Iran

Iran’s 14 Billion-Barrel Oil Field Comes Online

22 Mar 2017   Iran

Back from the wilds of Asia. Just in time to witness one of the most critical new field start-ups the global oil sector has seen in years. That’s the South Pars offshore field on the Iran-Qatar border. Which was officially commissioned this week, according to reports from Iran’s oil ministry yesterday. What makes this project so important? Size — with the South Pars field holding more than 14 billion barrels, according to estimates from local engineers. The beginnings for the field will be relatively modest. With Iranian officials saying that production has initially commenced from seven wells, with output to rise to 35,000 barrels per day over the coming week. But given the massive estimates on the size of the South Pars reserves, this is a spot that could see production ramp up very significantly. With a number of other facts about this mega-project showing just how far Iran […]

Is A Russian-Iranian Energy Pact In The Making?

21 Mar 2017   Iran, Russia

In the lead-up to President Rouhani’s visit to Moscow, expected to take place in late March , a plethora of news regarding joint Russo-Iranian energy projects has been circulating on the Internet. A three-year long negotiation process regarding a 100,000 barrels-per-day swap contract is believed to be agreed upon, premised on Iran providing Russia (most likely, Rosneft) oil from Kharg Island or other hubs in the Persian Gulf in return for cash and Russian goods that Iran would “require”. Teheran also woos LUKOIL, currently Russia’s only major oil producer in the Caspian, to participate in swap deals bound for Iran’s Neka Port (in return for Iranian crude provided from Kharg Island or other Persian Gulf hubs), albeit on a much smaller scale at 4000 to 5000 barrels per day. To top it all up, numerous Russian oil companies have committed themselves to developing Iran’s hydrocarbon fields. The lifting of […]

Iran pulls first oil out of South Pars field

21 Mar 2017   Iran

Iran says it pulled its first batch of oil ever out of the South Pars field complex in the Persian Gulf. Photo by Mojtaba Mohseni/Shana March 20 (UPI) — The production of oil from the South Pars field complex in the Persian Gulf has started for the first time, the Iranian Oil Ministry declared. Shana, the Oil Ministry’s news website, reported production from seven oil wells in the South Pars complex began and should reach a net peak capacity of 35,000 per day in about a week. The oil ministry estimates the field, which Iran shares with Qatar, holds more than 14 billion barrels of oil. Gholam-Reza Manouchehri, the deputy managing director at the National Iranian Oil Co., was quoted by Shana as saying production was made possible through a floating production storage and offloading vessel, or FPSO. “By the time the FPSO recovers and processes a certain amount […]

Iran’s Natural Gas Rush Won’t Bring Export Riches — For Now

17 Mar 2017   Iran

Iran is on track to out-produce Qatar, the world’s biggest LNG exporter , at the vast natural gas deposit they share in the Persian Gulf. But as much as they might want , the Iranians won’t have much gas to export because they are likely to use most of the new production themselves. 1. How much natural gas does Iran export? Almost nothing. Iran has 18.2 percent of proven gas reserves, ahead of Russia and Qatar, according to the BP Statistical Review of World Energy. Unlike its competitors, which have built far-flung pipelines and liquefied natural gas plants to reach foreign buyers, Iran exported 8.4 billion cubic meters (300 billion cubic feet) in 2015 while importing 7.5 billion cubic meters the same year. Until recently, it was a net importer, buying or bartering for gas from Turkmenistan and Azerbaijan because its domestic distribution network doesn’t supply the entire country. […]

Iran’s Natural Gas Rush Won’t Bring Export Riches — For Now

16 Mar 2017   Iran

Iran is on track to out-produce Qatar, the world’s biggest LNG exporter , at the vast natural gas deposit they share in the Persian Gulf. But as much as they might want , the Iranians won’t have much gas to export because they are likely to use most of the new production themselves. 1. How much natural gas does Iran export? Almost nothing. Iran has 18.2 percent of proven gas reserves, ahead of Russia and Qatar, according to the BP Statistical Review of World Energy. Unlike its competitors, which have built far-flung pipelines and liquefied natural gas plants to reach foreign buyers, Iran exported 8.4 billion cubic meters (300 billion cubic feet) in 2015 while importing 7.5 billion cubic meters the same year. Until recently, it was a net importer, buying or bartering for gas from Turkmenistan and Azerbaijan because its domestic distribution network doesn’t supply the entire country. […]

Iran Continues To Ignore The OPEC Deal

15 Mar 2017   Iran, OPEC

All data below is in thousand barrels per day and is through February 2017. (Click to enlarge) OPEC crude oil production dropped to 31,958,000 bpd in January. That was a drop of 140,000 bpd. In January OPEC production dropped 930,000 bpd for a two-month total of 1,070,000 bpd. Officially OPEC agreed to cut production by 1.2 million barrels per day beginning in January. So, they are getting close. OPEC’s November production of 33,374,000 represented an all-time high for the Cartel. Algerian production held steady in February after a drop of 33,000 bpd in January. Angola’s production was down 18,200 bpd in February. Ecuador’s production dropped 4,400 bpd in February after dropping 13,000 bpd in January. Gabon dropped 7,000 bpd in February and reached a new low of 194,000 bpd. Iran continues to ignore any requests from OPEC to cut production. Iran’s production was up over 36,000 bpd in February […]

