Monday, June 24, 2024

Iran oil minister says $40bn worth of deals signed in less than two years

Iran’s Oil Minister Javad Owji says that the country has inked $40 billion worth of oil contracts with domestic and foreign companies over the past 20 months.

Addressing the second ministerial session of the 8th OPEC (Organization of Petroleum Exporting Countries) International Seminar on Wednesday, Owji said Iran’s oil industry plans to attract $250 billion worth of capital within the next eight years.

The seminar, entitled “Investments, Finance and Inclusive Petroleum Growth Strategies”, was held in the Austrian capital of Vienna.

Iran tops the world’s rankings in terms of aggregate crude oil and natural gas reserves, said the minister, adding that the country is the holder of 154 billion barrels of recoverable crude oil and more than 33 trillion cubic meters of natural gas.

Iran is currently producing 3.8 million barrels of crude oil and gas condensates and more than one billion cubic meters (bcm) of rich (sour) gas a day, he added.

Given the country’s high oil and gas production capacities, the administration of President Ebrahim Raisi has formulated a detailed plan for boosting the output capacity, the minister stated.

Iranian experts are developing the country’s oil and gas fields from A to Z despite the tough sanctions imposed against the country, said Owji, adding that they also develop and overhaul oil and gas refineries, and no foreign expert is needed.

“We are faced with brutal sanctions imposed by one country and these sanctions against Iran’s economy and oil industry have not been imposed by the United Nations,” stated the top official, continuing, “We have, however, managed to increase oil and gas output by using experience we have gained in developing oil and gas fields and constructing refineries and petrochemical complexes during long years of sanctions.”

Today’s world is in dire need of energy, particularly natural gas, underlined Owji, adding that Iranian companies are developing the country’s onshore and offshore gas fields and Iran is now self-sufficient in horizontal and vertical drilling technologies.

The terms and conditions of Iran’s new oil contracts are aimed at attracting investors and the new deals are “appealing” to investors and a number of such contracts on development of oil and gas fields and construction of refinery-integrated petrochemical plants have been inked in recent years, Owji underscored.

Based on the new oil contracts, investors use revenues earned by selling products of hydrocarbon fields, he stated and added that some countries including Russia and even oil companies of neighboring states have welcomed such contracts.

New oil contracts have been drawn up in a way to give a Return on Investment (ROI) in the shortest time possible, and foreign investors would make significant profits when they develop oil and gas fields, he said.

In conclusion, Iran’s oil minister expressed the country’s readiness to attract investors in upstream, downstream, and associated petroleum gas (APG) collection projects.

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