Iranian President Hassan Rouhani officially launched Azar Oil Field Development Plan and the ethane recovery unit of Kangan Petro-Refining Company via videoconference. Rouhani also Orders Construction of Key Petchem Project.
Azar Joint Field Development Project, known as the most complex oil field in the country, has officially come online by order of the President via video conference.
Providing national interests, creating employment opportunities for local forces and economic prosperity and infrastructure development in Ilam are among the prominent goals of implementation of the plan.
Azar oil field is located in Anaran exploration block in Ilam Province (southwest of Iran and 25 km from Mehran County) on the border of Iran and Iraq.
Iran Launches Major Petchem Feedstock Project
Iranian President Hassan Rouhani officially launched the ethane recovery unit of Kangan Petro-Refining Company via videoconference.
The unit is touted as the largest feedstock supply unit for petrochemicals in the country.
The CEO of Kangan Petro-Refining Plant, Hamid Ghaderi, said: "This unit will generate $1 billion annually for the country."
Noting that the ethane recovery unit of Kangan Petro-Refinery has been built with a capital of $970 million, he said: “This unit is the first phase of Kangan Petrochemical Company with an annual production capacity of 3.5 million tons.”
He pointed out that the ethane recovery unit receives 21 million tons of feedstock annually from phase 12 of South Pars gas field, adding: “1.75 million tons of ethane, one million tons of propane, 500,000 tons of butane and 250,000 tons of pentane can be produced in this production unit annually which could bring in about $1 billion in revenue for the country.”
The CEO of Kangan Petro-Refining Company, emphasizing that 100% of the design, engineering and commissioning of all units and departments, including basic engineering and detailed engineering of the project, has been carried out by Iranian companies, continued: “In the implementation of this project, maximum effort has been made to make use of Iranian goods and 65 percentage of the equipment for the project was supplied from within the country.”
The official father added that the project has created employment for 3,500 people during the construction period and 622 others during the operation period.
Minister Rejoices over Iran Activities in Joint Oil Fields
Iranian Minister of Petroleum Bijan Zangeneh said Iran’s current status in joint oil and gas fields is favorable, saying the country is currently producing 400,000 barrels per day of crude oil in the West Karoun Oilfields Cluster.
Addressing a virtual ceremony to launch three major oil and petrochemical projects on Monday, Mr. Zangeneh said: “We are in a good situation in all joint fields compared to our neighbors; production capacity of crude oil in the joint fields of West of Karoun has increased from 70,000 barrels per day to 400,000 barrels."
He said Azar and the ethane recovery unit of Kangan Petro-refinery were financed by $2.7 billion.
Pointing out that the Azar joint field in Dehloran region of Ilam Province is the first project to be inaugurated on Monday, he said Azar field was one of the joint fields that had not been developed and its output was zero.
He added that the Azar field project has been implemented in two phases, the first phase of which was implemented with a daily production of 30,000 barrels in May 2017.
“The second phase of this project has come online with a daily production of 65,000 barrels since December last year,” he added.
He announced the cumulative output of the field at about 36 million barrels of oil, and said $1.6 billion of the cost of the development plan of this field has been returned.
Zangeneh further added that the ethane recovery unit of Kangan Petro-refinery was financed with $1 billion with a production capacity of 3.5 million tons of output per year.
Addressing the President, he said that this project in the petrochemical production chain is a parent project of feedstock, adding that the total capacity of feedstock projects of petrochemical units that have been inaugurated this [calendar] year is 11.2 million tons per year.
The Iranian Minister of Petroleum further announced the opening of a petrochemical feedstock supply project in the coming weeks, and noted: “Ethane recovery units of Bushehr, Bidboland Persian Gulf Refinery, Kangan Petro-Refinery and Parsian Sepehr Refinery in Assaluyeh will come on stream this year or the next. The NGL 3100 and 3200 projects will also come online next year, too.”
He stated that four projects were implemented in the downstream of the Kangan Petro-Refinery: a 1-million-ton olefin unit and three 300,000-ton polyethylene production units with an investment of $1.5 billion with a total progress of 40%.
