He said Iran was waiting for the European countries to decide which government would host the SPV head office.
“Talks are under way between the Europeans. Some of them had no possibility to host the SPV and some others have notified us of their readiness. We are waiting for the process to be finalized,” he added.
“The US pressure on these countries is serious and this issue has its own complications, but we have already seen positive determination on the part of Europe and I think they are looking for options to launch suitable mechanisms,” Qasemi said.
3-100 Oil, Gas Wells Drilled and Completed
A senior official at National Iranian Drilling Company (NIDC) says 100 oil and gas wells have been drilled and completed onshore and offshore across Iran since last March.
Mohammad Al-e Khamis said the 100th well had been completed at Rag Sefid. Drilling was done by Fath 63 rig.
He said that Fath 63 was among drilling rigs owned by the NIDC Directorate of Onshore Operations.
“The drilling and completion of the last well lasted 125 days and delivered to National Iranian South Oil Company (NISOC) for operation,” he added.
Al-e Khamis said: “Based on documents, since the beginning of current Iranian calendar year, 40 development wells, five appraisal wells and 55 workover wells have been drilled and completed by drilling fleet at the disposal of NIDC in onshore and offshore areas across the country.”
He added that most of NIDC drilling devices had been installed in areas run by NISOC. Other drilling rigs, said Al-e Khamis, area spread in areas run by the Petroleum Engineering and Development Company (PEDEC), Arvandan Oil and Gas Production Company (AOGPC), Iranian Offshore Oil Company (IOOC) and Iranian Central Oil Fields Company (ICOFC).
“Based on an agreement signed between NIDC and the Directorate of Exploration of National Iranian Oil Company (NIOC), operations have started for drilling two exploration wells in Khuzestan Province with Fath 32 and Fath 33 drilling rigs. The project is progressing well,” he said.
4-IGTC to Use Domestic Space Technology
The Iranian Gas Transmission Company (IGTC) has signed a memorandum of understanding (MOU) with the Iranian Space Agency (ISA) for the application of domestic spatial technologies.
The MOU was signed in line with the general policies of Iran’s 6th Five-Year Economic Development Plan.
Morteza Barari, deputy minister of telecommunications, told the signing ceremony, the main objective of the MOU was to plan and implement the pilot phase of satellite telecommunications services to IGTC.
“Cooperation in the feasibility phase and designing mission for telecommunications satellite, presenting necessary technical data to ISA, contribution to and supporting investment are among IGTC’s obligations in this MOU,” he said.
According to Barari, ISA has pledged in the MOU to make arrangements for the provision of satellite telecommunications services to IGTC within the framework of projects agreed upon between them.
Saeed Tavakoli, CEO of IGTC, said: “With the full implementation of this MOU by ISA, IGTC will be able to clear the way for further cooperation, and become the ISA ambassador in the gas industry.”
He said the MOU would be in effect for four years. “Safety and sustainability of communications and assurances about data safety are among concerns of Iran’s gas transmission network. These concerns will be allayed by operating satellite systems.”
5-Amine Recovery in South Pars Refinery
The operations for the recovery of contaminated amine have been successfully accomplished at the 10th refinery of South Pars gas field. The operations were aimed to guarantee the cleanness of gas sweetening process.
Soheil Rafii said the recovery operations ended in the recovery of about 350 mcm of diluted amine.
He said that methyldiethanolamine (MDEA) is used in sweetening operations in oil and gas refineries.
Methyldiethanolamine is an alkanolamine used in tail gas treating and hydrogen sulfide enrichment units for selectively removing hydrogen sulfide from gas streams containing carbon dioxide.
These units will, in most cases, permit 60 to 80% of the carbon dioxide to remain in the treated gas stream. Methyldiethanolamine is also used in natural gas plants for the bulk removal of carbon dioxide.
“With the turn of time and under the impact of chemical reactions, this substance is partly destroyed. In some cases, due to operational problems and defective equipment this highly valuable substance is likely to be contaminated. Under such conditions, the sweetening process becomes impossible,” said Rafii.
He added that due to the high value of this material and the near-impossibility of its supply under current sanctions, the feasibility and simulation and recovery of amine were entirely done by Iranian engineers.
The contaminated amine at the 11th refinery, SP13, was received and processed to give more than 38 tonnes of pure amine.
Rafii said the operation would recover 700 tonnes of pure amine valued at over $2 million.
