Oil Ministry Lays Out High-Priority Plans

Oil Ministry Lays Out  High-Priority Plans  Oil Ministry Lays Out  High-Priority Plans

The Oil Ministry officially issued a directive on Monday over the high-priority plans of the National Iranian Oil Ministry in the current Iranian year (started March 20).

Based on the directive, raising oil production capacity of the joint West Karun oilfields by 90,000 barrels per day, increasing gas production from joint South Pars gas fields to 567 million cubic meters per day and allocating over $98 million to public utility plans in the oil and gas rich provinces, as well as less-developed states are some of the main high-priority plans the company must pursue this year, Shana reported.

Oil Minister Bijan Namdar Zanganeh has appointed NIOC’s Managing Director Rokneddin Javadi as the director of prioritized plans.

Other significant plans include the revision of new Iran Petroleum Contracts to receive technical knowhow via exploration and production companies in the upstream sector and through general contractors in the downstream sector, in addition to signing six other important oil and gas contracts.  

The IPC has been a subject of debate over the past months. Opponents proclaim the new framework is essentially a concession of hydrocarbon reserves to foreign contractors.

Proponents say the development of oil and gas fields is contingent on using foreign technology and investment.

In December, Tehran unveiled 52 oil and gas projects worth an estimated $185 billion in a two-day conference that brought together more than 1,300 officials and representatives from 335 domestic and foreign companies.

Iran holds the world’s biggest natural gas reserves and the fourth-largest proven crude oil reserves, making the country a hotspot for energy investment after the sanctions relief.

NIOC is due to give a report of its measures every other week.

--- Oil Freeze

Javadi told Mehr News Agency on Sunday that Iran aims to ramp up daily oil export to 2.2 million barrels in mid-summer from the current 2 million, adding that the Persian Gulf country has no plan to freeze its production or export for now.

Stressing that NIOC has already reached the export level (2 million barrels a day) it had promised to the Oil ministry for the post-sanctions era, the official noted that Iran will not stop efforts to increase oil output.

Asked if the country has decided to join oil freeze talks, NIOC’s chief executive said it is up to the ministry and the government to decide.

Javadi earlier underlined that Iran will not join the freeze deal, unless the quota system of the Organization of Petroleum Exporting Countries will come into effect.

OPEC members and some non-OPEC states are due to hold a summit on June 2 for freezing oil production.

Oil has surged more than 70% from a 12-year low reached in January on signs the global surplus will ease as US output declines.