Iran

Iran sees oil reserve potential growing with new discoveries

25 Apr 2017   Iran

Discoveries in the Persian Gulf of petroleum reserves may boost Iran’s ranks in terms of global capacity, a national director said. Ali Vakili, identified by the Iranian Oil Ministry’s official news agency Shana as a managing director for the Fuel Conservation Co. of Iran, told delegates at a domestic oil and gas conference during the week that Iran’s global position as an energy producer could expand. “A golden triangle of oil deposits has been recently discovered in the Persian Gulf, which will most probably improve the country’s rank in holding oil reserves in the world,” Shana reported . “The official said Iran sits atop the world’s fourth largest oil reserves, which may become even bigger with new discoveries.” The director offered no […]

Russia To Help Build 2 Nuclear Power Plants In Iran

20 Apr 2017   Iran, Nuclear, Russia

Russian experts will help the Atomic Energy Organization of Iran build two 1,000-MW nuclear power plants, Iran’s Energy Minister told media. Construction will start soon, Hamid Chitchian also said, adding that a third joint power plant construction project with Russia, which will have a capacity of 1,400 MW, has already begun. The announcement is part of deepening ties between Moscow and Tehran, expanding into a growing number of industries, from oil to defense and fisheries. Earlier this year, Russian Energy Minister Alexander Novak said that Russian companies are “keen” on strengthening their ties with Iran, not least in the power plant construction sector. Energy-hungry Iran plans several more such projects, and it’s likely that Russian companies will be among the preferred bidders. Yesterday, Iran’s ambassador to Russia said in a statement that Tehran would be happy to strengthen bilateral ties further, noting their joint stance on the political situation […]

Iran May Keep Same Oil Output If Others Extend Cuts, Kuwait Says

19 Apr 2017   Iran

Kuwait oil minister says Iran cooperating with OPEC on output Iran’s oil production has stabilized after rising in 2016 Iran will probably be allowed to keep its oil production unchanged if OPEC decides to extend its six-month agreement on output cuts beyond June, Kuwaiti Oil Minister Issam Almarzooq said. “I think they will keep the same level if the deal is extended,” Almarzooq, who chairs the committee monitoring the cuts, said Wednesday in an interview in Abu Dhabi. Kuwait was the first country to call for extending the production cuts beyond June. Oil prices will increase as demand improves, chipping away at oil inventories in the second half, he said. Iran was allowed to increase its output under the deal as the nation rebuilds from international sanctions that crippled its energy industry. Since sanctions were eased in January 2016, Iran’s oil production has climbed 35 percent, according to data […]

Iran Boosts Gas-Output Capacity With New Projects at Giant Field

18 Apr 2017   Iran

Iran boosts output by inaugurating six projects at the giant South Pars offshore field. (Bloomberg) — Iran, holder of the world’s biggest natural gas reserves, boosted output by inaugurating six projects at the giant South Pars offshore field. The country raised total production capacity at South Pars to 570 million cubic meters a day of gas, putting it almost on par with neighboring Qatar, which produces from an adjacent portion of the same deposit, Oil Minister Bijan Namdar Zanganeh said Sunday at a ceremony in the port city of Assaluyeh. Iran invested $20 billion to complete the six projects, or phases, President Hassan Rouhani said at the event. Iran is on track to out-produce Qatar, the world’s biggest exporter of liquefied natural gas, at the Persian Gulf deposit. Iranian officials want to gain market share for gas shipments and attract foreign investment, even as U.S. President Donald Trump ratchets […]

Iran boasts of economic break from oil

18 Apr 2017   Iran

During the first 11 months of the Iranian calendar year, non-oil exports have grown more than 30 percent, state media reported Monday. Ali Khamenei , the ruling cleric in Iran, has called for a so-called resistance economy, one that limits exposure to international market shocks and sanctions pressures in part by weaning itself off oil for revenue. According to the official Islamic Republic News Agency, non-oil exports for the 11 months ending March 20 were up 33 percent. IRNA reported that, under President Hassan Rouhani , there were three unidentified “unfinished” national development plans yet to be started that could contribute to the resistance economy. With more than a dozen candidates, including former President Mahmoud Ahmadinejad , entering the race to challenge Rouhani, the English-language Iran […]