6-New Buyers of Iran Oil
Iran’s first vice president has said that the country has found new customers for its oil amid US sanctions targeting its petroleum sector.
Regarding the impact of US sanctions on Iran's oil exports, the vice president told Japan’s Kyodo news agency Iran has "found new customers and we sold our oil to them."
While he did not reveal the identity of the "new customers," he said his government has started "serious negotiations" for selling more oil to Russia and to China and other Asian countries, for example.
Jahangiri anticipated that Iran could restore its oil exports to the same level before Nov. 4 even after expiration of the six-month waivers.
He called the stated US goal of getting all the nations to reduce their imports of Iranian oil to zero "very dangerous," but at the same time "very unlikely."
"I assure the world that if Iran would be deprived of its main source of income, we would not be silent and will take appropriate measure in the right time."
Under a 2015 deal struck between Iran and six major powers - Britain, China, France, Germany, Russia and the United States - Tehran agreed to curb its nuclear activities in exchange for the lifting of crippling economic sanctions.
Gov’t Welcomes Japan Business
Jahangiri said Iran stands ready to address the concerns of Japanese companies willing to continue business with the country, even as the United States pressures its allies to get tough on Iran and to stop importing its oil.
"We are ready to negotiate with Japanese companies who are interested in continuing their business in Iran for reaching new solutions in order to ease their concerns," he said.
"The Japanese government and companies have always had their own ways to pass US pressures and we hope again they use their initiatives to stay as a major oil importer from Iran," he added.
Japan is among eight nations that received six-month exemptions from US sanctions on importing Iranian oil.
Jahangiri praised Japan's stand in supporting global peace after World War II, but called it to use its power and influence to put an end to "US unilateralism" in the world.
"Japan must stand against US unilateralism, which is threatening independent countries and might go beyond Iran's nuclear issue to encompass other issues around the globe," he said.
7-Petchem Research to Be Commercialized
The CEO of National Petrochemical Company (NPC) has called for the commercialization of petrochemical research achievements.
“I believe that widespread and quick action is needed with regard to the commercialization of current activities of ” the Tehran branch of Petrochemical Research and Technology Company (PRTC) ”, Behzad Mohammadi said.
“Certain measures have already been taken, leading to contracts, but planning is needed for technical knowhow commercialization to reach maturity,” he added.
Mohammadi described the petrochemical industry as a dynamic and burgeoning one with an influential role in national economy. He said that PRTC was playing a vital role in technical logistics.
“Should we fail to win assurances from industries for the technical and research capabilities of this company, all efforts and valuable achievements of this sector will remain fruitless,” he said.
Mohammadi added that Iran’s petrochemical industry can prove instrumental in reducing dependence on foreign knowhow particularly under the present circumstances.
He called for effective steps to be taken for cooperation between PRTC and Iran’s petrochemical sector.
8-Investment Talks Under Way despite Sanctions
The director of investment at Iran’s National Petrochemical Company (NPC) has said that despite US sanctions on Iran negotiations with foreign investors continue.
“Notwithstanding the sanctions, foreign companies are in regular talks for investment in the petrochemical industry. Necessary measures are under way to that effect,” Hossein Ali-Morad said.
“In my view, being neighbor with 13 countries and having access to their markets will alleviate the pressure of sanctions on the country,” he said.
“As the previous round of sanctions upgraded our industry and we managed to have good interaction with neighboring countries, we will cross this round of sanctions, too.” he added.
Ali-Morad said the Ministry of Petroleum and NPC would offer their support to foreign investors who would prove their real intention and technical capacity.
Ali-Morad also said that 25 mcm/d of gas was being supplied to Qeshm Free Zone for its development with a view to becoming an energy hub.
He added that any petrochemical project on Qeshm Island would primarily need allotment.
“The objectives of development must be elucidated because development is required to be balanced and sustainable,” said Ali-Morad.
“Furthermore, the administrator of infrastructure for utilities must be specified because a technical supervisor is needed for coordination in order to manage the development of petrochemical industry,” he added.
“The number of projects under construction is 56, which require $35 billion in investment,” said Ali-Morad.
9-$7bn Petchem Investment in Qeshm
The former head of National Petrochemical Company (NPC) has said that $7 billion had been invested in the petrochemical sector of Qeshm Free Zone.
Reza Norouzzadeh said four major petrochemical projects were envisioned in Qeshm.
“The foreign investor is starting its $7 billion investment in this zone,” he added.
Norouzzadeh said NPC had made necessary planning for the development of new zones.