Iran to keep oil cap at 3.8 million barrels a day in second half 2017

15 Mar 2017   Iran

Iran will keep its oil production cap at 3.8 million barrels per day in the second half of 2017, the country’s oil minister said on Tuesday, provided other OPEC members stick to the output level they agreed in November. “If OPEC members stay committed to the agreement (on freezing output), Iran will produce 3.8 million BPD of oil in (the) second half of the current year,” Bijan Namdar Zanganeh was quoted as saying by state news agency IRNA. The Organization of the Petroleum Exporting Countries (OPEC) agreed on Nov. 30 to cut output by 1.2 million bpd to 32.5 million bpd for the first six months of 2017, in addition to 558,000 bpd of cuts agreed to by independent producers such as Russia, Oman and […]

Iran leapfrogs Iraq as India’s no. 2 oil supplier in February: trade data

13 Mar 2017   India, Iran, Iraq

India’s oil imports from Iran rose nearly 17 percent in February from a month earlier as refiners received less crude from key OPEC producers Saudi Arabia and Iraq after an OPEC deal to cut output, shipping data showed on Monday. The jump meant Iran replaced regional rival Iraq as India’s second-biggest oil supplier – a role Tehran used to occupy before Western sanctions were imposed against it over the country’s disputed nuclear program. While Saudi Arabia remained the biggest oil supplier to India, ship tracking data and a report compiled by Thomson Reuters Oil Research and Forecasts showed imports from Iran rose to 647,000 barrels per day (bpd) in February. That was 16.7 percent more than January, and almost trebled from February […]

Despite sanctions relief, Shell still cool on Iranian oil buys

11 Mar 2017   Iran

Royal Dutch Shell has bought only three cargoes of Iranian oil since sanctions were eased a year ago, a small fraction of what it used to buy and an indication of the legal difficulties and high prices that still hamper the trade. The Anglo-Dutch firm did not give a reason for the drop in purchases, which were disclosed in its annual report, and the company declined to comment further. But oil trading sources say Iranian oil is often too expensive and in any case remaining sanctions make dealing with the Islamic Republic a legal minefield. As an example of sanctions-related difficulties, Shell’s filings showed it had to disclose payments of only a few hundred dollars when its employees bought tickets with Iranian airlines. After an accord was reached over […]

As Trump Makes Threats, Iran Makes Friends

8 Mar 2017   Iran, USA

The Islamic Republic is expanding its reach and raising questions over U.S. ambitions to contain the country. Nigerian carpenter Bashir Muhammad has never been to Iran, but he would fight to the death for the country. “If Iran wants our help, we are ready to go and help it, even with our blood,” he said. “Donald Trump needs to know that Iran has followers all over the world ready to help defend it against America.” Touring the narrow unpaved streets of Zaria in Nigeria’s predominantly Muslim north, Muhammad shows Iran’s success in building enclaves of fervent support way beyond the Middle East and the limits of any harsher foreign policy planned by the U.S. president to contain […]

Iran’s Crude-Oil Exports Increase to Level Last Seen in 1970s

8 Mar 2017   Iran

Iran’s crude-oil exports touched 3 million barrels a day for the first time since the 1979 Islamic Revolution. That level, lasting just one day, was reached in the current Iranian month that began Feb. 19, Oil Minister Bijan Namdar Zanganeh said, according to state news agency IRNA. The Islamic Republic’s exports tumbled in 2011 as international sanctions targeted its oil industry, cutting production. Since restrictions ended in January 2016, Iran has recovered quickly, raising output near pre-sanctions levels of about 4 million barrels a day. It’s targeting 5 million a day by 2021 with the help of foreign investors, though none has yet signed a definitive contract. Iran’s crude exports have averaged 2.45 million barrels a day since Feb. 19, Bloomberg tanker-tracking data show. The country in November won an exemption from output cuts agreed on by the Organization of Petroleum Exporting Countries, saying it was still recovering from […]

Iran vs Russia: The Next Natural Gas War

Not everybody attending the Iranian natural gas summit last week in Frankfurt was there for the same reason. While most were gauging the prospects for an opening of major natural gas reserves and liquefied natural gas (LNG) export prospects, others were there for quite different reasons. Take the three representatives from Russia’s gas giant Gazprom (OGZPY), for example. They weren’t there to scout new investment packages. On the contrary… They were there to see just how badly their company’s position was under siege. And it’s no wonder the Gazprom guys looked concerned. From what I saw at the summit, they have every reason to be. For energy investors, on the other hand, the news is very good… Gazprom is in Dire Straits Gazprom may still be the largest natural gas company on the face of the Earth, exporting more gas than anybody else and providing revenues that account for […]