Iran Ready To Join OPEC’s Production Cut Extension

18 Apr 2017   Iran

Iran, which has been exempted from the OPEC oil production cut agreement closed last November, is now ready to join the initiative as long as there is consensus among the cartel’s members. That’s what Oil Minister Bijan Zanganeh told media yesterday, adding that most OPEC members seem to be already in favor of the extension. The minister did not go into any details as to how much Iran would be willing to cut off its daily output or from what monthly production level the cut will be effected. The remarks suggest that Iran has reached an oil output level that it is comfortable with for the time being, or that serves as a sufficient base for it to continue to ramp up production until May 25, when OPEC will meet in Vienna to decided on the extension. The country was exempted from the initial agreement and allowed to increase […]

Iran vows to match Qatar in terms of overall energy production

15 Apr 2017   Iran, Qatar

Iran says it could match Qatar with it production goals. Both sides share in the development of a giant Persian Gulf field that Iran calls South Pars. File photo by Maryam Rahmanian/UPI. April 14 (UPI) — Iran could go tit-for-tat on production trends with Qatar given recent developments at a Persian Gulf oil and gas field, the Iranian oil minister said. Iran’s Oil Ministry last month said production started from the oil layer in the South Pars field complex in the Persian Gulf for the first time. Using a floating production and offloading vessel, or FPSO, the ministry said production could reach a net peak capacity of 35,000 barrels per day at some point this month. The oil ministry estimates the field, which Iran shares with Qatar, holds more than 14 billion barrels of oil. Oil Minister Bijan Zangeneh said on the sidelines of a conference with the Iranian […]

Iran Ramps Up Oil Output As OPEC Production Falls

14 Apr 2017   Iran

The OPEC Monthly Oil Market Report is out with OPEC’s crude oil production numbers for March 2017. All data is through March 2017 and is in thousand barrels per day. (Click to enlarge) Looking at the above chart it seems obvious what most OPEC nations were doing. They announced in the summer of 2016 that there would likely be quota cuts beginning in 2017. And those cuts would be a percentage of their current production. So everyone began making heroic attempts to increase production by the end of 2016. Now, after everyone who felt that they should cut, has cut, they are right back to the level that they were at before the cuts were proposed. (Click to enlarge) There is always a considerable difference between what the OPEC nations say they are producing and what the “Secondary Sources” say they are producing. The March MOMR had Saudi producing […]

Iran sees foreign investments in energy sector stable

11 Apr 2017   Iran

Iran expects more, not less, foreign investments in its oil and natural gas sector because of fewer sanctions restrictions, the oil minister said. Iranian Oil Minister Bijan Zangeneh said foreign companies will invest in the nation’s energy sector to the fullest extent of the law. Few outside companies are working closely with Iran, though the minister said he doesn’t expect investments to wane. “If we are told that cooperation with a certain company is banned based on the law, we would follow suit, but this must first become ascertained for us before we stop our interactions with them,” he was quoted by SHANA, the ministry’s official news agency, as saying. The National Iranian Oil Co. in December said it expected to award roughly […]

Iranian oil exports dip in March, floating storage almost cleared

11 Apr 2017   Iran

Exports fall to 2.35 million b/d Flows to India jump but relations could sour over Farzad B row Floating storage barrels dwindle Fall in European spot demand from stiffer competition Iran’s crude oil and condensate exports in March fell slightly from the previous month as refinery runs picked up but the OPEC producer has managed to clear almost all of its oil in floating storage. Iran, which is allowed special status to increase output slightly under the recent OPEC deal, could be switching its focus to improving returns for its oil from maximizing its market share over a year after coming out of the sanctions doldrums, as its output begins to plateau. Total estimated export volume on Aframaxes, Suezmaxes and VLCCs from Iranian ports in March dropped to 2.35 million b/d from 2.41 million b/d in February, data from cFlow, S&P Global Platts trade flow software, showed. Article continues […]

