9mb/d Crude Oil Loading Capacity
Iran Oil Terminals Company (IOTC) acts on behalf of National Iranian Oil Company (NIOC) for Iran’s oil exports. IOTC also completes Iran’s oil production-export chain. Currently, 93% of Iran’s crude oil exports are handled via Kharg oil terminal with the rest being exported via Neka and Mahshahr terminals. All gas condensates produced in Iran is exported by IOTC via Assaluyeh oil terminal.
Iran Petroleum has interviewed Pirouz Mousavi, CEO of IOTC, on Kharg and other oil terminals handling Iran’s oil and gas condensates exports.
Q: Would you please first talk about IOTC activities in the aftermath of the implementation of the Joint Comprehensive Plan of Action (JCPOA)?
A: Following the entry into force of the JCPOA (the official reference to Iran’s nuclear agreement with world powers) and the subsequent removal of sanctions, Iran has concentrated on its oil exports. The Iranian Ministry of Petroleum plans to bring its oil production, exports and swap to the pre-2005 level, i.e. before the sanctions were imposed. To that end, IOTC has made the required arrangements to move towards materialization of these objectives in order to fulfill the petroleum industry’s obligations to the international community. In order to reach its oil export objectives, IOTC has made precise and competitive planning so that Iran’s sustainable oil production and exports to world markets would be guaranteed. Today, due to limited capacity of storage in Iran, the country’s oil production largely depends on sustainability in oil exports. In the light of insistence by Iran’s petroleum minister [Bijan Zangeneh] for a 1mb/d oil production and export hike during six months following the implementation of JCPOA [last January], IOTC has severely focused on the materialization of this issue. But we have met our targets much earlier than the determined date, while market analysts did not expect it. Today, the amount of oil supplied by oil fields to Kharg Island is not much different from the amount delivered during years before the sanctions were imposed. With such preparations as reconstructions and renovations at jetties, power plants and oil storage tanks we have managed to stabilize Iran’s oil exports in the post-JCPOA era.
Q: You just spoke about the infrastructure for sustainable crude oil exports. Would you please provide more details?
A: Before the sanctions [were imposed], Iran’s crude oil storage capacity had declined to 19 million barrels. Therefore, immediately after removal of the sanctions, the overhaul of ageing tanks was placed on the agenda as Iran’s oil exports were set to increase. Meantime, in parallel with renovation of ageing storage tanks, we accelerated the construction of new ones with a capacity of 4 million barrels. At the moment, Iran’s oil storage capacity stands at 28 million barrels. Furthermore, in collaboration with the private sector, a group of oil storage tanks with a capacity of 10 million barrels is expected to be delivered to us soon. Then, Iran’s oil storage capacity will reach 38 million barrels, which we can say is in compliance with international standards. Until recently, IOTC owned 10 tugboats. Two tugboats have been added to its fleet, while as many tugboats have been rented. Six loading berths are active in the eastern jetty and three others in the western jetty.
Last month, IOTC managed to smash its own record for transfer. By simultaneous transfer to 9 oil tankers in the jetties and to an oil tanker through ship-to-ship method we managed to set the new record. An outstanding feature of Kharg oil terminal is its reference lab that determines the quality of crude oil delivered to customers. This lab serves as reference and its reports are reliable. This center, which is equipped with specialized and experienced forces, analyzes the quality of crude oil. It is also able to export technical services to other countries in the region.
In 2010, only four loading berths were active at Kharg terminal. But today, thanks to renovation and overhaul projects, all berths at this terminal are active.
Q: Given Iran’s petroleum industry development plans in the upstream sector and the planned export of more than 5 mb/d under the country’s Vision Plan, does IOTC have any other projects on agenda?
A: Given the application of modern technologies to loading arms and the issue of environment, we are focusing on these two issues. Currently we are cooperating with Tehran Academic Center for Education, Culture and Research on these two domains and also application of new technologies to reservoirs, decontamination of oil-polluted soil and preventing the release of polluted water into sea. This company managed to obtain green certificate after having implemented environmental projects. We also plan to use automatic systems for removing oil and sludge from contaminated soil.
Q: Given the implementation of JCPOA and political overtures, have you had any talks with foreign companies on using cutting-edge technologies in different sectors?
A: Today, a major need for Iran’s petroleum industry is to attract foreign investment. This industry needs $50 to $60 billion in annual investment. IOTC is no exception in this regard. We hope to witness the presence of foreign companies and investors in Iran after finalization of the new model of Iran oil contracts. As part of the petroleum industry, we have also held talks with foreign and European companies on new technologies and environment.