Iran

Iran starts gas exports to Iraq, Iranian official tells IRNA

22 Jun 2017   Iran, Iraq

Iran has begun exporting gas to Iraq, an Iranian official told the state-run Islamic Republic News Agency (IRNA) on Wednesday, after a several years of delays. The neighbors, both members of the Organization of the Petroleum Exporting Countries, initially signed a deal in 2013 for Iran to supply Iraqi power stations, but officials in the past blamed poor security in Iraq for hampering implementation. Exports had started at approximately 7 million cubic meters per day and would eventually reach up to 35 million cubic meters per day, Amir Hossein Zamaninia, the deputy oil minister for trade and international affairs, told IRNA. Iran signed two contracts to export gas, one for the Iraqi capital Baghdad and the other for southern Iraqi city of […]

Iran says OPEC considering deeper output cuts, delegates skeptical

22 Jun 2017   Iran, OPEC

Iran’s Oil Minister Bijan Zanganeh talks to journalists before the beginning of a meeting of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna, Austria, May 25, 2017. OPEC members are considering further oil output cuts but should wait until the effect of the current reduced level of production is made clear, Iran said on Wednesday, hinting at possible further OPEC action after oil sank to a seven-month low. OPEC and allied outside producers agreed on May 25 to extend an existing supply cut into 2018, but oil has declined sharply since on rising production from the United States and Nigeria and Libya, two OPEC members exempt from cutting output. “We are in discussions with OPEC members to prepare ourselves for a new decision,” Iranian oil minister Bijan Zanganeh said after a cabinet meeting, according to the website for the Islamic Republic of Iran Broadcasting (IRIB). “But making […]

Iran: Production cuts difficult for OPEC members

22 Jun 2017   Iran, OPEC

Cutting back on production levels is a difficult task for members of the Organization of Petroleum Exporting Countries, Iran’s oil minister said Wednesday. Iran ranks third among OPEC member states in terms of proven crude oil reserves. Production has been more or less steady since the fourth quarter of 2016 at 3.7 million barrels per day, though that’s up about 8 percent from 2016. While other OPEC members are cutting output in a coordinated effort to balance the market, Iran can increase production as it works to recapture a market share lost to global sanctions. Speaking from Tehran, Oil Minister Bijan Zanganeh said his country was in talks with other OPEC members on current market conditions. With a steady gain in […]

Total Pledges $1 Billion Investment in Iran Gas Field

21 Jun 2017   France, Iran

France’s Total SA said Tuesday it would push forward with a $1 billion investment this summer in a giant Iranian gas field, the first commitment by a Western company to put real money into the Islamic Republic’s re-emerging energy industry. The Paris-based oil giant has been at the forefront of Western energy companies looking to return to Iran after sanctions on its energy industry were lifted in January 2016. Total reached a preliminary agreement late last year with China National Petroleum Corp. and an Iranian company…

Iran expects contract developments with French major Total

20 Jun 2017   France, Iran

Iran is in the final stages of signing agreements with French energy company Total to develop parts of the giant South Pars field, Iran’s energy minister said. The French energy company, under pressure from Washington in the pre-sanctions era , was the source of Iranian frustration after showing a lack of progress in developing parts of the South Pars field in the Persian Gulf. With sanctions pressures easing in the wake of a multilateral nuclear deal, chairman and CEO Patrick Pouyanne said in February that future growth could come from projects in the Islamic republic. Total is among the major European energy companies moving into the Iranian energy sector with the recent signings of memoranda of understanding with its […]

Iran sees gas deal with Total within weeks: minister

Iran expects to sign a long-delayed gas deal with French oil major Total ( TOTF.PA ) in the next few weeks, Iranian Oil Minister Bijan Zanganeh was quoted as saying on Saturday. “Iran and Total are summing up the discussions on signing the contract for the development of phase 11 of South Pars, and this is almost in the final stages,” said Zanganeh, quoted by the oil ministry’s news website SHANA. “The contract … will be signed before the end of the (current) government,” Zanganeh said. Re-elected in May, President Hassan Rouhani is expected to form his new cabinet in August. Total’s chief executive Patrick Pouyanne said in late May that the company planned to conclude the South Pars gas deal before […]

Iran Aims To Develop Its Largest Oil Field

13 Jun 2017   Iran

One of Iran’s top energy priorities this year would be developing onshore and offshore oil fields that it shares with neighboring countries, the official Islamic Republic News Agency (IRNA) quoted deputy oil minister Ali Kardar as saying on Monday. The official named South Pars phase 11 (oil layer) and the Azadegan oil field as priority developments, and Iran hopes to sign contracts for them by the end of the current Iranian year, through March 20, 2018. “The fields are on priority list and the Ministry of Petroleum emphasizes their development, as they are shared fields,” IRNA quoted Kardar as saying. According to the official news agency, the official also noted that new oil contracts worth US$15 billion would be signed with international companies by the end of the Iranian year. While Iran was under the Western sanctions, its neighbors developed their parts of the shared fields with the help […]