France Plans Loans for Companies Wanting to Invest in Iran

7 Mar 2017   France, Iran

France is working on plans to issue direct loans to companies that want to invest in Iran, Finance Minister Michel Sapin said in a press conference in Tehran. “We are trying to help these companies,” Sapin told reporters at the Ministry of Finance and Economic Affairs in Tehran at a joint press conference with his Iranian counterpart, Ali Tayebnia. “They wil be able to apply for loans, but it’s not active yet. We are working on this.” French companies were among the first to return to Iran after sanctions were eased last year under Tehran’s nuclear deal with six world powers, but officials have said financing issues have hobbled some big infrastructure projects. France’s largest banks have been reluctant to do business with the oil-rich country because of remaining U.S. sanctions, and Iran lacks access to major international lenders. Sapin said he was “confident” that banking relations between France […]

Total in talks to buy Iranian LNG project: sources

28 Feb 2017   France, Iran

Total ( TOTF.PA ) is in talks to buy a multi-billion dollar stake in Iran’s partly-built liquefied natural gas (LNG) export facility, Iran LNG, seeking to unlock vast gas reserves. The French oil major — the first of its peers to strike deals in Iran after sanctions — seeks entry into Iran LNG at a discount to the pre-sanctions price in exchange for reviving the stalled project, two sources with knowledge of the matter said. A third source confirmed Total was in the running for a stake, alongside several other oil majors, but any deal was still some way off. Total declined to comment. Iran’s National Gas Export Co. (NIGEC), a central stakeholder in the project, did not respond to requests for comment by email and phone. “Iran […]

Russia says in talks over Iranian oil purchases

27 Feb 2017   Iran, Russia

Russia has been in talks of buying oil from Iran, Energy Minister Alexander Novak said on Monday, confirming earlier reports. At the sidelines of a economic forum in the Black Sea resort of Sochi, Novak told reportes he expected the deal to be reached “within weeks.” The purchases will be carried out via Promsirieimport, a trading unit of Russia’s Energy Ministry, he said. Last week, Iranian Students’ News Agency (ISNA) reported that Iran will begin selling 100,000 bpd of to Russia within the next 15 days and receive payment half in cash and half in goods and services. (Reporting by Olesya Astakhova; writing Vladimir Soldatkin; Editing by Aleksandar Vasovic)

Iran says oil prices over $55 per barrel harmful for OPEC: Fars

24 Feb 2017   Iran

Iran said on Thursday an increase in oil prices to more than $55 per barrel was not in the interest of OPEC as it would lead to a rise in output by non-OPEC producers, the semi-official Fars news agency reported. “If oil prices specifically surge over $55 or $60 per barrel, non-OPEC producers will increase their crude production to benefit the most from the price hike,” Iranian Oil Minister Bijan Zanganeh was quoted by Fars as saying. “OPEC is determined to reduce its production to help manage the market.” Benchmark Brent crude oil was trading up $1.18 a barrel at $57.02 as of 1429 GMT. The Organization of the Petroleum Exporting Countries agreed on Nov. 30 to cut output by 1.2 million barrels […]

BASF Looks to Invest in Iran’s Recently Opened Energy Sector

24 Feb 2017   Germany, Iran

BASF SE is exploring options for tapping Iran’s recently opened energy market, making it the latest in a long line of German firms looking to expand into the Islamic Republic. Chief Executive Kurt Bock said Friday that the company—through its fully-owned oil and gas subsidiary Wintershall AG—is currently examining business opportunities in Iran after being courted by Iranian authorities. “We are trying to…

Iran to sign oil contract to sell Russia 100,000 bpd: state TV

22 Feb 2017   Iran, Russia

Iran announced on Tuesday it will begin selling 100,000 barrels of oil a day to Russia within the next 15 days and receive payment half in cash and half in goods and services, the Iranian Students’ News Agency (ISNA) reported. Iranian Oil Minister Bijan Namdar Zanganeh provided details about the deal after meeting Russian energy minister Alexander Novak in Tehran, ISNA said. “Of course we were ready to sign the contract tonight but our Russian counterpart was in a hurry and had to go to the airport,” Zanganeh said. He added that a number of Russian companies have already signed memorandums of understanding with Iranian companies. Zanganeh said that Russia will be cooperating with an OPEC decision last November to cut production levels and will be reducing its oil output by 300,000 bpd, according to ISNA. (Reporting by Babak Dehghanpisheh; Editing by Robin Pomeroy)

Iran boasts of robust rig count

21 Feb 2017   Iran

Slightly less than 10 percent of the drilling rigs currently in service in the world are operating in the Iranian oil and gas sector, a petroleum official said. Rokneddin Javadi, a director at the state-owned National Iranian Oil Co. and deputy oil minister, was cited by the Oil Ministry’s official news agency SHANA as stating that more than 140 rigs were in service in Iran. By his count, that’s about 7 percent of the world total. “The drilling industry of Iran is moving forward at an acceptable speed,” the report read. According to oilfield services company Baker Hughes, there were 1,918 rigs deployed worldwide as of January. The company offers no breakdown by country […]

