The National Iranian Oil Company (NIOC) has signed 8 contracts for boosting and maintaining production at Iranian oil fields with domestic companies.
The contracts, worth a total of $1.2 billion, were signed on Monday in the presence of Iranian Minister of Petroleum Bijan Zangeneh, and entail projects in Binak, Solabdar, Lali Bangestan, Gachsaran 3 and 4, Golkhari, Bibi Hakimeh and Ahvaz 2, 3 and 5 fields which are operated by National Iranian South Oil Company (NISOC) in the provinces of Bushehr, Fars, Khuzestan, Kohgiluyeh and Boyer-Ahmad. Also a contract concerning Reshadat Offshore Field operated by the Iranian Offshore Oil Company (IOOC) was included among the 8 contracts.
Contracts of Golkhari, Gachsaran 3 and 4, Binak, Bibi Hakimeh, Solabdar and Lali Bangestan packages were signed with North Drilling Company (Sina Energy Gostar Holding), Iran Offshore Engineering and Construction Company, Petroiran Development Group, Mashin Sazi Arak, Qeshm Oil and Energy Industries Partnership and Marunkaran, the National Iranian Drilling Company and Jahanpars Engineering and Construction Company. Also Ahvaz 2, 3, 5 and Reshadat packages were signed with Khatam Al-Anbia Headquarters.
The plan to maintain and enhance oil production in the scope of activities of three companies affiliated to the National Iranian Oil Company (NISOC, IOOC and Central Iranian Oil Fields Company) cover 7 provinces of Kermanshah, Ilam, Khuzestan, Kohgiluyeh and Boyer Ahmad, Bushehr, Fars and Hormozgan and include 33 projects (29 projects in the onshore sector and four projects in the offshore sector). The first contract of the packages was signed in September 2018 for the Siri project (Sivand and Esfand fields) operated by the Iranian Offshore Oil Company.
Zangeneh Announces Creation of new Capacities for Oil Export, Money Transfer under Sanctions
Iranian Minister of Petroleum Bijan Zangeneh announced Iran's creation of new capacities in the field of oil sales as well as transmission and receiving oil money despite the sanctions on the country.
Addressing a ceremony to strike 8 oil contracts with local companies on Monday, Mr. Zangeneh also voiced his ministry’s readiness to welcome foreign companies willing to operate in Iran’s oil and gas projects.
"If foreign companies come, we will cooperate with them, but on a new basis," he said in an address at the ceremony.
"Sanctions are mortal and will be gone, but we will not give up on the capacities we have created and we will organize and strengthen them," he said. “Today's capacity to sell oil, transfer oil and receive oil money is in no way comparable to what was the case back in March 2018 and the beginning of the sanctions. We will not allow these capacities to be lost. We organize these capacities.”
The Minister of Petroleum pointed to the capacity created in the contracting and equipment manufacturing sector during this period, and added: "Of course, if foreign companies come, we will cooperate with them, but this does not mean that we will abandon what we have achieved. We will talk to them on a new basis that is much more stable and of a higher level.”
NIOC to Issue Rls. 20,000bn of Bonds to Finance Oil Projects
The CEO of the National Iranian Oil Company said NIOC was planning to issue Rls. 20,000 bn worth of bonds to finance projects aimed at production enhancement and maintenance of oil fields in Iran.
Addressing a ceremony to sign contracts for production enhancement and maintenance of NIOC on Monday, Masoud Karbasian said the project was put on the agenda by Iranian Minister of Petroleum Bijan Zangeneh and was endorsed by the Economic Council back in 2018.
Afterwards, 10 contracts were signed in the same year to be followed by 13 others. This time, 8 more contracts have been signed with a total value of $1.2 billion and with the aim of enhancing production by 95,000 b/d.
He said that 33 packages of the plan to maintain and increase oil production include 29 onshore projects and four offshore projects, and expressed hope that with the full implementation of 33 packages, the country's daily oil production capacity will increase by about 280,000 barrels.
Signing contracts with 22 Iranian firms
Referring to the maximum use of the potential of Iranian companies in the implementation of these projects, Karbasian pointed to the presence of 17 competent companies in the field of exploration and production, 16 drilling companies and 22 EPC companies ranked first in Iranian tenders. “A total of 31 contracts have been awarded to 22 Iranian companies.”
He estimated the total value of the contracts awarded in these 31 projects at $3.7 billion.
The CEO of the National Iranian Oil Company, referring to the average of 30% progress of 10 contracts in the first phase of the maintenance and enhancement of oil production, said: "The progress of projects is closely monitored through NIOC’s project management system.”
72% Share of Domestic Manufacturers
Karbasian stated that another advantage of this plan is the maximum share of domestic manufacturing, and added: "By implementing the localization plan of 10 groups of widely-used oil items, which started off in the Iranian Ministry of Petroleum back in 2014, it is possible to tap the potentialities of Iranian manufacturers in three parts: wellhead equipment, downhole equipment and seamless pipes."
He said the share of domestic production in the plan to maintain and enhance oil production is 72%, and said this share is expected to reach more than 80% by the end of the contracts.
According to the official, 18 drilling rigs are currently active in the plan, which will increase to 55 rigs with the activation of all 33 contract packages.
Karbasian said the allocation of 4% of the contracts’ value to fulfill social responsibilities is another benefit of this national plan.