, while only the exploration was done. In 2016, Iran said it was examining the Indian proposal but that an agreement was unlikely because of the difference between Iran’s demanded gas price and India’s offer.

On the sidelines of the ceremony, veteran Iranian oil minister Bijan Zanganeh said he will not continue in his role once a new president is inaugurated after elections scheduled next month.

“I am retired.” said Zanganeh, 69, a technocrat politician with 20 years of service in various ministerial offices. “But I will remain in politics.”

His departure comes at a critical moment for Iran’s oil industry, which is poised to return unrestricted to the market pending an agreement on nuclear sanctions with international powers. Amid negotiations, Tehran has ratcheted up production in recent months and succeeded in finding customers from its crude in China, according to market sources.

The post Offshore Farzad B Gas Field to Be Developed appeared first on Iran News Daily.

The Persian Gulf Bidboland Gas Refining Company has signed the deals for the construction of 24 centrifugal compressors and a gas processing plant at Ragsefid Operational District.

A signing ceremony was held at the Iranian Oil Ministry on Monday to sign the contracts in the presence of Oil Minister Bijan Zanganeh as well as Mahmoud Aminnejad, the CEO of Bidboland Persian Gulf Gas Refining Company, along with the CEOs of the three Iranian firms.

The concluded deals entail construction, installation and commissioning of 24 centrifugal compressors with a value of 75 million Euros with Oil Turbo Compressor Company (OTC), MAPNA Turbine Engineering and Manufacturing Company (TUGA), and a contract for the collection of associated petroleum gas in the Ragsefid operational district worth 90 million Euros with Energy Industries the Engineering and Design (EIED) Company.

OTC is responsible for the construction of 16 centrifugal compressors for Aghajari 5 and Bibi Hakimeh 1 operation units and Pazanan gas pre-compression station. On the other hand, TUGA will build eight centrifugal compressors at a gas collection plant for Bibi Hakimeh 2.

The gas collection plant is aimed at preventing gas flaring, observing environmental considerations, creating value added from collecting the flared gases in the east of Karun River and providing sustainable feedstock to petrochemical companies. To this end, two contracts for “improvement and construction of gas collection facilities” were signed in September 2018 between the National Iranian South Oil Company (NISOC) and the Persian Gulf Bidboland Gas Refining Company and Maroon Petrochemical Company with a total investment of 1.3 billion dollars.

The $1.109 billion contract with Bidboland Persian Gulf Gas Refining Company includes 27 projects for construction of flared gas collection plants, improvement of existing plants and transfer of collected gas to Bidboland Refinery.

With the implementation of these projects, about 600 million cubic feet per day of associated gases will be collected and transferred to the refinery and about 1.5 million tons of C2 + will be added to the refinery’s feed annually, which is a big step in solving the feedstock shortage of this refinery and the nearby petrochemical plants.

Also, with the implementation of this project and processing of associated gases, about 400 million cubic feet of light gas will be provided to the National Iranian Oil Company on a daily basis, which will be used for injection into oil fields or to supply fuel to the country.

MR/SHANA

News Code 171704

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IRAN NEWS ECONOMIC DESK

TEHRAN – Stating that the export of 2.3 million barrels is possible, Minister of Oil Bijan Zanganeh said that Iran does not need permission to return to oil markets.

He made the remarks on the sidelines of the opening ceremony of South Pars phase 11 drilling on Monday.

“If there are no sanctions and resources are provided to rehabilitate wells that have been reduced in production, 2.3 million barrels can be exported,” said Zanganeh.

Noting that OPEC has the commitment to maintain prices, he added, “Iran does not need permission to return to the oil market because it considers it as a right.”

Elsewhere in his remarks, he referred to the sanctions, saying, “During the sanctions period, we proved that we will not give up and find another way to prevent the stop of the development of the oil industry through the efforts of our colleagues.”