Saudis Lose South Korean Market Share To Iran

South Korea doubled its imports of Iranian crude in January this year from the same time last year, when Iran returned on the international oil market and started exporting growing amounts of oil in a bid to regain market share lost to the Western sanctions. According to preliminary South Korean customs data reported by Reuters , the Asian country, which is also the world’s fifth-largest crude importer, last month imported 1.79 million tons of crude from Iran, which is equal to 424,143 bpd, compared to 859,223 tons in January 2016, when sanctions on Iran were lifted. This development takes market share away from Iran’s key rival, Saudi Arabia. South Korea’s imports of crude oil from Iran’s regional rival Saudi Arabia dropped by 17.3 percent in January compared to December 2016, to 785,084 bpd, as the Saudis are complying with the OPEC supply-deal cut. South Korea’s total crude oil imports […]

Trump rhetoric rattles Iranian business

10 Feb 2017   Iran

As soon as Iran’s nuclear deal with world powers took effect, Majid Zamani and his partners set up an investment boutique with the aim of tapping into the flood of foreign business they hoped would flow into the Islamic republic.Progress was initially sluggish as overseas investors took a cautious approach to Iran, yet Mr Zamani, a US-educated former World Bank consultant, remained confident about Kian Capital Management’s prospects. But the election of Donald Trump and his bellicose rhetoric towards Iran has triggered a surge of uncertainty and forced him and other Iranian businessmen to recalibrate their plans. They no longer expect the foreign investment to flow easily and instead are refocusing on their domestic market.

Iranian Oil Will Not Be Stopped By Trump

8 Feb 2017   Iran

Despite new sanctions by the Trump Administration and an escalating war of words regarding its ballistic missile program, Iran is continuing to push ahead with plans to maintain oil production at around 3.8 million bpd, the level agreed upon at the November OPEC meeting last year. In order to do so, Iran will need to attract billions in new investment, as its current production is based on aging fields and crumbling infrastructure. To maintain the current production level while continuing to export and meet domestic demand, Iran will need at least $100 billion in new investment. New U.S. sanctions, which target 25 Iranian individuals and entities said to be associated with the country’s missile program, is being touted as an “initial step” in the administration’s plan to push back hard on Iran’s regional ambitions, with National Security Advisor Michael Flynn announcing last week that the U.S. was “putting Iran […]

Iran’s missile test ‘not a message’ to Trump

7 Feb 2017   Iran

President.ir/Handout via Iran said on Monday a recent missile trial launch was not intended to send a message to new U.S. President Donald Trump and to test him, since after a series of policy statements Iranian officials already “know him quite well”. Iran test-fired a new ballistic missile last week, prompting Washington to impose some new sanctions on Tehran. Trump tweeted that Tehran, which has cut back its nuclear program under a 2015 deal with world powers easing economic sanctions, was “playing with fire”. Iranian Foreign Ministry spokesman Bahram Qasemi was quoted by Tasnim news agency as saying: “Iran’s missile test was not a message to the new U.S. government. “There is no need to test Mr Trump as we have heard his views on different […]

Iran says U.S. sanctions stop American oil firms taking part in projects

7 Feb 2017   Iran

Iran has imposed no restrictions on U.S. oil firms willing to participate in energy projects in the country but American sanctions make such cooperation impossible, Iran’s deputy oil minister said on Monday. “Iran has not imposed any restrictions on the U.S. companies, but they cannot participate in our (oil and gas) tenders due to the U.S. laws,” Amir Hossein Zamaninia, deputy oil minister for trade and international affairs, was quoted as saying by state news agency IRNA. “Based on the U.S. Congress sanctions, the American oil companies cannot work in Iran,” he added. Iran said on Saturday that it will hold the country’s first tender in mid-February since the lifting of international sanctions to develop oil and natural gas fields. […]

Iran’s Oil Industry Unshaken By New Sanctions

7 Feb 2017   Iran

Days after Iran tested a ballistic missile in a northern desert, newly-inaugurated U.S. President Donald Trump imposed sanctions on individuals associated with the program producing non-nuclear rockets capable of reaching Israel, as well as the United States. The new round of targeted measures will do little to affect Iran’s now-growing oil industry, which has reestablished its standing as the third-largest producer in the Organization of Petroleum Exporting Countries (OPEC) following its economic liberation. The missile test is at least the fifth of its kind since the Middle Eastern nation’s 2015 deal with a group of superpowers to provide international access to the country’s nuclear program in exchange for the removal of crippling multilateral sanctions on its economy. Since January 14th, 2016 – when sanctions against its oil sector were lifted – Iran has defiantly rebuilt its lost oil output, at times at the expense of an OPEC agreement to […]

Iran Reports 15 Billion Barrel Oil Find

7 Feb 2017   Iran

Iran has struck new crude oil reserves totaling 15 billion barrels of which 2 billion barrels are recoverable, according to the managing director of the National Iranian Oil Company Ali Kardor. Along with the crude, there were 1.8 trillion cu m of natural gas in the new deposits, details of whose location were not divulged. Half of this was recoverable, Kardor also said, as quoted by local media. The exploitation of these newly found reserves would require massive investments and modern technology, which Iran does not have at the moment. The discoveries are likely to lead to more tenders targeting international oil companies, which have the technology to tap them. This could turn tricky if the U.S. decides to impose more sanctions against Tehran, after last week the Trump administration slammed the country with fresh sanctions against individuals and entities linked to the special forces of Iran’s army, the […]