Iran security body reviewing new IPC oil contracts: minister

10 Apr 2017   Iran

DUBAI Iran’s top security body is still reviewing the Iran Petroleum Contract (IPC) model, Oil Minister Bijan Zanganeh was quoted as saying on Sunday, as the contracts aimed at attracting foreign investors appear to face fresh delays. In January, Iran named 29 companies from more than a dozen countries as being allowed to bid for oil and gas projects under the IPC, which Tehran hopes will boost production after years of sanctions. But the IPC model has been delayed several times due to opposition from hardline rivals of President Hassan Rouhani. “The new oil contracts (IPCs) are currently being reviewed by the Supreme National Security Council,” Zanganeh told parliament, the students’ news agency ISNA reported. Zanganeh did not elaborate or say how long the review might take, ISNA and other agencies reported. The IPC model ends a buy-back system dating back more than 20 years under which Iran did […]

Oil Heads Higher As Iran And Saudi Arabia Draw On Reserves

7 Apr 2017   Iran, Saudi Arabia

Oil is ticking higher today, as speculators continue to bet on the prospect of the market tightening. As Nonfarm payrolls beckon tomorrow, hark, here are five things to consider in oil markets today. 1) While total global floating storage is ticking lower, it is still holding above 100 million barrels. Two areas where we are seeing it gradually drawn down is off Singapore / Malaysia, and in the Persian Gulf. After being over 30 million barrels as recently as October, Iranian floating storage has been siphoned to supplement exports – underscoring the Persian Gulf state’s struggles to boost domestic production. This week we have seen Iranian barrels drop to 5 million barrels, while barrels offshore of United Arab Emirates have halved in the last week, dropping to just under 10 million barrels. (Click to enlarge) 2) We have seen a distinct change in appetite from China, as March deliveries […]

Iran struggles to expand oil exports as sea storage cleared

6 Apr 2017   Iran

Iran has sold all the oil it had stored for years at sea and Tehran is now struggling to keep exports growing as it grapples with production constraints, shipping and oil sources say. Since the easing of international sanctions in January 2016, Iran tried to make up for lost sales by releasing millions of barrels parked on tankers offshore. Tanker tracking and oil sources said Iran had sold its last stocks from the floating storage in the past two weeks. Much of the oil stored was condensate, a very light grade of crude. With no more stocks at sea, Iran has lost a vital resource that had propped up exports. “We do think that (floating storage) has been the […]

Boeing Agrees to First Plane Sale to Iran Under Trump

4 Apr 2017   Iran

Boeing Co. has agreed to sell planes to an Iranian airline for the first time since U.S. President Donald Trump, a critic of closer ties with Tehran, took office. Boeing said it had signed a memorandum of agreement with Iran Aseman Airlines for the potential sale of up to 60 Boeing 737 Max single-aisle planes. Plane deliveries would begin in 2022, the company said Tuesday. The transaction, which still needs to be…

After energy agreement, Iran sees growing trade with Russia

30 Mar 2017   Iran

Boasting that it’s a result of a multilateral nuclear deal, OPEC-member Iran said its trade volume with oil-rich Russia could pass the $10 billion mark. Iranian President Hassan Rouhani hosted a dinner Tuesday night in Moscow for Iranian nationals living in Russia. As a result of improved opportunities, annual trade between the two counties is on pace to pass $10 billion. “It takes several years for the people to know all the aspects of the Joint Comprehensive Plan of Action ,” the Iranian president was quoted by the official Islamic Republic News Agency as saying. Iran secured relief from sanctions under the multilateral deal in exchange for agreements to scale back its nuclear research program. Iran and Russia […]

