Iran's energy sector review

Iran's energy sector, like other industrial sectors experienced low growth in 2015, despite a relatively boom in the previous year, mostly because of the budget shortage due to plunging the oil price, which the country heavenly depends on petrol dollars. The International Monetary Fund estimated that Iran's oil revenues decreased by $20.1 billion to around $35 billion the current year, while GDP growth is estimated to be about -0.5 percent to 0.5 percent. According to OPEC's statistics, Iran's heavy oil price almost halved in 11 months of 2015 to about $50/barrel. However, according to Iranian media outlets, the figure even plunged to below $30/barrel in min-December. Coming to upstream sector, the country's oil output remained almost unchanged, while the gas condensate output increased slightly. In total, according to the US Energy Iran's total crude oil production (including gas condensate) stood at 3.3 million barrels per day in 9 months of 2015, indic

One of major companies, offering about 30 percent of total offered oil and gas projects to foreigners in framework of new designed contact, called Iran Petroleum Contract (IPC), is Iran's Central Oil Fields Company (ICOFC). Managing Director of ICOFC Salbali Karimi told Mehr News Agency on Dec.23 that the total value of offered projects is above 10 billion euro. During last month, Tehran hosted 137 companies from 45 countries for a two-day conference, during which legal generalities of IPC were introduced. Iran has offered 50 hydrocarbon fields, of which 17 projects belongs to ICOFC. Karimi said a daily average of 100,000 barrels of crude oil is currently produced in central oilfields of Iran and the figure is planned to double in two stages and reach 350,000 barrels per day by 2021. Recalling that recoverable crude oil reserves in Iran’s central regions add up to a total of 10 billion barrels, the official said “moreover, a sum of 7 trillion cubic meters of recoverable na

Iran and Azerbaijan signed the final document of the 10th joint economic cooperation commission meeting in Tehran, Dec. 22, which covers cooperation in 12 various sectors including oil, gas, industry, trade, healthcare, culture, transportation and renewable energy. The deal paves the way to cooperate more in gas swap, storing Iranian gas in Azerbaijan's underground storage facilities, oil products swap, developing energy reserves in Caspian Sea, etc. Iran and Azerbaijan have the potential to cooperate in the oil and gas sector, since the two countries boast huge deposits of oil and gas, and are capable to explore, produce, and export oil and gas. In the energy sector, developing the projects in Caspian Sea, gas export and gas storage issues have special importance. Caspian Energy Iran is keen to participate in the development of the Caspian Sea fields. Iran is cooperating with Azerbaijan for a decade to develop the Shah Deniz gas field in Azerbaijan, with over one trillion

During the 10th joint economic commission meeting, held on Dec.21 between   Iran  and   Azerbaijan , both sides emphasised the boosting of economic relations. Iran and Azerbaijan's trade turnover stands below $500 million according to Iranian officials statements, while the custom statistics show the figure is less than $300 million. In energy, Iran holds a 10% share in Azerbaijan's offshore gas field, Shah Deniz. Iran and Azerbaijan also swap about 1 million cubic metres of gas a day and also exchange power. Last November, Iranian Oil Minister Bijan Namdar Zanganeh explained the country's interests in cooperation with Azerbaijan,  during an exclusive interview with Trend . The most important issue for Iran currently is the development of about 50 oil and gas fields, offered to foreigners last month in the framework of a newly designed oil and gas contract, called the  Iran Petroleum Contract  (IPC). Iran has offered four projects in the Caspian Sea, blocks 24, 26 and 29

Iran's gas delivery to power plants experienced a huge drop due to soaring of housing gas consumption level in November. Iran's gas consumption in housing sector during September was about 120 million cubic meters per day (mcm/d), while this figure increased to above 450 mcm/d in late November and currently the figure stands around 500 mcm/d. The country's total gas refining capacity is below 600 mcm/d and consumption level in the housing sector leaves a small extra gas to be delivered to industrial and power sector which needs about 300 mcm/d of gas. According to the latest statistics, released by Iran Energy Ministry, the country's power plants have consumed 45.3 billion cubic meters of gas during 268 days of Iran's current fiscal year (From March 21 to December 13), while this figure for 238 days was 42.256 bcm. In other words, Iran's daily gas consumption in warm months of year was above 177 mcm/d, while this figure from November 13 to December 13 i

Halving Iranian gas export to Turkey amid rising Ankara-Russia tensions happened, but unlikely due to political motivations. Iran announced Dec.9 that it has boosted its gas flow to neighboring Turkey after a period of low supply. Turkish media had reported earlier that Iran halved gas supply to Turkey to 15 million cubic meters per day. There have been worries that over recent political tensions with Turkey, Iran might tend to lower the gas supply. However, Dispatching Director of the National Iranian Gas Company Manouchehr Taheri said the boost came after a technical problem with the supply facilities was fixed. He said two days earlier, the gas flow to Turkey fell to about half of the mentioned amount due to a problem with one of the compressors. Iran has been saying it is in possession of documents that show Ankara having a hand in the looting of Syrian and Iraqi oil by the terrorist organization “Islamic State” (IS). Turkey is in tough footing with another major ene

The Managing Director of the Iranian Offshore Oil Company (IOOC) Saeid Hafezi announced Dec.8 that the company's priorities are to sign an agreement with foreigners on development of Salman and Foroozan in framework of new designed agreement called Iran Petroleum Contract (IPC). IOOC's major goals are improving the recovery rate as well as protective production, Hafezi told the Shana Iranian news agency. During last month, Tehran hosted 137 companies from 45 countries for a two-day conference, during which legal generalities of IPC were introduced. Iran has offered 50 hydrocarbon fields, including 21 gas fields. IOOC has offered 5 oil fields, with more than 37 billion stock tank barrels as well as 2 gas fields with about 17 trillion cubic feet of gas reserves in framework of IPC to foreigners. Oil reserves of these fields share about 18 percent of total reserves, (29 oil fields with 210 billion stock tank barrels reservoirs), offered in framework of Iran Petroleu

By Dalga Khatinoglu During last month Tehran hosted 137 companies from 45 countries for a two-day conference, during which legal generalities of Iran’s new model of oil and gas contract (Iran Petroleum Contract, or IPC) were introduced. More details about the contracts will be unveiled at a conference likely to be held in London in February 2016. The legal generalities of the IPC show that it covers a package for all exploration, development, and production stages in many of the fields. Moreover, the parties will hold a stake in the output for more than two decades. The Iranian Oil Ministry will announce details about the terms and conditions of each oil and gas field within related tenders for foreign companies. Here are 16 facts about 21 gas and 29 oil fields, proposed for foreigners to take part in them, based on the IPC: 1 - Iran has offered 50 hydrocarbon fields, including 21 gas fields, of which 6 are offshore gas fields. 2- Eight of total 29 oil fields are off