In the last Iranian year (March 2022-23), $12 billion worth of oil, gas and petrochemical projects were launched and this year about $15 billion worth of oil and gas projects will be inaugurated.
Oil Minister Javad Owji made the statement at the opening ceremony of the 27th Iran International Oil, Gas, Refining and Petrochemical Exhibition, also known as Iran Oil Show 2023, in Tehran on Wednesday.
All of the launched projects have had a direct impact on increasing the production capacity of the country, he added.
Currently, Iran’s daily crude oil production is 3 million barrels and natural gas output is 1 billion cubic meters, while the annual production capacity of petrochemical products is about 95 million tons, the Oil Ministry’s news service Shana reported.
Regarding ongoing projects, Owji said several plans are underway, including the development program of Phase 11 of South Pars Gas Field and the first phase of South Azadegan Oilfield, more than 12 petrochemical projects, oil refining projects, including the Isfahan Refinery’s quality improvement plan, the plan to improve the quality of Shiraz Refinery products, launch South Adish Refinery and implement gas supply projects in industries and cities.
“An important point about the projects is that domestic companies will provide more than 80% equipment and goods for them,” he added.
Referring to the high capacity for investment in Iran’s oil and gas industry, the minister said: “We have created about $160 billion of investment opportunities in the upstream and downstream sectors of the oil and gas industry, and we are ready for all domestic and foreign investors to participate in these projects”.
At this year’s Iran Oil Show, in addition to 1,500 Iranian firms, some 200 foreign companies have taken part from 13 countries including Russia, China, Germany, Italy, France, Spain and Turkey among others. The exhibition will be open to visitors until Saturday.
Owji pointed to the presence of Russian companies and Russian Deputy Prime Minister Alexander Novak in the international event and said, “We have extensive cooperation with Russian companies and the presence of Russian delegation shows the depth of cooperation between the two countries in the field of oil and gas. Business-to-business (B2B) meetings between Iranian and Russian companies are also held on the sidelines of this exhibition.”
Iran-Russia Cooperation
On Tuesday, Owji and Novak discussed the two countries’ cooperation in oil, gas, petrochemical, electricity and nuclear energy fields.
Their discussions also revolved around following up previous memorandums of understanding and overcoming obstacles in the path of implementing the MoUs.
According to an agreement, Russia has allocated a credit line for the construction of Sirik Power Plant in Iran. It is a 1,400-megawatt gas-fired power plant in the outhern province of Hormozgan.
The project of synchronizing Iran-Russia-Azerbaijan power grids was also discussed at the session.
Iran and Russia also exchanged views on financial issues of phases 2 and 3 of Iran’s nuclear power plant in the southern province of Bushehr.
B2B Meetings
The first B2B meeting between Iranian and Russian companies on cooperation in oil and gas sectors were held at the Research Institute of Petroleum Industry (RIPI) in Tehran.
Iranian and Russian heads of state are completely prepared for expanding trade and economic cooperation in the oil and gas sectors, said the Russian trade representative in Iran.
“The B2B meeting is a big step toward enhancing bilateral cooperation in oil and gas sectors, as the value of trade transactions between Iran and Russia are increasing on a yearly basis,” Rustam Zhiganshin also told the inaugural ceremony of the meeting.
He added that representatives of over 50 small- and medium-sized Russian firms have taken part in the B2B meeting to discuss with their Iranian counterparts issues pertaining to oil, gas and petrochemical industries, manufacture of oil industry equipment, export of technical and engineering services and technological cooperation.
Iran’s North Drilling Company and Russia’s Traektoriya-Servis LLC on Tuesday signed a memorandum of understanding on cooperation in drilling operations.
The two sides, which signed the MoU on the sidelines of the Iran-Russia meeting, agreed to cooperate in implementing drilling projects, particularly directional drilling and supplying equipment.
Morteza Pakravan Nouqani, the acting head of North Drilling Company, said NDCO has considerable experience in offering technical and engineering drilling services, adding that “if Russians are eager to get [our] services, we will draw out contracts in the future.”
Iran and Russia are also considering a proposal to set up an energy consortium comprising the two countries’ companies to improve oil and gas production, the Iranian oil minister’s special adviser and assistant for international and trade affairs said at the opening ceremony of the first B2B meeting.
“Iran and Russia play a fundamental role in meeting the world’s energy needs. The two countries’ cooperation can contribute to the sustainability of the global energy supply,” Hossein Shameli was also quoted as saying by Shana.
He emphasized that the two countries’ private sectors can play a significant role in preparing the ground for the exchange of experiences in the fields of educating human resources and creating new financial mechanisms for accelerating and facilitating expansion of bilateral relations, which are all very essential for the development and completion of the two states’ energy chains.
Describing the prospects of Iran-Russia cooperation as long-term and lasting, the official said the economic development will be among the outcomes of such cooperation.
He added that the B2B meetings have provided the two countries with a favorable opportunity to consult and expand cooperation among knowledge-based firms in the energy field, as the first step toward fostering collaborations between their private sectors.
Shameli also proposed that an investment fund would be established by the two countries for financing joint oil and gas projects.