Iran says U.S. sanctions stop American oil firms taking part in projects

6 Feb 2017   Iran, USA

Iran has imposed no restrictions on U.S. oil firms willing to participate in energy projects in the country but American sanctions make such cooperation impossible, Iran’s deputy oil minister said on Monday. “Iran has not imposed any restrictions on the U.S. companies, but they cannot participate in our (oil and gas) tenders due to the U.S. laws,” Amir Hossein Zamaninia, deputy oil minister for trade and international affairs, was quoted as saying by state news agency IRNA. “Based on the U.S. Congress sanctions, the American oil companies cannot work in Iran,” he added. Iran said on Saturday that it will hold the country’s first tender in mid-February since the lifting of international sanctions to develop oil and natural gas fields. […]

Iran thumbs nose at Washington on oil

4 Feb 2017   Iran, USA

Iran is still able to get its crude oil to the international market and increase production despite souring U.S. relations, an Iranian official said Friday. The White House is expected to hit Iran with new sanctions in response to a recent missile test after putting Tehran “on notice” earlier this week . Iran secured relief from some Western sanctions in early 2016 after the United Nations confirmed compliance with a multilateral deal that scaled back Tehran’s nuclear research program. Alaeddin Boroujerdi, the chairman of Iran’s Foreign Policy and National Security Commission, said Iran was still secured by the Joint Comprehensive Plan of Action, as the nuclear agreement is called. “Despite enemies’ economic war against Iran, we were able to increase oil export from 1 […]

Iran Oil Minister Says “No Ban on U.S. Oil Firms”

1 Feb 2017   Iran

Iran’s Oil Minister Bijan Zanganeh has said that U.S. oil companies willing to do business in Iran will not be banned from doing so. The remark, quoted by local and international media, comes on the heels of a Friday executive order signed by Donald Trump that suspended the visa processing and entry into the U.S. of people from seven Muslim-majority states: Iran, Iraq, Libya, Somalia, Sudan, Syria, and Yemen. The suspension order will be in effect for three months when it concerns entry into the country. When it concerns the resettlement of refugees from these states, bar Syria, it will be in effect for four months. Refugees from Syria are banned from resettlement in the U.S. indefinitely. The order also covers legal residents of the U.S. who are citizens of any of the seven countries, so if they leave, they won’t be allowed to come back for the duration […]

Is Iran Planning On Breaking Its OPEC Pledge?

1 Feb 2017   Iran

According to a provision of the recent OPEC production deal , the Islamic Republic of Iran is mandated to keep production below a threshold of 3.797 million bpd. Yet this figure is below the regime’s desired long-term goal of 4 million bpd, the level Iran once produced at before sanctions were imposed in 2012. That goal now looks within reach, as Oil Minister Bijan Zanganeh told the press after an Iranian cabinet meeting that crude production had reached 3.9 million bpd . The increase came as Iran restores links with energy markets in Asia and Europe, and is the culmination of a year-long effort to boost production since sanctions on the country’s energy industry ended last January. Does this mean Iran plans to break the rules of the OPEC cut and push to 4 million bpd all year long? It’s possible that the country’s bullish oil administration, led by […]

Lukoil Seeks Middle East Oil Projects for Growth as Iran Opens

30 Jan 2017   Iran, Russia

Lukoil PJSC is seeking opportunities for growth in the Middle East as Iran opens more of its oil fields to international partners, according to the Russian energy company’s regional head. The Moscow-based company plans to add output from the region to existing operations in Iraq and Egypt as long as it finds projects with production costs as low as those in Russia, Gati Al-Jebouri, Lukoil’s head of upstream for the Middle East, told reporters in Dubai. “Iran is our target area at the moment,” Al-Jebouri said. Lukoil is in talks with National Iranian Oil Co. , the Persian Gulf country’s state producer, about the Ab Teymour and Mansouri oil fields in western Iran, he said. Al-Jebouri said he hoped the companies could agree on a common development program for the fields in the first half of the year before proceeding to commercial negotiations and a partnership. Iran has outlined […]

Russia’s Lukoil hopes for Iran oilfield development decision this year

30 Jan 2017   Iran, Russia

Lukoil, Russia’s No.2 oil producer, hopes to reach a decision on developing two new oilfields in Iran and wants to expand its operations further in the Middle East this year, a senior executive said on Sunday. Lukoil is talking with the National Iranian Oil Company (NIOC) on taking part in development of the Abe Timur and Mansuri fields in central-western Iran, said Gati al-Jebouri, vice president and head of upstream operations in the Middle East. “We are in active discussions with them with respect to budget cost structure, and subsequently we will start negotiations on contractual terms if the development plans that we proposed are accepted and agreed by the Iranian party,” Jebouri told reporters on Sunday. […]

