IRAN OIL WILL UP TO 5 MBD

SHANA - 27 November 2021 - The CEO of the National Iranian Oil Company (NIOC) said the company would welcome the arrival of foreign investment, saying: "If for any reason foreign investment is not materialized, different scenarios are on the table and we will not keep waiting for them."

Speaking on Saturday, November 26, Mohsen Khojastehmehr told a press conference: “This company welcomes foreign investment, but if for any reason foreign investment, we have different scenarios on the table and we do not want to waste time.”

He added: "There is actual and potential power in the country and no one can hit its economy, which is the very economic resilience; i.e. full readiness under all sort of circumstances.”

NIOC Eyes 1.5 bcm Gas, 5 mbd Oil Output

The NIOC CEO further stated that there are about 24 gas refineries, more than 130 processing and exploitation units and about 140 onshore and offshore drilling rigs in the country, adding: “Iran has a very good maritime capacity; in addition to being equipped with a fleet of vessels for carrying crude oil, petroleum products and gas condensate with high logistics capacity, we have an acceptable level of seafaring service.”

He noted that NIOC has planned that, God willing, if the assumptions and requirements of these plans are provided, in the next 10 years, daily gas production will reach 1.5 billion cubic meters and crude oil production capacity will reach 5 million barrels. "According to the plan made to achieve this goal, about $90 billion should be invested in the oil sector and about $70 billion for the development of gas fields during these 10 years," he said.

Readiness to enhance refining and export capacity 1.5 times

Khojastehmehr continued: "God willing, by fulfilling the requirements and assumptions of these programs, we are ready to increase the country's crude oil export and refining capacity 1.5 times from before the sanctions. This shows that Iran's underground hydrocarbon capacity is high and we can produce oil and gas. This is Iran's biggest advantage in the oil industry.”

He pointed to the high specialized capacity of the country's manpower in the upstream sector, equal to the top ranks in the world, and added: "The country has a young, agile, knowledgeable and skilled manpower, and everyone in the world recognizes this."

The CEO of the National Iranian Oil Company stated that the geopolitics and geography of the oil industry have made it possible for Iran to achieve sustainable energy security in the region, the Middle East and the world, and this is Iran's advantage. “We have the Persian Gulf, the Sea of Oman and the Caspian Sea, and the political geographical position of the country is such that we will have the easiest way to transfer energy to the region, the Middle East and the world.”

Welcoming foreign investors without sanctions

Khojastehmehr underlined definition of various investment packages in the National Iranian Oil Company, and said: "In the investment portfolio of the National Oil Company, an important share is considered for the foreign sector and this share in the investment portfolio is fully clarified."

He added that the share of hydrocarbon energy cannot be removed from the global energy mix in the short and medium terms due to its thermal value and importance.

Khojastehmehr further said that if the world is looking for stability and security of energy supply, it must participate in its investment, otherwise it will not be able to manage its industries, adding: "Of course, this is not only for the foreign environment, and if domestic industries also need feedstock, they have to use part of their profitability to provide their feedstock and the downstream part is ready to invest in the upstream sector.”

December this year; Exploitation of the first train of Phase 14 onshore treatment plant

Khojastehmehr announced that a very intensive program has been underway for the stability of winter fuel supply for the past two months until the first operational train of the South Pars Phase 14 onshore refinery is put into operation in December this year.

He added that in order to increase the export capacity and better marketing, a demercaptanization project with a capacity of about 80,000 barrels of gas condensate was launched last week and has been put into operation.

South Pars Phase 11 Online Next Year

The CEO of the National Iranian Oil Company also pointed out that by carrying out a jihadi work, God willing, next year the development plan of phase 11 of South Pars will be put into operation for maximum use of gas from the border phase.

Khojastehmehr continued: "It has also been approved that we start the 200-kilometer offshore pipeline for production from 14 wells from the Kish gas field, and now the basic studies for construction of this line have begun."

Talks under way with Foreign Companies

Emphasizing that the investment packages in the oil and gas sector are completely clear, he said: "Fortunately, we have started negotiations with some foreign companies and, thank God, the professional, executive and financial capacity of Iranian companies has reached such a level that investment and development of certain oil and gas projects in the upstream sector are entrusted to domestic companies.”

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