Siemens Releases 1st Batch of Blocked Oil, Gas Equipment
The first batch of high-tech turbines and compressors blocked by Siemens due to international sanctions was released and unloaded in Assaluyeh, Bushehr Province, on Friday.
Hassan Bouyeri, director of South Pars phases 17 and 18, said the cargo, which the Oil Ministry had bought to upgrade its aging oil and gas facilities, consisted of seven sets of electro-compressors to be installed in the South Pars phases 12, 17 and 18 refineries, Shana reported on Sunday.
According to the official, the equipment was blocked in the UAE and the Netherlands for more than three years.
Nonetheless, following Iranian oil officials' protracted negotiations with Joe Kaeser, president and chief executive officer of Siemens, and Siegfried Russwurm, Siemens' chief technology officer, the much-needed cutting edge compressors were eventually released.
Asked about the rest of blocked turbines and compressors, the official added that during the next two weeks, nine more sets will be sent to Iran.
Oil Minister Bijan Namdar Zanganeh had earlier announced that some 30 turbines and compressors were blocked by Siemens, which would be used not only in South Pars Gas Field facilities but also in Iran LNG and Persian Gulf Star refineries.
Highlighting the importance of the cargo, Zanganeh noted that as soon as the equipment is installed, natural gas and gas condensates production chain will be completed and production capacity will experience a considerable rise.
The US and European Union officially ended decades-old sanctions against Iran on Jan. 16, six months after Iran and the six world powers (the five permanent members of the United Nations Security Council plus Germany) reached an agreement on placing time-bound sanctions on Iran's nuclear program in exchange for sanctions relief.
Collaboration With Siemens
According to Zanganeh, a new chapter of cooperation has commenced with Siemens and joint ventures will be launched sooner or later.
In fact, plans have been devised to promote the domestic companies' long-term cooperation with the German company for manufacturing state-of-the-art oil and gas equipment that meet industry-specific customer requirements in the oil and gas segment, onshore gas production, or gas transport through pipelines as well as in industrial applications.
"Oil Ministry and Siemens had an effective collaboration in manufacturing a large number of gas turbo-compressors in the past in Iran. We need to promote such cooperation, as Siemens' gas turbines and compressors offer long-term efficiency, availability and reliability," he said.
Stressing that Iran requires a wide range of rotary machinery and gas compressors to double its gas production, Zanganeh said, "Siemens can be a perfect business partner for Iran. Needless to say, it is a key supplier of oil and gas cutting-edge equipment, which explains why their investment in Iran's energy sector will definitely yield positive results, create lots of jobs and lead to our country's economic prosperity."
Siemens' managers have pledged to install the high-tech turbines and compressors as soon as possible. It is also planning to expand collaboration with Iranian firms, including Oil Turbo Compressor Company, which manufactures gas compressors, turbo generators and gas turbines.
Russwurm had also told Shana, "There are no legal restrictions anymore" to supply Iran with oil equipment, following the lifting of sanctions. He added that Siemens is closely monitoring investment opportunities in Iran's oil, gas, rail and other transportation sectors.