new technologies and environment.
Q: Now given the possible entry of foreign companies into Iran’s petroleum industry, what’s your plan for supporting Iran’s knowledge-based companies?
A: Over the past four years, IOTC has had a domestic approach in equipment supply. For the first time, ship-to-ship operation carried out in the Persian Gulf by relying only on our domestic potentialities. For this project, we have engaged knowledge-based companies and centers in 13 provinces in Iran to be able to indigenize tugboat engines. Meanwhile, in cooperation with the Academic Center for Education, Culture and Research, we are developing crude oil loading arms for the first time in the Middle East. These domestically manufactured arms, along with master meter provers, are to be installed at Jetty No. 10 of Kharg terminal. Domestic manufacturing petroleum industry equipment is the way that must continue with the support of the petroleum industry subsidiaries.
Q: in what sectors is IOTC willing to cooperate with foreign companies?
A: New measurement systems and new technologies in the management of storage tanks, safety, environment and loading arms are the sectors in which we would negotiate with foreign companies for cooperation. We have so far reached good results with Dutch companies in this regard.
Q: How much of the current 28-million-barrel crude oil storage capacity is operational?
A: We are currently using only 11 million barrels of this capacity and the rest is empty, but ready to be filled.
Q: How much is the current capacity of Iran’s oil exports?
A: Sometimes, due to the congested navigation of oil tankers at Kharg terminal and bad weather conditions, exports are disrupted. However, we face no problem in this regard given the 9-million-barrel capacity of this terminal and the skilled manpower. This record has recently been set and we managed to export 9 million barrels of oil in a single day. So, whenever it is necessary, IOTC is ready to utilize all its jetties and potential to export crude and /or products.
Q: What about Iran’s gas condensate exports?
A: As you know Iran started exporting gas condensate with a single-point mooring (SPM) in the early 2000s after South Pars [gas field] development phases became operational. Today, new phases of South Pars have become operational and are exporting condensate with three SPMs. This figure will increase soon after Phase 19 of South Pars has been launched. Of course, I have to recall that Iranian petroleum industry managers wish to bring down gas condensate export to zero so that this valuable hydrocarbon substance would be processed in refineries inside the country.
In compliance with the policies of Resilient Economy, the bulk of gas condensate produced at jointly owned South Pars gas field is [planned to be] treated at Persian Gulf Star Refinery (360,000 b/d), Siraf refining park (480,000 b/d) and petrochemical plants to be converted into downstream products like gasoil, gasoline and naphtha in conformity with euro-4 standards. But before the launch of these plants, gas condensate will continue to be exported by SPMs.
Q: One of Iran’s policies about crude oil export has been to shorten the distance for clients. To that effect, Iran is launching Jask export terminal to diversify its exports. What are the latest developments about this terminal?
A: Yes, that’s true. At present, 5,400 ha of land has already been allotted to this project. Basic studies have been conducted. According to plans, alongside petrochemical and refining facilities, crude oil storage tanks with a capacity of 10 million barrels would be built in Jask area. Also by installing an SPM at Jask area we will be able to export oil via Oman Sea. We are currently choosing an investor who will be most probably a foreign investor. Furthermore, in cooperation with National Iranian Gas Export Company, facilities will be also built for exporting gas to Oman.
Q: When will we witness crude oil swap resumption in northern Iran?
A: Crude oil swap between Iran and Caspian Sea littoral states will be resumed via Neka oil terminal. According to plans by the Department for International Affairs of NIOC, contracts for crude oil swap have been finalized and this terminal will soon start its work. With the energy diplomacy applied by the 11th administration of Iran, lots of efforts have been made for providing the infrastructure for the implementation of this project. Over the past two months, Neka oil terminal has received many international certificates. This terminal is now able to swap 150,000 b/d of oil. According to plans, with the development of this terminal and an increase in the draft and storage capacity, Iran would be counting on swapping 500,000 b/d of oil. I have to recall that Neka oil terminal development project would be a good opportunity for investment in Iran by foreign companies.
Q: One of the important issues which Iran’s Ministry of Petroleum has focused upon and international companies have been paying attention to has been the issue of social responsibility in oil and gas zones. How does IOTC deal with this issue?
A: IOTC believes that it will be able to fully implement a project when local people and residents could enjoy an acceptable level of social welfare and cultural services. In that case, we can count on their contribution to the implementation of the project. In Kharg Island where it has a record of decades of oil production and export, IOTC has managed to provide good and proper services to local residents. For instance, we can refer to the construction of hospital, ferry with 50% discount in fares, low-price fresh water and electricity supply and free transportation of people’s needs on ship, and modern collection system of garbage and waste. In the light of their social responsibilities, oil companies pay due attention to this issue.