12233
Oil Industry Needs $30b Investment
Energy

Oil Industry Needs $30b Investment

Oil industry requires $30 billion investment per annum for maintenance, production stability, and development projects, deputy oil minister Mansour Moazzami said Saturday.
Investment has shrunk in the oil and gas industry over the past years, Moazzami was quoted by Shana news agency as saying. Development and maintenance plans were delayed or halted due to lack of finances.
The oil ministry has managed to increase natural gas production capacity by 100 million cubic meters per day (mcm/d) in the current Iranian calendar year (ends March 20) by bringing to the fore projects with higher physical progress. "There are plans to increase gas output by another 100 mcm/d next year from the South Pars gas field in the Persian Gulf," Moazzami stated.
South Pars is the world's largest gas field, shared between Iran and Qatar, covering an area of 3,700 square kilometers of Iran's territorial waters in the Persian Gulf. It adjoins Qatar’s North Field, which measures 6,000 square kilometers.
Although Iran has the world’s fourth largest proven oil reserves and second largest natural gas reserves, UN, US and EU sanctions relating to its nuclear program have significantly affected Iran’s energy sector.
Negotiations between the P5+1 (China, France, Russia, the United Kingdom, the United States and Germany) and Iran to ease those sanctions have been ongoing for almost two years, and the parties’ self-imposed deadline to reach agreement has once again been extended, this time to June 30.
The oil ministry won’t be able to pay staff or invest in boosting production if parliament proceeds with a plan to slash funding, Oil Minister Bijan Namdar Zanganeh said earlier this month.
“The oil industry’s situation is deplorable,” Zanganeh said while addressing the parliament in mid-February. A draft bill reviewed by parliament would cut the ministry’s budget to $3 billion in the Iranian year that begins March 21. That’s down from $13 billion a year earlier.
“This ministry will face problems in meeting the salaries of staff let alone investing in joint oil and gas fields,” Zanganeh said. “How are we to manage the oil industry with such an amount?”
Iran, whose crude exports are banned in Europe because of sanctions, pumped 2.78 million barrels a day of oil in January, down from an average of 3.6 million in 2011.

 

Short URL : http://goo.gl/yTJSUK

You can also read ...

US May Impose Sanctions on China for Buying Iranian Oil
The United States is prepared to impose sanctions on all...
Aramco Investments Aimed at Future Oil Demand
Saudi state oil giant Saudi Aramco remains committed to...
Total to Boost Its Nigeria Output
French supermajor Total will increase Nigeria’s oil production...
Libya’s Oil Security Concerns Increase Freight Premiums
Persistent security concerns over Libya’s oil export capacity...
Call for Expediting Electricity Joint Ventures With Armenia
Measures should be taken to expedite joint projects between...
Seoul Worries Over Condensate Supplies
South Korea is seeking a sanctions waiver from the US to...
50 NIDC Contracts for  Local Manufacturers
The National Iranian Drilling Company has commissioned...
Iran uses a pricing formula whereby gas feedstock is offered to petrochemical plants at 9 cents per cubic meter.
Although Indian investors have signaled their interest in...

Trending

Googleplus