By the end of the current Iranian year (March 2024), 64 incomplete projects in the oil industry worth $15 billion will be made operational, the oil minister said on Saturday.
“Despite the harsh conditions caused by sanctions and related problems, including difficulties related to financing or the provision of some equipment, the Oil Ministry has continued to invest in the oil industry, which is the driving force of the national economy,” Javad Owji was also quoted as saying by the Oil Ministry’s news service Shana.
“The executive operations of 15 new projects with a total investment of $15 billion will begin this year,” he said.
“Investment in the oil industry must continue without interruption. As I have said before, this industry needs huge investment, but the return on investment is also much higher than in other economic sectors.”
According to the oil minister, the total investment in the 79 new and incomplete projects will reach $30 billion.
“With 20 small and large projects, the petrochemical industry has the largest number of incomplete projects this year, and most of the new projects whose operations will begin this year belong to the National Iranian Oil Company,” Owji said.
“However, NIOC has the highest investment in the ongoing projects and the National Iranian Oil Refining and Distribution Company’s investment value in the projects whose executive operations will begin soon is higher than others.”
Owji noted that all the projects are implemented with the aim of increasing oil and gas production, raising refining capacity and increasing the production capacity of petrochemical and petroleum products.
“As investment in oil projects helps the national economy, lack of investment in this sector slows the economic growth and causes major challenges,” he added, calling for related organizations to facilitate and take big steps toward making oil investment.
The ongoing projects include the development program of Phase 11 of South Pars Gas Field and the first phase of South Azadegan Oilfield, more than 12 petrochemical and 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 supply more than 80% of the needed equipment and goods.
The Oil Ministry has created about $160 billion worth of investment opportunities in the upstream and downstream sectors of the oil and gas industry, and is ready for all domestic and foreign investors to participate in these projects.
Previous Projects
Last year (March 2022-23), $12 billion worth of oil, gas and petrochemical projects were launched across Iran, all of which have had a direct impact on increasing the production capacity of the country.
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.
In April, a total of 15 oil and gas projects worth $3 billion were launched in the southwestern oil-rich province.
Among the major projects, the first phase of Persian Gulf Hoveyzeh Gas Refining Company was launched for collecting associated petroleum gases from several oil and gas fields.
Also known as NGL 3200, the refinery is located in Hoveyzeh County and seeks to protect the environment by collecting APG from Yadavaran, South and North Azadegan, South and North Yaran, Darkhoein, Sohrab, Jofeir, Susangerd and Band-e Karkheh fields.
The project comprises two phases, with each phase having a daily APG processing capacity of about 7 million cubic meters. The second phase of Hoveyzeh Refinery has so far registered over 80% progress and is expected to be completed within a year. The two phases of the refinery’s annual revenues will be around $500 million.
The plant will inject sweet gas into the national grid while heavy compounds and condensates, as feedstock, will be delivered to provincial petrochemical complexes in Mahshahr Petrochemical Special Economic Zone through a pipeline.
About 85% of the equipment used in the project have been manufactured domestically.
A total of $1.4 billion have been invested in the project and it has generted employment for 5,000 people.