Iran May Cancel $7B Pipeline Project With Pakistan

28 Jan 2017   Iran, Pipelines

Iran has said it may cancel its high-profile, US$7-billion ‘peace pipeline’ project with Pakistan over lengthy construction delays, with would deprive energy-starved Pakistan of the some 22 million cubic meters of gas a day it would have received from its neighbor. If negotiations fail to come up with a way to feasibly realize the project, Iran’s National Gas Company Head Hamid Reza Araqi said on Friday that the project could be cancelled entirely. The project has already undergone 15 years of negotiations, beginning as the Iran-Pakistan-India gas pipeline project. Pakistan and Iran finally signed the initial agreement in 2009 , while India withdrew from the deal. The deal was signed by Pakistani President Zardari and Iranian President Mahmoud Ahmedinejad. In accordance with this deal, Iran was to provide 22 million cubic meters per day of gas. Pakistan was slated to begin importing Iranian gas imports in early 2015 , […]

Iran To Export More Oil In February

28 Jan 2017   Iran

Iran’s crude oil and gas condensate exports are expected to rise to about 2.2 million barrels per day in February, thanks to a shipment to Indonesia – the first since sanctions against Tehran were lifted last year. That’s according to an unnamed source that spoke to Reuters. This month, Iran is set to export some 2.16 million bpd. Post-sanction exports reached a high of almost 2.6 million barrels last September, Reuters notes, and this amount has not yet been exceeded. According to figures from Iran’s Oil Ministry, oil exports between March and December 2016 averaged 2.57 million bpd, with the December rate rising to 2.83 million bpd. These figures, however, have not been confirmed by external sources. Earlier this month, Oil Minister Bijan Zanganeh said that earnings from oil and condensate exports had reached US$29 billion in all of 2016, of which US$24.7 billion has been received. What’s more, […]

Europe Chomps Most Iran Oil in Years With Supertankers Due in Days

26 Jan 2017   Europe, Iran

Europe is poised to receive the most Iranian crude in about five years this month in a sign that the Persian Gulf nation may be regaining its share of a market it had lost to sanctions. Arrivals on supertankers will reach 622,581 barrels a day in January, the biggest flows for a single month since at least November 2011, according to ship-tracking and European Union data compiled by Bloomberg. Two Iranian supertankers — Huge and Snow — are en route, bringing about 4 million barrels between them. Sanctions halted all deliveries back in 2012 and they only restarted early last year as the measures were eased. “Iran’s been trying to regain their traditional clients — in countries like Greece and Italy — as a priority,” said Robin Mills, chief executive officer of Dubai-based consultant Qamar Energy, who tracks the nation’s oil trade. “Beyond that, it’s an opportunistic push to […]

Cash Strapped Iranian Oil Industry Braces For Trump Impact

25 Jan 2017   Iran

Iran has been raising eyebrows with its unwavering determination to put its energy industry back on its feet since most Western sanctions against Tehran were lifted last year, and its progress so far is considerable. The news from the last two weeks alone include crude oil output close to 4 million barrels daily ; the National Iranian Oil Company shortlisting 29 foreign companies to take part in oil and gas tenders to take place later this quarter; and the National Iranian Gas Company announcing it wants to build a US$2.5-billion trunk gas pipeline, in partnership with Russian energy firms. Also since the start of January, an insurance business group announced that it has found a way around the remaining U.S. sanctions against Iran, and will now offer almost full coverage for export-bound Iranian crude shipments, excluding U.S.-based sector players. This will help Iran further boost its oil exports and […]

China To Pour $3 Billion in Iran’s Refining Capacity

20 Jan 2017   Iran

China will invest US$3 billion in the upgrade of Iran’s oil refining facilities, Iranian media reported, with the bulk of the investment going into the Abadan refinery. According to Deputy Oil Minister Abbas Kazemi, China has already “opened the financing” for the refinery’s upgrade. Iran’s oil and gas infrastructure has suffered the results of years of neglect because of insufficient maintenance funds during the sanction years as well as access to new technology and equipment. Last week China’s statistical bureau reported that the country’s crude oil imports had increased to 64.4 percent of domestic demand and this is expected to continue, with imports rising by a total 17 percent in the period 2015-2020, with domestic output falling by 7 percent in the period, according to the National Development and Reform Commission. With demand set to rise by 8 percent in the five-year period, the financial commitment in Iran could […]

Exclusive – Global ship insurers to resume near full coverage for Iran oil: officials

17 Jan 2017   Iran

Global shipping insurers have devised a way to ensure nearly full coverage for Iranian oil exports from next month after striking a deal to provide cover without involving U.S.-domiciled reinsurers, officials in Tokyo and London said. The reluctance of U.S. firms to handle Iranian goods had greatly limited the number of reinsurers of cargoes, but the new arrangements – which essentially allow re-insurance of ships without the involvement of U.S.-firms – should boost the number of eligible shipments. That will provide a boon to Iran, trying to raise oil exports after most sanctions were lifted last year, though banking restrictions that remain in place that could cap any major rise in exports. “There will be no U.S.-domiciled reinsurer participation on the 2017 […]

