Speaking in a press conference Ehsan Saghafi said that in the past years, the Labor Ministry had less entered the field of formations and it has been mostly involved in the field of labor and entrepreneurship and this meeting is for brainstorming in the field of occupation, labor, production and ease in business and production.

He then touched upon the contracts for construction of refinery in Venezuela and said that of course it is just in the MoU level and only few projects have been started but they have not been considerable. He termed positive trend the current interactions and called it effective in the business of manufacturers. He noted that since the sanctions on Venezuela have reduced, the issues for construction of medium and big refineries by Iranian EPC activists have been raised.

Saghafi went on to say that in each PC project, 50 to 60 percent of the equipment are home-made and for construction of a small refinery some 300m euros is needed that 50 to 60 percent of costs are for equipment and therefore Venezuela can be a good market for Iranian equipment and for construction of a big refinery some 5m euros is needed.

He also pointed to the contracts with Russia and using the capacity of the domestic manufacturers and said that in this field, nothing special has happened and it is just in negotiation level.

Saghafi went on to say that the society has had primary talks with Belarus, Kazakhstan, Uzbekistan and Indonesia for exports of technical and engineering exports but it has not reached the executive stage.

He then pointed to the impacts of sanctions and said that sanctions have affected all fields and in some fields it has turned into opportunity and the society should take advantage of this opportunity and improve the current condition of interest in the domestic manufacturers.

He admitted that this field has also suffered by the sanctions for providing raw materials and financial transactions for purchasing the raw materials. He reiterated that currently 80% of the required equipment in the oil industry is produced in the country.

He then pointed to the issue of labor force and said that the country faces shortage of the expert forces in the oil industry and the expert forces have lost their motivation and this will lead to the flight of experts to foreign countries and the country needs to take some wise action.

Saghafi added that currently the society has some contracts with oil industry worth of 2m euros for manufacturing equipment.

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Owji made the remarks at inauguration ceremony of the 26th International Oil, Gas, Refining and Petrochemical Exhibition, Iran Oil Show, and said investors are well aware of the profitable investment in this sector given the energy crisis.

As one of the largest exhibitions in the world oil industry, the Iran Oil Show is an annual gathering and a place for domestic and foreign activists’ interactions in Iran’s oil industry, he said.

The 26th Iran Oil Show’s motto of “Knowledge-based oil industry, Iranian production, Global exports” is very inspiring, he said, a knowledge-based oil industry and focusing on the domestic production are Iran’s Petroleum Ministry’s top priority at the current stage, the same as it is across the world where oil industry is an area of development of many new technologies.

Referring to participation of 23 universities and research centers and over 100 knowledge-based companies, startups, technology parks and science and research towns in the exhibition, he said it shows the Petroleum Ministry is determined in this area, adding the motto of the year “knowledge-based production and job creation”, announced by the Iranian Supreme Leader, has also increased our responsibility.

Emphasizing that our approach to a knowledge-based oil industry and focusing on the domestic production is by no means a slogan, Owji stated, Petroleum Ministry and the Vice-Presidency for Science and Technology prepared and regulated the plan for knowledge-based production and job creation in oil industry which will soon be approved by the Cabinet.

Wide-ranging measures to increase production, make a knowledge-based oil industry and create more employment opportunities are on the agenda of the Ministry of Petroleum, Owji noted.

The second step in establishing a knowledge-based oil industry and focusing on the domestic production was issuing a call for participation of knowledge-based companies in oil industry’s prioritized areas, he added, over 300 companies cooperated in prioritized and job-creating areas of optimization, rehabilitation of low-efficiency wells and value chain development. We have already closed contracts with such firms and allocated facilities and support to them under the Note 18 of the Budget Law, he added.

Finalizing the oil technology ecosystem is another priority of the Ministry of Petroleum he said, adding the Ministry seeks to activate innovation centers near universities, set up knowledge-based companies and start-ups in the oil technology park and develop such parks, he said.

Owji also stressed the need to focus on the investment and development in the oil industry and said, “the manufacturing sectors, knowledge-based companies and manufacturers will not be dynamic and the business environment in the oil industry will not improve unless investment is made. Therefore, the investment is mainly aimed to activate various contractors, manufacturers and service providers.”

Lack of resources required to develop the oil industry in recent years has not only jeopardized the sustainability of oil and gas production but also posed a threat to the country’s energy security, he said, adding, “Accordingly, investment and providing the ground for development in oil industry is a top priority.”

If investment is not made in time in the oil industry, we will undoubtedly face a deficit in the production and consumption of energy in the country, so we have developed various programs to seek investment in different sectors of this major industry.