Iran prioritizes development of shared oil fields

13 Jun 2017   Iran

Iran aims to prioritize the development of the oil and gas fields that straddle the land and maritime borders with its neighbors. File photo by Maryam Rahmanian/UPI June 12 (UPI) — Tapping into the oil reservoirs straddling Iran’s land and maritime borders are among the top priorities for the year, a deputy minister said. Ali Kardar, the deputy petroleum minister, said neighboring Iraq and Qatar have extracted oil and gas reserves with the help of multinational energy companies and Iran is looking to replicate that success . Iran shares borders with Iraq in the Azadegan oil field and with Qatar in the South Pars oil and gas complex in the Persian Gulf. “The fields are on priority list and the Ministry of Petroleum emphasizes their development,” the deputy minister told the official Islamic Republic News Agency. Highlighting the Azadegan prospect has been commonplace for Iran as it looks to […]

Iran raises oil exports to West, almost on par with Asia

10 Jun 2017   Iran

A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf, Iran, July 25, 2005. To match Exclusive OPEC-OIL/ Iran’s oil exports to the West surged in May to their highest level since the lifting of sanctions in early 2016 and almost caught up with volumes exported to Asia, a source familiar with Iranian oil exports said. Iran, which used to be OPEC’s second biggest oil exporter, has been raising output since 2016 to recoup market share lost to regional rivals including Saudi Arabia and Iraq. While many Asian nations continued to purchase oil from Iran during sanctions, Western nations halted imports, halving Iran’s overall exports to as little as one million barrels per day (bpd). Last month, Iran exported about 1.1 million bpd to Europe including Turkey, almost reaching pre-sanction levels and only slightly below the […]

Iran’s Parliament, Shrine of Ayatollah Hit by Attackers

7 Jun 2017   Iran

TEHRAN—Gunmen and suicide bombers struck Iran’s Parliament and the shrine of Ayatollah Ruhollah Khomeini on Wednesday, killing at least seven people in what officials called a rare terror attack in the country. Islamic State claimed responsibility for the attacks via a statement posted to its official Amaq news agency. It would be the Sunni Muslim terror group’s first attack in Shiite Iran. But the extent of the group’s…

Will This Foreign Oil Giant Grab Iran’s First Post-Sanctions Project?

1 Jun 2017   Iran

Iran’s newly-opened oil patch continues to gain momentum. With the UAE’s Emirates National Oil Company saying this week it has paid $4 billion to Iran to settle a tab for crude, built up during the sanctions period . And the coming weeks may bring an even bigger development for this emerging oil hotspot. The award of Iran’s first post-sanctions petroleum contract — representing the first-ever occasion in modern times that projects here will be available on global-scale commercial terms. The CEO of National Iranian Oil Company, Ali Kardor, said early this week that the government will soon issue its first project tender. For the Azadegan oil field, located near Iran’s border with Iraq. Kardor noted the tender for Azadegan will be released by June 2 — with 29 pre-qualified companies reportedly invited to bid. Iran’s oil minister Bijan Zanganeh confirmed the tender. Saying his ministry is finalizing a contract […]

Iran could see new oil deals by July

31 May 2017   Iran

By July, Iran could sign off on its first post-sanctions contract tied to the development of one of its largest oil fields, the country’s oil minister said. A report from Shana , the official news agency of the Iranian Oil Ministry, stated that Petroleum Minister Bijan Zangeneh “will hopefully” sign the first oil deal developed under post-sanctions contractual terms before Iranian President Hassan Rouhani ‘s first term ends in July. The contract would be tied to the Azadegan oil field, one of Iran’s largest, and “the invitation to tender for development … has started already,” the report read. According to Tehran, the border Azadegan complex holds around 6 billion barrels of recoverable oil reserves. China National Petroleum Corp was […]

Tender for Iran’s Azadegan oilfield has started: oil minister

29 May 2017   Iran

Iran’s Oil Minister Bijan Zanganeh talks to journalists before the beginning of a meeting of the Organization of the Petroleum Exporting Countries (OPEC) in Vienna, Austria, May 25, 2017. The tender for Iran’s Azadegan oilfield has started, the country’s oil minister said on Monday, according to the Islamic Republic News Agency (IRNA). “Right now the tender for developing the Azadegan field is being carried out,” said Bijan Zanganeh. The Azadegan field, in southwest Iran near the border with Iraq, is considered to be the biggest oilfield in the Islamic Republic, IRNA reported. It has 37 billion barrels of oil, Petroleum Engineering and Development Company Managing Director Seyed Noureddin Shahnazizadeh told Mehr News agency this month. (Reporting by Babak Dehghanpisheh; Editing by Joseph Radford)