Iran oil minister certain that oil prices will rise: Mehr

16 Jan 2017   Iran

 Iran’s oil minister said that he was confident the OPEC and non-OPEC members would commit to the output cut deal agreed in November, noting that prices of oil would rise further as a result. “I am certain that the OPEC and non-OPEC members will cut oil output as committed. This will remove the oil surplus from the market, balance the demand and supply, and lift prices,” Bijan Namdar Zanganeh was quoted as saying by the Mehr news agency. The Organization of the Petroleum Exporting Countries (OPEC) agreed on Nov. 30 to cut output by 1.2 million bpd to 32.5 million bpd for the first six months of 2017, in addition to 558,000 bpd of cuts agreed to by independent producers such as Russia, Oman and […]

Iran Oil Minister Certain That Oil Prices Will Rise

16 Jan 2017   Iran

Iran’s oil minister said that he was confident the OPEC and non-OPEC members would commit to the output cut deal agreed in November, noting that prices of oil would rise further as a result. DUBAI, Jan 16 (Reuters) – Iran’s oil minister said that he was confident the OPEC and non-OPEC members would commit to the output cut deal agreed in November, noting that prices of oil would rise further as a result. “I am certain that the OPEC and non-OPEC members will cut oil output as committed. This will remove the oil surplus from the market, balance the demand and supply, and lift prices,” Bijan Namdar Zanganeh was quoted as saying by the Mehr news agency. The Organization of the Petroleum Exporting Countries (OPEC) agreed on Nov. 30 to cut output by 1.2 million bpd to 32.5 million bpd for the first six months of 2017, in addition […]

Iran Close To Hitting 4-Million-Bpd Output Target

11 Jan 2017   Iran

When Saudi Arabia initiated the latest OPEC discussion about an oil production cut, Iran insisted that it would only consider joining market rebalancing efforts when it reached a daily output target of 4 million barrels. Now, it is close to hitting the mark, pumping 3.9 million barrels of crude daily, according to a senior official from the state-owned National Iranian Oil Company. After it made sure it was granted an exemption from the OPEC cut agreement, Tehran has not wasted any time marching onwards to revive its energy industry. At the start of the year, NIOC issued a list of 29 foreign companies that were picked to explore and exploit its oil and gas reserves. The list was notably dominated by Asian E&Ps, including four Chinese companies and five Japanese ones. The domination of Chinese and Japanese companies on the list is understandable, as is the reluctance of U.S. […]

Exclusive: Iran capitalizes on OPEC oil cut to sell millions of barrels – sources

7 Jan 2017   Iran

Iran has sold more than 13 million barrels of oil that it had long held on tankers at sea, capitalizing on an OPEC output cut deal from which it is exempted to regain market share and court new buyers, according to industry sources and data. In the past three months, Tehran has sold almost half the oil it had held in floating storage, which had tied up many of its tankers as it struggled to offload stocks in an oversupplied global market. The amount of Iranian oil held at sea has dropped to 16.4 million barrels, from 29.6 million barrels at the beginning of October, according to Thomson Reuters Oil Flows data. Before that sharp drop, the level had barely changed in […]

Total, Shell, Eni Eligible to Bid for New Iran Oil, Gas Projects

4 Jan 2017   Iran

The National Iranian Oil Company (NIOC) revealed that several European oil and gas companies will be eligible to bid for the country’s new oil and gas projects. The National Iranian Oil Company (NIOC) revealed Tuesday that several European oil and gas companies will be eligible to bid for the country’s new oil and gas projects. The list of energy firms included European majors such as Total S.A, Royal Dutch Shell plc, Eni S.p.A and Gazprom. A number of ‘major newcomers’, as described by the NIOC, were Wintershall from Germany, Maersk from Finland, DNO from Norway and CEPSA from Spain. Britain’s BP plc and Norway’s Statoil ASA did not appear on the list of included energy companies. Iran plans to award new projects to the companies it has qualified through a new format of oil sector contracts. As part of this new system, NIOC will set up joint ventures for […]

Iran Qualifies CNPC to Total for Bidding on Energy Projects

3 Jan 2017   Iran

Iran qualified 29 international oil companies to bid in upcoming tenders for crude and natural gas development projects as the Persian Gulf state seeks investment in energy. China National Petroleum Corp., Royal Dutch Shell Plc and Total SA are among the companies that will be invited to bid in tenders, according to a list published Monday on the website of state producer National Iranian Oil Co. Total, along with Lukoil PJSC and the oil unit of Gazprom PJSC , are some of the companies on the list that have already signed preliminary agreements with Iran to study oil fields for potential future development. Iran aims to attract more than $100 billion in foreign investment to speed growth in its energy industry after sanctions cut international companies’ involvement in developing the world’s fourth-largest oil reserves. Since sanctions eased in January, the Persian Gulf producer has doubled exports as crude prices […]