“Despite U.S. sanctions against Iran’s oil industry, Iran’s oil production has never stopped,” Zanganeh highlighted.

He reiterated that if the sanctions are lifted and resources for revival pf production in some wells whose production has decreased, Iran can export 2.3m bpd.

On the possible candidacy for running president in 2021 election, he said he himself has also heard such a rumor, reiterating that one should not trust whatever he ears.

Zanganeh also warned people over gas consumption, saying that people should stop wasting gas and they should be used according to their needs otherwise they may face restriction.

On the conditions set by foreigners for return to Iran in case of lifting sanctions, he said first the U.S. should return to the JCPOA, then we can talk about this point.

Touching upon developing joint fields, he emphasized that currently, the ministry is focused on developing Balal, Farzad, Kish and South Pars fields in the gas sector and Karoun, Jofeir and Sepehr projects in oil sector.

He also said that the first phase of Phase 14 of South Pars is to come on stream by the yearend.

Zanganeh reiterated that if the South Pars gas field is not developed and the production is not protected, the country will face shortage of gas in two years.

He went on to say that the ministry has called on domestic companies to start development of some gas and oil fields as soon as possible, noting that currently 95 percent of the total population of the country enjoy using gas services.

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IRAN NEWS NATIONAL DESK

TEHRAN – Oil Minister Bijan Zanganeh says the United States is responsible for deaths of over 400 Iranians per day due to coronavirus infection as Washington prevents Tehran’s access to financial resources it needs to fight the pandemic.

“The U.S.’ sanctions and depriving Iran of [its] hydrocarbon revenues has caused the country to face problems in handling the new coronavirus [pandemic],” Zanganeh said on the sidelines of the Gas Exporting Countries Forum (GECF)’s 22nd ministerial meeting that was being held via video-link on Thursday.

“Therefore, I believe that the U.S. administration is responsible for the deaths of [more than] 400 Iranian people every day due to the coronavirus’ pandemic,” he added.

The administration of outgoing U.S. President Donald Trump returned its sanctions against Iran after leaving an international nuclear deal between Iran and world powers that has been ratified by the United Nations Security Council.

The administration has refused to relax the bans, even in the case of foodstuffs and medicinal items, despite the deadly march of the November 2019-present pandemic and a UN court ruling that has obliged it to suspend the coercive measures.

Elsewhere in his remarks, Zanganeh denounced the U.S.’ departure from the Joint Comprehensive Plan of Action (JCPOA), the nuclear deal’s official name, and Washington’s restoration of the sanctions as nothing but “[acts of] bullying against Iran and the world.”

At a time when international markets have already been battered by the viral outbreak, Washington has compounded matters by preventing Iran from using its assets and revenues to facilitate its people’s lives, especially in the humanitarian and medical areas, the minister said.

The Iranian official reminded how the U.S. has acted in a similar unilateral manner by leaving the Paris climate deal, imposing tariffs on Chinese imports, which has led to a Sino-American trade war, and unprecedentedly damaging its transatlantic ties with Europe.

However, the key to realization of a peaceful world, where energy products such as gas enjoy sustainable and mutually beneficial production levels, “lies in expansion of international cooperation, attention towards multilateralism, and refrain from one-upmanship,” he concluded.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Oil Minister Bijan Zanganeh in a message in his twitter account announced that 25^th International Oil, Gas, Refining, and Petrochemical Exhibition has been postponed due to the spike in the Coronavirus (COVID-19) virus.

In his message, he wrote that the ministry was to hold the exhibition on October 12-15 but due to the current condition in Tehran and the spike of COVID-19, it decided to postpone the event t another date.

Mr. Zanganeh noted that the ministry has observed the health ministry’s directives and restrictions regarding the Coronavirus and since the health of participants in the exhibition is the priority, the oil ministry decided to postpone this big oil event.