Iran sees oil production growing through multilateral agreements

9 May 2017   Iran

Iran could see its standing among OPEC members and on the global stage stabilize with global production agreements, a national oil company director said. Iran on Monday started Day 2 of a four-day oil and gas conference in Tehran. The oil ministry’s official news website Shana reported there were thousands of exhibitions “from across the globe” on hand to participate. Gholam-Reza Manouchehri, a deputy director at the National Iranian Oil Co., said Iran has signed more than 20 memoranda of understanding with domestic and international oil companies since sanctions pressured eased in response to a multilateral nuclear deal implemented in January 2016. Production through the arrangements could increase and “the boost is aimed at promoting and stabilizing the country’s footing in the […]

Iran warns Saudi prince for bringing ‘battle’ to Iran remark

8 May 2017   Iran, Saudi Arabia

Iran’s defense minister on Monday lashed back at Saudi Arabia, slamming the kingdom’s deputy crown prince over belligerent comments last week that underscored the deep rivalries between the Sunni and Shiite power. In a wide-ranging interview, Saudi Prince Mohammed bin Salman said there was no space for dialogue with rival Iran due to its Shiite ambitions “to control the Islamic world.” Framing the tensions with Iran in sectarian terms, the prince said the Saudis would not sit and wait for war but would “work so that it becomes a battle for them in Iran and not in Saudi Arabia.” On Monday, Iran’s defense minister Gen. Hossein Dehghan was quoted as saying that Iran would advise against “such a stupidity” because in that case, nothing would be “left in Saudi Arabia except Mecca and Medina,” the two holy cities. Dehghan spoke to Al-Manar […]

Iran Will Go Along With What OPEC Decides on Extending Oil Cuts

6 May 2017   Iran

Oil exports now at about 2.5 million barrels a day: Zanganeh Oil minister says he expects oil to trade at $55 a barrel Iran will go along with whatever decision OPEC makes at its meeting later this month on whether to extend oil production cuts beyond June, Oil Minister Bijan Namdar Zanganeh said. “All indications are that the members want a renewal of the deal and we will go along with what they agree upon,” Zanganeh said Saturday on the sidelines of an energy trade show in Tehran. Producers outside OPEC that joined the oil pact will probably agree to keep the cuts for longer, he said. Crude has surrendered all of its gains since the Organization of Petroleum Exporting Countries agreed in November to cut output. Brent crude, the global benchmark, slumped to a five-month low of $46.64 a barrel in New York on Friday, bringing prices down […]

Iran To Raise Oil Output At Oil Field It Shares With Saudi Arabia

5 May 2017   Iran

The Iranian Offshore Oil Company will increase production at the Foroozan oil field, which Iran shares with Saudi Arabia, by 12,000 barrels daily, the company’s executive director told Iranian media, adding that it will install two platforms at the field soon. Iran has 11 percent of the field—which Saudi Arabia calls Marjan—whose reserves are estimated at 2.3 billion barrels. Besides it, Iran and Saudi Arabia also share another two fields in the Persian Gulf, Lulu and Dorra, respectively Esfandiyar and Arash on the Iranian side. The ramp-up is part of Iran’s efforts to boost its crude oil and natural gas production as soon as possible, challenging the market shares of other OPEC producers in the region, most notably Saudi Arabia. Still, the country is cutting exports after it cleared out what was in storage before economic sanctions were removed and the market share challenge may subside. Iran’s crude oil […]

Iran’s president leans on economic successes

2 May 2017   Iran

Incumbent Iranian President Hassan Rouhani said easing international sections and addressing a high rate of inflation are priorities for the OPEC member state. “The first major issue needed to be addressed was the nuclear talks and bringing to an end international sanctions against the country,” he said of his first term in office. “The second problem was the rampant inflation rate while the third main problem was propping up production in the country.” A moderate by relative standards, Rouhani is campaigning against rival candidates Mostafa Aqa-Mirsalim, Eshaq Jahangiri, Ebrahim Raeisi, Mohammad- Baqer Qalibaf , and Mostafa Hashemi-Taba in the May 19 election. Under Rouhani’s tenure, Iran brought […]

Iran gets positive output cut signals from OPEC, NON-OPEC states

1 May 2017   Iran

Iran’s Oil Minister said on Saturday OPEC and non-OPEC countries had given positive signals for an extension of output cuts, which Tehran would also back. The Organization of the Petroleum Exporting Countries (OPEC)meets in May to discuss oil supply policy. Oil prices fell last week though they closed higher on Friday on growing hope that OPEC might agree to extend production cuts long enough to reduce a global crude glut. “During these last days we received a positive signal from OPEC members and non-OPEC contributors in this agreement for cutting the production for extending this agreement for the second half of 2017,” minister Bijan Zanganeh told reporters. Zanganeh blamed the United States for lack of foreign investment in Iran’s energy sector, citing political pressure on international oil companies. “They (U.S.) […]

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 […]