“The Parsian, Qeshm, Chabahar and Jask free zones enjoy unique advantages like access to high seas, abundant feedstock, necessary utilities, land, and infrastructure for export and transit of goods, customs exemption for commodity and equipment as well as tax exemption,” he added.
Norouzzadeh said investment in the petrochemical industry would be profitable and risk-free due to “huge hydrocarbon resources, the economic and regional status of the country, access to high seas and transportation infrastructure.”
Referring to the formulation of roadmap for the development of petrochemical industry by NPC, he said: “This company has valuable experience in engineering, supply and procurement of commodity, as well as provision of technical knowhow.”
“NPC plans to implement more than 100 petrochemical projects to attract $100 billion in investment,” Norouzzadeh said.
10-Bandar Abbas Refinery Set to Enhance Output
The Bandar Abbas oil refinery is set to see its output capacity increase after the operation of an azote gas production unit and the installation of a power generation gas turbine.
Furthermore 17 storage facilities have become ready for stocking refined petroleum products.
A plan for boosting capacity and improving quality at the Bandar Abbas oil refinery is nearing completion.
The remaining units include an amine processing unit, sour water treatment unit and sulfur recovery section, which are all near completion. They are forecast to become operational before January.
The implementation of this national project lies within the framework of Iran’s resilient economy.
With the startup of the gasoil hydrotreating section, the sulfur content of the gasoil produced at the Bandar Abbas oil refinery was reduced to below 50 ppm, and the Euro-4 gasoil output reached 15 ml/d at the refinery.
At the hydrotreating section, impurities like sulfur, nitrogen and oxygen as well as some metals in the feedstock like nickel, vanadium, arsenic, lead and copper are separated from gasoil. Furthermore, more than 35,000 tonnes a year of solid sulfur is recovered while the release of about 7 million tonnes of SOx into the air is prevented.
With a rated capacity of 50,000 b/d, this section is the largest unit at the Bandar Abbas oil refinery to have been built based on the state-of-the-art technology. An air preheater (APH) has been used in this section for energy efficiency. APH is any device designed to heat air before another process (for example, combustion in a boiler) with the primary objective of increasing the thermal efficiency of the process. They may be used alone or to replace a recuperative heat system or to replace a steam coil.
Furthermore, hydrotreating produces light gas which is sent to the gas treatment units to be used at the fuel gas network of the refinery.
11-Iran may Double Petchem Output to $40bn
Iran’s petroleum minister, Bijan Zangeneh, has said the country may double the value of its petrochemical production to $40 billion.
“The petrochemical production [in Iran] is currently valued at about $20 billion, but this figure can reach $40 billion,” he said.
Zangeneh said Iran’s petrochemical sector is making great contribution to currency generation.
“The National Petrochemical Company (NPC) and the Ministry of Petroleum have been instrumental in striking a balance to the hard currency market,” he added.
Zangeneh said the most significant obligation upon the NPC was to make the necessary preparations for the financing of petrochemical projects.
“There is still room for maneuvering in the downstream petrochemical industries and more has to be done,” he added.
Zangeneh said: “The NPC has no statutory regulatory role in private petrochemical projects, but it can help them resolve their problems and facilitate their communications with the Ministry of Petroleum.”
He said that necessary resources must be allocated to petrochemical units.
“Financing is not difficult in the country, but proper planning is needed for reaching genuine production and profitability because for example during a specific period of time many units were built to produce urea and methanol, which reduced prices and was loss-producing for everyone,” the minister said.
Zangeneh expressed hope that the petrochemical sector would see a major jump before the current administration bows out in 2020.
“Private companies are doing their own job, but we can make reasonable planning to help this industry make progress,” he said.
Zangeneh gave a positive assessment of feedstock availability in Iran, saying: “We need to inject ethane to national grid for consumption next Iranian calendar year, because we will have extra ethane.”
Zangeneh said the necessary financing in hard currency for petrochemical projects needs to come through “financing” as long as Iran is under sanctions.
He also said that NGL 3100, NGL 3200 and NGL Kharg will provide additional feedstock.
Petchem Diversity
Behzad Mohammadi, the new CEO of NPC, said the company has to exercise its strategic role in order to be able to help develop Iran’s national petrochemical industry and generate value-added.
He said that the diversity of petrochemical products was an advantage for this industry.
He also highlighted the abundance of petrochemical feedstock in the country.
Mohammadi also stressed the need for the development of downstream pe