Asia’s November imports of Iranian oil more than double from year ago

29 Dec 2016   Iran

Imports of crude oil by Iran’s four major buyers in Asia in November more than doubled for a second straight month from a year ago, with purchases by India and South Korea more than four times higher. Iran’s top four Asian buyers – China, India, South Korea and Japan – imported 1.94 million barrels per day (bpd) last month, up 117 percent on a year earlier, government and ship-tracking data showed. That was just short of the 2016 peak of 1.99 million bpd hit in the previous month, which was the highest since at least 2010, according to data by International Energy Agency. The volumes were in line with the OPEC member’s crude oil and condensate export plans. Iran was exempted from […]

Iran: There are no guarantees with OPEC

29 Dec 2016   Iran, OPEC

Following an announcement regarding an increase in oil production, Iran’s oil minister said there are no guarantees an OPEC production ceiling will be enforced. Iran is the only party not obligated to a production cut under a late November decision from the Organization of Petroleum Exporting Countries. Under the terms of the deal, Iran can produce around 3.8 million barrels per day. Iran lobbied that it needed freedom to regain a market share lost to international economic sanctions imposed in response to its controversial nuclear program. A multilateral agreement last year eased sanctions on Iran after it agreed to scale back the program. By his account, Iranian Oil Minister Bijan Zangeneh said that, in terms of the OPEC agreement, most deals have fallen short of design. “Though there is no guarantee that OPEC decisions will be enforced,” he was quoted as saying by the […]

Iran sees foreign investors flocking to energy sector

28 Dec 2016   Iran

Iran is drawing in more foreign investors eager to renew work in the energy sector because of the low cost of doing business, a corporate director said. The National Iranian Oil Co. said it expects to award roughly a dozen new agreements for oil and gas developments as the appetite grows for working in Iran’s oil and gas sector. Gholam-Reza Manouchehri, a managing director for the NIOC, told the official Islamic Republic News Agency international energy companies have more motivation for engagement as sanctions pressures ease. “The costs of producing oil and gas in Iran are very low compared to other countries,” he added. Iran under the terms of a production agreement from members of the Organization of Petroleum Exporting Countries can keep working to regain its market share, while other producers are expected to make cuts. The government aims to draw new investors […]

Iran says it sealed Boeing plane deal at half price

26 Dec 2016   Iran, USA

Iran said on Sunday it had negotiated to pay only about half the announced price for 80 new Boeing ( BA.N ) airliners in an order that the American planemaker had said was worth $16.6 billion. Boeing and its European rival Airbus ( AIR.PA ) have both signed huge contracts this month to supply airliners to Iran, the first such deals since international sanctions were lifted under a deal to curb Tehran’s nuclear program. Replacing Iran’s antiquated civil aviation fleet is one of the biggest economic opportunities of the 2015 accord to lift sanctions, which was negotiated by the outgoing administration of U.S. President Barack Obama. President elect Donald Trump is a vocal critic of the pact. Despite Iran’s great need for new planes to replace those from the sanctions era, it has entered the market at a time when Boeing, Airbus and smaller planemakers have all faced a […]

Airbus Finalizes $18 Billion Jet Deal With Iran

23 Dec 2016   Iran

European plane maker Airbus Group SE on Thursday said it had finalized a controversial deal to sell more than $18 billion worth of jetliners to Iran less than two weeks after rival Boeing Co. inked a similar accord. The blockbuster contracts are among the highest profile deals western companies have signed with Iran after world powers lifted sanctions on the Islamic Republic in exchange for curbs on its nuclear program. The plane deals have become a magnet for U.S. critics of closer ties with Iran. U.S. President-elect Donald Trump in the run-up to election voiced concerns about improving ties with Iran, though hasn’t weighed in significantly since his Nov. 8 election. Airbus, the world’s No. 2 jet maker behind Boeing, said it would sell 100 planes to Iran Air, the country’s flag carrier. The deal includes 46 single-aisle A320 planes, as well as 38 A330 and 16 A350 long-haul […]

EU warns Trump not to destroy Iran nuclear deal

22 Dec 2016   Iran

European governments are quietly warning the incoming Trump administration that the US will get the blame if any new economic sanctionson Iran lead to the collapse of the 2015 nuclear deal.  European officials have told the Trump team and Republicans in Congress that there would be little appetite within the EU for a new campaign of international pressure on Iran if the US took steps that precipitated the end of the agreement.  The warnings underline the potential for the Iran deal to become a sharp point of contention between the Trump administration and its western European allies. France, Germany and the UK were all involved in the negotiations, which saw Iran receive sanctions relief in return for limitations on its nuclear programme.

President-elect Donald Trump has been sharply critical of the nuclear agreement, calling it “the worst deal in history”, although he has said little about how he will approach the issue once he takes over the White House.  At the same time, leading Republicans in Congress have said they will push a series of new sanctions bills next year which would impose penalties on Iran over its ballistic missile programme, its support of terrorism or its human rights record. At least some of the proposals will have bipartisan support.  However, Iran views new sanctions as a breach of the nuclear agreement and European governments are worried that new US steps could lead to the deal disintegrating.  “If there is some sort of major provocation from the Iranians, then we might be able to get behind new sanctions,” said one senior European official. “But if new American sanctions cause the deal to collapse, then most people in Europe will say it is the Americans’ fault.”