The Minister of Petroleum said: "If there were no sanctions, all these projects could have been implemented together, and the reason for the delay in implementation of these projects is the imposition of sanctions."
At the end of his address, Mr. Zangeneh said that Kian Petrochemical Project was to be financed by Parsian Oil and Gas Holding as well as Petrofarhang Holding by nearly 2 billion dollars of investment.
Noting that the contract for implementation of this project has been signed for several months and its initial operation has begun, the Minister of Petroleum added: "An important feature of this project is receiving a set of combined liquid and gas feedstocks with a capacity of 2.5 million tons. This is a huge project and we have four projects of this kind.”
Rouhani Orders Construction of Key Petchem Project
Iranian President Hassan Rouhani has officially broken grounds for construction of a strategic petrochemical project on Monday morning via videoconference.
The CEO of Parsian Oil and Gas Development Group called Kian Petrochemical project one of the most strategic petrochemical plants in the country in line with the sustainable development of the petrochemical industry and creation of highly value-added projects, and said construction of the first phase of the facility officially began on Monday, February, 29.
Vahid Mahmoudi stated Kian Petrochemical project includes a set of olefin and downstream units that have a high added value in the petrochemical industry compared to existing chains.
He added: "Kian Petrochemical Plant is designed in two phases, the first phase will be heavy olefin and polyethylene units and the second phase will be propylene oxide, ethyl benzene and styrene monomer units and oxo alcohol units; the total investment of phases one and two is about 3.5 billion euros."
The CEO of Parsian Oil and Gas Development Group pointed to the implementation of this project in the second phase of Assaluyeh Petrochemical Special Zone, and said 60% of this company belongs to Parsian Oil and Gas Development Holding and 40% belongs to Petrofarhang Holding.
27% return on investment
Mahmoudi stated that the contractor of the Olefin unit is Oil Industries Engineering and Construction (OIEC) which has developed it under an EPCC contract, adding that the amount of this contract is 1 billion and 360 million euros and the license of this unit is from the Germany’s Linde.
The CEO of Parsian Oil and Gas Development Group Company, pointing out that 450,000 tons of ethylene and 450,000 tons of heavy polyethylene will be produced in the heavy polyethylene unit, continued: Nargan Company is the contractor of this unit under an EPCC contract with an investment of about 8. 5 million euros.
Mahmoudi stated that the rate of return on capital of Kian Petrochemical Plant is 27%, and said: "This project is one of the most attractive projects in terms of rate on return and in terms of unit size and having a collection from olefins to heavy and low polyethylene products, it is one of the largest projects ever built [in the country]."
Emphasizing that the priority of his holding is to use domestic forces, Mahmoudi said: "In the implementation of Kian Petrochemical project, maximum efforts will be made to use domestic production, and this project, as one of the largest petrochemical projects in the country, will create employment for about 3,000 people during construction and operation phases."
Total Oil Output of Azar Joint Field at 36mb
Iran has so far produced over 36 million barrels of crude oil from Azar join oilfield, the executor of Azar Field’s development project announced.
Keyvan Yarahmadi, who is in charge of the project at the Petroleum Engineering and Development Company (PEDEC), said the contract for the development of Changouleh field, which is adjacent to Azar, will be signed in the near future.
Speaking on Monday at the official opening ceremony of the Azar joint field development project, which is being held by video conference in the presence of the President and the Minister of Petroleum, he said the development plan of this field, which is shared with Al-Badra field in Iraq, has been handed over to a consortium consisting of pension funds and welfare of oil industry employees and Oil Industries' Engineering and Construction Group (OIEC).
Yarahmadi said the amount of oil in-place in the Azar field is estimated at roughly 4.3 billion barrels, and said the extractable reserves of this field, which is a light oil with an API grade of about 32 to 33, is estimated at more than 400 million barrels in a 40-year exploitation period.
Prior to today’s ceremony, production of the field was 30,000 b/d which has now increased by 65,000 b/d.
In the field of technical issues, he pointed to the participation of more than 75% of the Iranian companies in the project, which was achieved by relying on the strength and capabilities of domestic contractors and developers and in the form of assigning over 150 small and large contracts to them.