The development of oil and gas fields shared with neighboring states, collection and processing of associated petroleum gas and optimization of hydrocarbon value chains with the help of knowledge-based firms are among the Oil Ministry’s priorities in the current fiscal year (started March 21).
Oil Minister Javad Owji made the statement at the inauguration of the 26th International Oil, Gas, Refining and Petrochemical Exhibition in Tehran on Friday, the Oil Ministry’s news service Shana reported.
“The National Iranian Oil Company has concluded 50 agreements worth $1.7 billion with local companies over the last nine months with the aim of helping startups play a bigger role in Iran’s energy sector,” he said.
“The Oil Ministry is determined to complete 48 unfinished ventures at an estimated cost of $13 billion and launch 25 initiatives costing $30 billion by the [fiscal] yearend [March 20, 2023].”
Owji noted that NIOC is determined to create opportunities for startups and pave the way for knowledge-based firms so that they can bolster different oil and gas sectors, especially those active in manufacturing pipes, turbines and compressors.
Knowledge-based companies and startups are expected to propose creative ideas for reducing production costs and boosting productivity in the key industry. The ministry’s Research and Technology Department is tasked with facilitating their activity.
“Startups have already indigenized key catalysts and essential equipment and parts for the petrochemical and drilling sectors,” he said.
There are more than 5,500 oil and gas wells in 400 oil and gas fields of the country and by using the expertise and new technologies of knowledge-based entities, it is possible to create jobs and income, especially in underprivileged regions.
“Using the capabilities of knowledge-based companies, we will be able to add at least 80 million barrels of oil to NIOC’s annual production capacity that currently stands at around 1 billion barrels,” Owji said.
According to the minister, making investments and developing Iran’s oil upstream sector, which has huge capacities in terms of hydrocarbon reserves, could help enhance the world’s energy security for decades.
There is no denying the fact that the implementation of development plans in shared hydrocarbon reserves requires massive investments and the attraction of foreign investment is near impossible due to US sanctions, so a new scheme has been drawn up and the private sector should be given a bigger role.
Prominent Position
As a guest lecturer at the exhibition’s inaugural ceremony, Mohamed Hamel, secretary-general of the Gas Exporting Countries Forum, acknowledged the prominent position of Iran in the energy world that rests on the very foundation of GECF, OPEC and the International Energy Forum.
Hamel recounted important milestones achieved by the 18-member GECF on the back of active Iranian contribution.
The GECF official appreciated Iran’s active participation in multilateral mechanisms with a view to enhance global cooperation on energy security and sustainable development.
“Development projects in the natural gas industry are estimated to require at least $8 trillion in investment by 2050,” he said.
According to Hamel, global gas consumption has increased by 26% over the last decade and the uptrend will continue.
“Globally, we will get the largest amount of our energy from natural gas [27%] followed by renewables by 2050,” he added.
Led by China and the Middle East, the International Energy Agency sees global demand for natural gas growing more than four times faster than demand for oil over the next two decades.
GEFC wants to further promote the use of natural gas as an environmentally-friendly transport fuel, including for global shipping.
The gas organization includes the world's biggest gas exporters – Russia, Qatar and Iran – and holds around 60% of the world's proven gas reserves.
Transition to Renewables
Energy experts, including Owji, believe the transition to renewables is underway across the world to address climate change and natural gas as an indispensable part of the global energy mix, as it can play a key role in helping the world shift to a lower carbon energy future and protect the environment.
“The high use of fossil fuels like coal and crude oil without measures to mitigate greenhouse gases has had global climate change implications,” Owji said, adding that natural gas is needed to limit the impact.
Nonetheless, countries like Iran, which are blessed with an abundance of underground resources such as natural gas, cannot fully contribute to climate change mitigation and disaster risk reduction unless they are provided with the knowhow to tap into their low carbon energy resources more effectively.
“As long as the US unilateral sanctions are in place, developed countries will not be willing to transfer their knowhow to Iran and we will have to tap into eco-unfriendly fuels like mazut that is to the detriment of the world,” he said.
In other words, efforts to curtail greenhouse gases and lower carbon emissions will not yield the desired result unless developed countries share their high technology with developing states that have access to clean sources of energy, such as natural gas.
Iranian exhibitors along with 44 foreign firms have showcased products and services in a wide range of fields, including technical and engineering services, oil, gas and petrochemicals, industrial machinery and knowledge-based production in the Iran Oil Show 2022 with the motto "Knowledge-Based Oil, Iranian Production, Global Exports” will run until May 16.
