Administration of oil industry by local workforce
One of the major achievements in the post-Islamic Revolution era is the administration of oil industry by local workforce.
Iranian expert knowledge consummated in Imposed War
Eight years of the Imposed War, resuming production and going ahead with the development plans amid the crises such as economic sanctions led to recognizing the abilities of local human recourses.
Management of upstream oil industry: building self-assurance
Management of upstream oil industry and building self-assurance in management of this key industry are other courtesies of the Islamic Revolution. Perhaps few persons could believe that the management of this industry by the creative workforce of the post-Islamic Revolution would come true.
Localized technologies in oil and gas industry
Gaining access to localized technologies in the upstream oil and gas sector (exploration, drilling, development, production and injection), as well as other sciences related to oil and gas, is another major achievement in the post-Islamic Revolution era.
Development of domestic manufacture of goods, facilities
Finally, the most drastic change after the Islamic Revolution may be remarkable development of domestic manufacture of goods and facilities. In the post-Islamic Revolution era, the most complex facilities such as production units, refinery units, construction of marine structures and pipeline are built and launched inside the country.
Investment Opportunities in NIOC's Oil and Gas Industries (Upstream, Midstream, and Downstream Industries)
NIOC's Major Policies in Oil and Gas Industries
Gaining financial resources (from internal resources and foreign financial facilities)
Developing human resources and technical expertise
Creating a competition atmosphere by privatization and deregulation
Strengthening Iran's role in global energy markets by developing international transactions
Focusing on the development of oil and gas resources
Taking advantage of Iran's geopolitical status in the region to develop the country's energy sector
Having huge hydrocarbon reserves, National Iranian Oil Company (NIOC) is considered as one of the giant oil companies in the world.
The in-situ oil and gas reserves of the company are now estimated to be 137 billion barrels of oil and 17.28 trillion cubic meters of gas.
Considering its short-term, mid-term, and long-term programs and projects, National Iranian Oil Company (NIOC) plans to invest and carry out common activities in different oil and gas production projects while maintaining the interests of the participating international companies and investors.
Here are the company's general objectives and areas of potential investments:
1.Some of NIOC's Production Goals
To increase the crude oil production capacity from some 4.4 million barrels per day in 2008 to 5.1 million barrels per day in 2014
To increase the natural gas production capacity from 552 million cubic meters per day in 2008 to 1,111 million cubic meters per day in 2014
To increase the condensate production capacity from some 283,000 barrels per day in 2008 to some 748,000 barrels per day in 2014
To increase the NGL production capacity and oil from some 160,000 barrels per day in 2008 to 337,000 barrels per day in 2014
Considering National Iranian Oil Company's (NIOC) objectives, the potentiality of investment in the Fifth Development Plan (2009-2014) for development and exploration activities is estimated to be some $155 billion, i.e. foreign investors can take advantage of the appropriate conditions and participate in this profitable business.
2.An Overview on Development Projects
- 14 exploration and development projects
- Kalat, Ghuchan, Naft Shahr, Ilam, Danal, Bandar Abbas, Fasa, Raaz, Tapeh Marveh, Moghan, Kavir, Alvand, Laleh, and Taban blocks
- Development of 30 onshore and offshore oilfields
- Bande-karkheh, Yadavaran, North Azadegan, Arvandan, Susangerd, Cheshmeh khosh, Changuleh, Azar, Rig, Shorum, Dudru, Southwest Zagros (Khesht and Kuhkaaki), Southeast Zagros (Sarvestan and Saadatabad), Kuh Mond, Viznahar, Shakheh, Abadan, Alborz, Bushgan, Bushehr, Esfandiyar, Ferdowsi, Towsan, Mahshahr, Hengam, and Alfa oilfields
- Development of 11 onshore and offshore gas fields
- Asaluyeh, South Goshuy, Dey, Sefid-zakhur, Gordan, Soru, Namak-e-gharbi, Zireh, Farsi (Farzad-bi), Lavan, and Kish gas fields
- Development of 9 gas formations
- Karanj (Khami), Lab-e-sefid (Bangestan), Rag-e-sefid (Khami), Milatoon (Sormeh), Ilam layer of Esfand Field, Ghar layer of Bahregansar Field, Dalan/ Kangan layer of Resalat, Dalan/ Kangan layer of Reshadat, and Dalan/ Kangan layer of Balal
- Gathering of associated gases and gas injection projects
- Construction of LNG and gas plants
- Projects associated with Increased Oil Recovery (IOR) and Enhanced Oil Recovery (EOR)
1.Refinery Construction Project in Kedah, Malaysia
The project involves construction of a refinery with a capacity of 250000 bpd of crude oil in Malaysia.