He added that since the country is involved in an economic war, the oil ministry was determined to display the capabilities of domestic industries related to the oil industry and it will reschedule the date of the event to another time which will be announced soon.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Oil Minister Bijan Namdar Zanganeh yesterday reiterated that the ministry refutes reports that it is to increase the price of fuel oil.

Speaking on the sidelines of a ceremony for signing 13 oil agreements in Tehran, Zanganeh said that he does not know who is behind this allegation that the government is to increase the price of fuel oil, rejecting all allegations on price hike of the fuel oil.

On the shortage of liquefied gas in Sistan and Baluchistan Province, he said that unfortunately citizens of the province are facing shortage of the liquefied gas, adding that he has ordered for shipping more liquefied gas to the province to meet the demands of the residents, and this problem will be resolved soon.

On the value of the agreements signed in the ceremony, Zanganeh said that these agreements are valued at over 1500b tomans. He said that these 13 agreements can boost exploitation from the oil and gas fields.

He said some nine more agreements had been earlier signed, adding that now 50 percent of national oil reserves are under coverage of these researches and hundreds of students and experts are working on them and will present hundreds of papers and articles.

Zanganeh praised the role and value of universities, saying that their value is not less than oil production in those oil fields.

He went on to say that university and industry should work together and they are correlative, adding that all should be patient because universities are the transplanted heart of oil industry and this transplantation has happened now.

He said this time universities stepped forward for signing the deal voluntarily and they welcomed the ministry’s proposals.

He also blasted the monopoly, adding that monopolization is not a good thing and competition is valuable.

Zanganeh also said that some good and important agreements have been signed in the downstream of oil industry which need support in order that the country can possess license and knowhow.

He also pointed to the beginning of the Sacred Defense Week, saying that jihad should continue in all layers of the life and today the country is alive because of efforts of unknown jihadis who continued their endeavors after the eight-year war in different fields.

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IRAN NEWS ECONOMIC DESK

TEHRAN – On the sidelines of a meeting, Oil Minister Bijan Namdar Zanganeh referred to the purchase of Iranian gas by Iraq and said that using Iranian gas is very economical for Iraq because natural gas replaces diesel, which is more than twice the price of the gas.

When asked the question that the Iraqi Minister of Oil has stated that its country does not need Iranian gas and will cut it off in the future, Zanganeh replied: “No, they have not said such a thing. They have signed contracts for gas production in Iraq because Iraq has the capacity to produce gas and can use it anyway, but this is time-consuming and now Iraqis are willing to receive a lot of gas from Iran.”

Zanganeh also mentioned in his meeting with people about renting foreign boats and said: “The Ministry of Oil has generally banned the leasing of foreign vessels and has given priority to leasing domestically built vessels.”

Regarding Iran’s gasoline reserves, the oil minister said: “Iran’s gasoline reserves had reached more than 5 billion liters in May, but now they have decreased due to exports.”

Zanganeh went on to say that in months of Ordibehesht and Khordad, the amount of stored gasoline hit 5b liters but currently due to exports, the figure has decreased and everything is getting normal.

He further said that developing CNG industry for the public transportation was another issue which was discussed in the meeting, reiterating that CNG is a priority for the ministry.

Zanganeh added that talks with knowledge-based companies for manufacturing equipment and offering services have started.

He emphasized that the ministry is determined to stop imports if the domestic-made equipment is high quality, and it is the policy which is pursued in any section of the ministry.

He further said competition is a main factor for improving the quality, admitting that currently the number of foreign companies in the country is insignificant and there is no high competition in the country which is not good at all but this is a good opportunity for growth of domestic companies.

Zanganeh noted that all needed equipment by the oil ministry, which is domestically-made, is studied by the related bodies and in case its quality is verified the purchase, import of its similar foreign-made counterpart will be banned.

Establishing the organization for issuing quality certificate was a major move which started two weeks ago, and this organization assures consumers of the quality of the domestic-made goods and their standards which are needed by the oil industry, the minister added.

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