U.S. Lawmakers Back Measures to Protect Israel By Punishing Iran

29 Mar 2017   Iran, Israel

Aiming to prove their commitment to Israel, senior U.S. lawmakers are backing bipartisan legislation that would slap Iran with new sanctions while maintaining rigorous enforcement of the landmark nuclear deal. The measures, unveiled ahead of the opening of the annual American Israel Public Affairs Committee conference, seek to build consensus among Republicans and Democrats who are so often bitterly at odds on domestic issues. “The United States will stand with Israel,” Senate Majority Leader Mitch McConnell said at the conference Tuesday. But the Kentucky Republican criticized the nuclear agreement as a “windfall” for Tehran that prevented the U.S. from taking more aggressive steps against Iran. “But today we can take a different approach,” McConnell said. “Today, we can combat Iran’s capability to fund, arm, and train terrorists like Hezbollah, Hamas, and its proxies in Syria.” In exchange for Tehran rolling back its nuclear program, the U.S. […]

Iranian oil minister says global oil cuts deal likely to be extended

28 Mar 2017   Iran, OPEC

Iranian Oil Minister Bijan Zanganeh told reporters on Tuesday that a global oil cuts deal is likely to be extended, but that time is needed to discuss the subject thoroughly first. “It seems that most of the OPEC and non-OPEC (countries) are going to extend the agreement, but time is needed to evaluate the situation and to have face-to-face meetings and discussions with others,” Zanganeh, who was visiting Moscow, said. Asked whether Iran would be ready to cut its own output under the possible extension, Zanganeh said: “I think it is necessary that all members comply with their commitments.” Iran’s current oil production stands close to 3.8 million barrels per day, he said. Zanganeh is part of a delegation led by Iranian President Hassan Rouhani which is […]

Foreign Investors Flock to Iran as U.S. Firms Watch on the Sidelines

28 Mar 2017   Iran

After years shunning Iran, Western businesses are bursting through the country’s doors—but U.S. companies are noticeably absent. Dozens of development projects and deals have been hammered out since Iran’s nuclear accord with world powers in 2015 lifted a range of sanctions. Among them, France’s Peugeot and Renault SA are building cars. The U.K.’s Vodafone Group PLC is teaming up with an Iranian firm to build up network infrastructure. Major oil companies including Royal Dutch Shell PLC have signed provisional agreements…

Will Iran Cut Production If OPEC’s Deal Is Extended?

25 Mar 2017   Iran

Oil prices fell this week on oversupply concerns and while certain OPEC members have showed interest in extending the current deal, a new deal is far from certain (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) (Click to enlarge) Friday, March 24, 2017 Oil prices fell slightly this week on another crude inventory build in the U.S., although the report was slightly tempered by another decline in gasoline stocks. Saudi Arabia’s credit rating cut. Fitch Ratings slashed Saudi Arabia’s credit rating by one notch to A+ from AA- over concerns about public finances. The downgrade comes as Saudi Arabia and other major oil producers struggle with the dilemma of allowing oil prices to sink lower or make painful production cuts in order to keep prices elevated. Fitch also questioned whether or not the proposed economic reforms in Riyadh will […]

Saudi Arabia may insist on Iran oil output cuts to continue OPEC deal: sources

23 Mar 2017   Iran, OPEC, Saudi Arabia

Geopolitical rivals Saudi Arabia and Iran may be headed for another OPEC showdown, as the producer group enters negotiations over extending oil production cuts in force since January.  Saudi Arabia may demand that Iran, which is allowed a slight rise in output under the deal, commit to an output reduction as a condition of continuing the cuts, people familiar with the kingdom’s thinking told S&P Global Platts.  The provision is among several that Saudi Arabia, tired of seeing its market share eroded as it bears most of the burden of OPEC’s agreed cuts, is likely to come to the table with, sources say. These include stipulations on members who have exceeded their quotas and exempt members nearing full production capacity, notably Nigeria.

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 […]