To feed the refinery, a mixture of 100000 barrels of export heavy oil and 150,000 barrels of Forouzan crude oil has been considered. The refining process is based on conversion of heavy products to valuable light products using hydrocracker and coke production units.
2.Condensates Refinery Construction Project in Johor, Malaysia
The project involves construction of a refinery with a capacity of 120000 bpd in Johor, Malaysia. To feed the refinery, the gas condensates of Southern Pars have been considered.
3.Hormoz Refinery Construction Project
a.Selection and signing a contract with the consortium made up of Sazeh, PEDEC, etc. as the EPC contractor of processing units.
b.Selection and signing a contract with the consortium made up of OIEC, EIED, ODCC and Dextron as the contractor of offsite and utility units.
4.Refinery Construction Project in Indonesia
The project involves construction of a refinery with a capacity of 300000 bpd in a joint-venture investment. To feed the refinery, 100000 barrels of extra-heavy oil of Iran have been considered.
5.Refinery Construction Project in Syria
The project involves construction of a refinery with a capacity of 140000 bpd located in 40 kilometers southeast of Homs, Syria.
To feed the refinery, a combination of 25 percent of Syria’s light crude oil, 25 percent of Syria’s heavy crude oil, 30 percent of Venezuela’s crude oil, and 20 percent of Iran’s heavy oil.
HRC, ORIDC, PDVSA and Petrofield are the shareholders that hold 15, 26, 33 and 26 percent of shares respectively.
Required investment is assessed to be approximately $2.6 billion, of which 30 percent is paid by investors and the rest is made with credit coming from banking facilities. The aimed market of the refinery is domestic market of Syria. Oil Ministry of Syria is supposed to buy all products in international prices by signing an agreement.
6. Refinery Construction Project in Vietnam
Following the requests of authorities at Oil Ministry of Vietnam and proposals of the Iran’s Foreign Ministry with regard to evaluate the possibility of participation in construction of Nghi Son Petrochemical Refinery Complex, preparatory sessions held in Vietnam with respected authorities and National Iranian Oil Refining & Distribution Company (NIORDC) announced its willingness to participate in the project. This refinery is located in 180 kilometers of Hanoi and has the production capacity of 150000 barrels of crude oil per day.
7.Pars Refinery Construction Project
According to integrated planning studies, the Board of Directors of NIORDC approved construction of a refinery with the capacity of 120000 barrels of gas condensates per day, and construction of a pipeline that supplies jet fuel and gasoline in a 450-kilometer distance between Asaluyeh and Shiraz. It was scheduled that this project has to be implemented with foreign investment partnership.
8. Persian Gulf Star Gas Condensates Refinery Project
The project aims to build and put into operation a gas condensates refinery with the capacity of 360000 barrels per day in Bandar Abbas.
Project participants are NIORDC (40%), Pension Fund (9.9%) and Indonesia’s SRC (5.01). The amount of investment is 2 billion euros.
9. Partnership of Saudi Arabia
Following an agreement, both sides agreed to jointly carry out BF/S studies on construction of Armatic Refinery Complexes with the capacity of 120000 barrels of gas condensates and petrochemicals per day
9.Partnership of Senegal
Project: increasing the capacity of Senegal’s SAR refinery
The production capacity of the refinery will be increased from 1.2 to 3 million tons per annum. 34 percent of the refinery’s shares will be transferred to NIORDC, while the maximum amount investment is 44 million euros. These all depend on signing the agreement according to new shareholders and also ensuring reimbursement of the required financial facilities by the Senegalese government.
Investment of NIORDC in SAR developmental projects will be based on 50-50 percent, providing 6 million euros in cache and 4 million euros in form of materials and services.
10.Partnership of Sri Lanka
1. Under the agreement signed between Sri Lanka and Iran’s oil ministries, both sides agreed that NIORDC carries F/S studies on increase of the refinery’s capacity from 50000 to 100000 barrels of oil within a six-month period at its own expenses.
2. If both sides enter into agreement on F/S results, NIORDC will make a work offer in form of EPC.
11.Partnership of Zimbabwe
Project: Renovation and reconstruction of Feruka refinery in Zimbabwe
Financial and technical offer for reconstruction of the refinery has been submitted by NIORDC to the Energy Ministry of Zimbabwe.