Speaking to reporters on Saturday evening following a meeting with professors of the universities which have signed deals with the National Iranian Oil Company (NIOC) for carrying out studies on oil and gas fields, Oil Minister Zangeneh was quoted by SHANA as saying that a new production record would be registered in Azadegan in the near future as Tehran University is to fulfill its commitment for EOR studies in the field.

He also announced the production of gas from Phase 11 of the supergiant South Pars gas field by the end of the Rouhani Administration by 2021.

“The purpose of signing these contracts is to solve the problems of the fields considered in the deals and enhancing their recovery factor. This began in 2014 and has progressed despite all the ups and downs,” he said.

Referring to the participation of many professors and postgraduate students in these projects, he said, “The head of the Tehran University’s Institute of Petroleum gave some good news at the meeting that they are committed to bringing the recovery factor of the Sarvak Layer from currently 5% or 6% to a minimum of 10%, which is equal to an increase of 3.5 billion barrels of oil.”

Zangeneh continued, “Although we are facing financial problems, I believe generosity for universities will pay off.”

Petrochemical Sector on the Developing Trail

Answering a question about the performance of the petrochemical industry, the petroleum minister said, “We hope that the second petrochemical leap will be achieved by the year 2021, with the realization of which the annual petrochemical production capacity will be around 100 million tonnes and the value of the produced items will be close to $27 billion.”

He further said the projects that would reach fruition after then would be categorized in the third leap of the industry. By the end of the leap, Iran’s petrochemical production capacity is envisaged to cross 136 million tons per annum and the value of the produced items will generate $37 billion for the country.

New Gas Output Record in Near Future

“We have good plans in the field of gas output and soon we will break the record of production of 1,000 million cubic meters of gas per day, there is a lot of gas produced currently but consumption is high, too,” further said Zangeneh.

According to the Iranian Minister of Petroleum, Iran’s household sector currently consumes over 600 mcm/d while over 850 mcm/d of gas is being delivered to the national gas distribution network.

He said there would be supply cuts in public buildings in case consumption continued to remain high domestically. “However, we cannot cut the gas in the household sector.”

“In designing the gas network, our priority is to ensure that the household and public sectors do not suffer, and that small and large industries and power plants are our next priorities.”

Holding OPEC Emergency Meeting Unlikely

In response to a question about the possibility of an OPEC emergency meeting ahead of the OPEC extraordinary meeting due in March, he dismissed that possibility and, regarding the likelihood of intensification of the output cut deal, said, “It is not still clear what decision will be made in this regard.”

Initial Gas Production from South Pars Phase 11 by the End of Rouhani Administration

Zangeneh said Petropars was currently refining its jacket structures and strengthening its calculations in this regard and was holding licensing rounds for purchasing the needed items. “We hope that by the end of the administration, we will have an initial production from Phase 11. The plan is gas output of one billion cubic feet and of course, part of the equipment must be supplied from overseas.”

He said that there was no plan to build a gas pressure boosting station for the time being, adding, “We are currently studying and there are various alternatives, including offshore and onshore pressure boosters.”

Zangeneh also did not rule out a decline in gas output exports to Iraq, citing technical difficulties.

The director of projects at the National Petrochemical Company, Ali Mohammad Bossaghzadeh, said various projects are currently under construction in the petrochemical industry of Iran, among which 23 new plants will be built in Asaluyeh in the near future.

He further said 21 projects are located in Phase II of Asaluyeh and 2 others are in the first phase of the complex.

The official further said that the zone will be playing a major role in the completion of the industry’s value chain in the near future.

“Petrochemical industry, as one of the main industries of the country, is one of the most important pillars of development and engine of various sectors of the economy in Iran,” he further added, saying that NPC has prioritized the completion of the production value chain, diversifying the products and promotion of the value of the produced items.

Bossaqzadeh said, “Today, the Iranian petrochemical industry, taking advantage of state-of-the-art technologies in the world and by relying on its specialized and efficient experts and staff, has taken the path of development. To become a major petrochemical power at the regional and global levels, we must now work with empathy and cooperation to deliver on the plans.”

The offshore gas field has been discovered 3,900 meters deep in the ground, and it is said to be capable of production for 16 years of gas consumption in capital Tehran.

Seyed Saleh Hendi, the exploration manager at the National Iranian Oil Company, confirmed the discovery of the gas field, saying “the field was discovered after one year of constant exploration in southern parts of Iran.”

Further details about the gas field will be soon disclosed by the CEO of the National Iranian Oil Company, according to the report.

According to the Iran Petroleum Ministry, the proved natural gas reserves of Iran are about 1,201 trillion cubic feet (34.0 trillion cubic metres) or about 17.8% of world’s total reserves, of which 33% are as associated gas and 67% is in non associated gas fields. It has the world’s second largest reserves after Russia.[1][2] As it takes approximately 5,850 cubic feet (166 m3) of gas to equal the energy content of 1-barrel (0.16 m3) of oil, Iran’s gas reserves represent the equivalent of about 205 billion barrels (3.26×1010 m3) of oil.

The US Energy Information Administration estimated Iran’s proved gas reserves as of 2016 to be 1,201 trillion cubic feet (34.0 trillion cubic metres),[3] rendering it second in the world.