Foreign Investors Positive About Iranian Oil Projects

EghtesadOnline: Iran’s new model of contracts for oil and gas projects has made investment in the country’s petroleum industry much more appealing for multinationals.

News ID: ۷۷۹۷۶۳

15 October 2017

Lyu Gongxun, vice president of PetroChina Company Ltd., made the statement on the sidelines of the Third Iranian Petroleum and Energy Club Congress and Exhibition (IPEC) in Tehran on Wednesday, Shana reported.

Pointing to the fact that Iran’s oil petroleum industry is full of opportunities and challenges, Gongxun said, “Concerted efforts should be made to expand energy ties between Tehran and Beijing, as such collaboration can help minimize investment risks and attract more financers.”

Attaching great importance to adopting cutting-edge techniques to enhance the recovery rate in Iran’s massive oil and gas fields, the official noted that the Chinese company is equipped with state-of-the-art technology to help the country achieve the goal in the safest possible way, according to Financial Tribune.

The Chinese official also highlighted the company’s commitment to environmental issues in Iran. Reportedly, Tehran is also in talks with PetroChina on collaboration and transfer of know-how in the petrochemical sector.

Based in Beijing, PetroChina is the country’s biggest oil producer. It is a subsidiary of state-owned China National Petroleum Corporation that has been actively seeking a place in Iran’s energy sector after the lifting of international sanctions against Tehran last year.

The prospective cooperation with PetroChina will further expand the role of Chinese majors in Iran’s energy market.

Major Breakthrough

According to Alessandro Tiani, Italy’s Eni’s vice president for advanced reservoir modeling and EOR technologies, who also delivered a lecture at IPEC, Iran holds the world’s second biggest natural gas reserves after Russia, and has the fourth-largest proven oil reserves, that is why raising recovery factor in the country’s hydrocarbon reservoirs even by 1% can translate into a major breakthrough. Referring to the implementation of advanced enhanced oil recovery and improved oil recovery methods, Tiani said as long as the methods are not applied appropriately, not only do they not yield positive results, but they can also result in irreparable damage to the reservoir.

“Having access to sophisticated techniques, Eni can help the National Iranian Oil Company accomplish its strategic goal in the shortest possible time,” he added, noting that Eni was involved in the development of several oil and gas projects in Iran before a series of international sanctions barred multinationals from investing in the country.

The projects that the Italian energy giant was involved in Iran included the development of phases 4 and 5 of the country’s South Pars Gas Field as well as the Darkhovein, Doroud and Balal oilfields. The Italian energy giant has also signed a memorandum of understanding with NIOC to conduct technical surveys on Kish gas field and the third phase of Darkhoveyn Oilfield in six months.

IPEC aims to promote efficiency as a public and non-governmental organization staffed by senior executives, experts and researchers active in the fields of strategic management, energy economics, technology and commerce.

This association follows national index experience of oil and energy fields with an efficient structure to use the optimal capacity, establish good relations among executives and facilitate the transfer of know-how to hundreds executives and entrepreneurs.