Owji said Oil Ministry has managed to sign 50 agreements and memoranda of understanding, worth over 16.7 billion dollars, in the first nine months of the 13th government through deploying the potential of large oil and petrochemical holdings and banks, as well as negotiating with reputable international companies, he said. These projects mainly focus on the development of the joint oil and gas fields, flare gas collection, development of the refinery value chain, as well as utilizing the potential of knowledge-based companies and domestic manufacturers.

On sanctions, he said confronting sanctions and strong energy diplomacy are among the top priorities of the ministry, adding in the current circumstances, Iran’s oil industry is on the economic front line and confrontation with enemies.

Noting that the exhibition is a manifestation of the capability and authority of the Islamic Republic of Iran in the current situation, he added, “Despite the sanctions, domestic capacities in all fields including equipment manufacturing, design and engineering, contracting and execution of projects are growing. And, they are hopefully planning for the future which is a sign of the failure of sanctions policy.

Sanctions have failed to stop the development of our oil industry and exports, he continued, “we have been able to diversify our market, increase oil exports and facilitate our financial venues which raised our revenues remarkably.”

In the end, he thanked all those involved in holding this exhibition and the participating companies as well as the help of all institutions, Iran’s Parliament in particular, and emphasized, “If Iran’s oil industry improves, all industries, factories and the national economy will improve and create employment opportunities for young people and provide the ground for professionals to grow.”

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In a phone conversation with Oil Minister Bijan Namdar Zanganeh, the president added the country has been provided with the opportunity to reach this goal given the government’s economic plans over the past 12 months and the progress made in their implementation without relying on oil revenues in the national budget, which is an unprecedented achievement in the history of the country, Mehr News Agency reported.

Rouhani said accelerating the implementation of the Oil Ministry’s plans to increase production of oil byproducts and prevent the overseas sales of crude oil can minimize the damage of the global market’s severe fluctuations and drop in oil prices on Iran’s economy.

Rouhani described the current Iranian calendar year (which started on March 20) as the year of preparing and completing the country’s major development and infrastructure projects, calling on the oil minister to draw up the ministry’s plans in such a way as to guarantee the timely completion of the country’s large-scale oil projects this year.

“If there are problems or obstacles in the way of implementing these plans, they must be immediately referred to the headquarters formed for this purpose in the President’s Office,” he stressed.

Zanganeh also presented a report on the progress made in the implementation of Iran’s oil projects, the latest developments in the global oil market and oil exchange with other countries.

The president also held separate phone talks with Health Minister Saeed Namaki and Economy Minister Farhad Dejpasand, discussing the latest developments in the country, including the battle against the coronavirus pandemic and the economic development plans that are aimed to help support people amid the crisis and accelerate the process of curbing the disease.

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In remarks at a Tuesday meeting of a headquarters planning a surge in domestic production, Bijan Namdar Zanganeh said an Iranian company will resume drilling in the phase 11 of South Pars gas field which has remained unfinished after Total and the CNPC left the project.

The oil minister said it is high on the agenda of the administration to complete the South Pars gas field projects, adding that completion of 17 phases of the field will lead to production of 750 million cubic meters of gas.

Zanganeh also said the Oil Ministry expects to bring 17 petrochemical plants into operation in the current Iranian year, which began four weeks ago, noting that the new plants will produce $6 billion worth of new products.

In July 2017, French company Total signed a $1 billion deal to develop the South Pars gas field in cooperation with China National Petroleum Company (CNPC) and Iran’s PetroPars.

But the French pulled out of the deal in May 2018 in light of a decision by US President Donald Trump to pull his country out of the 2015 Iran nuclear deal and impose sanctions on Tehran.

Later, the CNPC formally replaced Total in the project, but it suspended investment in Iran later in December 2018 in response to US pressures.

The investment halt followed four rounds of talks between Chinese officials and senior US authorities who urged CNPC to refrain from injecting fresh financing in Iran.

South Pars is the world’s largest gas field.

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In a post on his Twitter account on Tuesday, Zanganeh said he has held telephone conversations with Algeria’s Minister of Energy and President of the OPEC Conference 2020 Mohamed Arkab, Russia’s Minister of Energy Alexander Novak, and Kuwait’s Oil Minister Khalid al-Fadhil over the previous two days.

The oil minister of Iran said his consultations revolved around the decisions that members of the Organization of Petroleum Exporting Countries (OPEC) and its allies are going to make in the upcoming meeting to restore stability to the world oil market.

It empathized in the negotiations that the other oil producers, including the US and Canada, should also participate in the plan, Zanganeh added, stressing that before any meeting between the OPEC and non-OPEC countries, an agreement must be reached on the basic production figures of each country, which will be necessarily a basis for the production cuts.

The OPEC members and allies, including Russia, are going to hold the video conference meeting on Thursday.

Their previous meeting in early March ended in failure to extend cuts and a price war between Saudi Arabia and Russia amid slumping demand.

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