Iran's energy sector review

French Total, with 50.1 percent stake, signed a $4.8 billion worth agreement with Iran to develop the phase 11 of South Pars gas field. CNPC and Iran’s Petro Pars have 30 percent and 19.9 percent stakes as well. The 20-year deal, based on newly designed contract model, called Iran Petroleum Contract (IPC), can be extended for 5 years further, and would become operational in two stages. The first stage will cost $2 billion, of which Total would invest 50 percent. The project includes construction of two 32-inch pipelines with length 270 km total, as well as drilling 30 wells (including 28 production wells), construction of two 1,500 tons platforms as well as construction of 4.5-inch pipeline (136 km) to transit ethylene glycol from land to offshore project for dehydration of gas and another 4.5 km 36-inch pipeline and a mooring buoy to transit gas condensate there for loading to tankers. Total CEO Patrick Pouyanné said earlier that the revenues from the $1 billion investment preponde...

The share of fuel oil (mazut) in the final output of Iran’s refineries reached 23.25 percent during the last fiscal year (ended on March 20). According to an official report, prepared by Iran’s oil ministry and seen by Trend, Iran’s total refined oil products output was 1.74 million barrels per day, of which 23.25 percent was fuel oil. Iran produced oil products at nine refineries (six of which are very old), during last year and the first phase of Persian Gulf Star refinery also started work in limited mode as well. The share of fuel oil in the final products basket of some Iran refineries is very high: Refineries Fuel oil Gas oil Gasoline LPG Kerosene Total major products Abadan 21,603 16,517 9,737 2500 1,866 52,223 Kermanshah 1,210 908 620 60 281 3,079 Tehran 6,558 13,450 6,382 1,351 800 28,541 Shazand 6,050 9,914 14,917 1,206 2,864 34,951 Tanriz 3,330 6,351 3,464 579 583 14,307 Isfah...

Iran sold less petrochemical products in volume during the first two months of the current fiscal year (started on March 21), but the revenues increased. The country exported 3.431 million tons of petrochemicals, 58 tons less than March21-May 22, 2016. However the revenues increased by $103 million to $1.673 billion, the statistics of an official document, prepared by Iran’s National Petrochemical Company and seen by Trend, indicate. Coming to the domestic sales, both the volume and revenue increased by 2.3 percent and 32.7 percent in first two months of the current fiscal year, compared to the same period of last year. Iran sold 2.742 million tons of petrochemical products (including the selling products between plants to be used as feedstock) with worth 53.5 trillion rials ($1.54 billion). The net domestic petrochemical products sale stood at 1.237 million tons with worth $713 million. Iran produced 8.95 million tons petrochemical products, of which 1.5 million tons was us...