World Bulletin / News Desk
Iran is in the process of restructuring its oil and gas industry to attract more foreign investment in order to modernise energy infrastructure after the easing of sanctions started November, 2013.
Iran increased its oil production by 11 percent in last four months, according to National Iranian Oil Company. Oil exports to China, Japan, South Korea and India increased by 25 percent to 1.2 million barrels per day, in the first half of 2014.
Neighbouring Iraq looks also to become an importer of Iranian gas for the first time next year, according to an Iranian government statement in August. Newly completed 97-km gas pipeline (across Iran), which started tests in August, will start transfering 7 million cubic meters per day. The pipeline will be completed when the final phase - the construction of the Iraqi side of the pipeline - is finished, due in March 2015 when it aims for a transfer of 25 million cubic meters a day.
Iran has started to deregulate its oil industry to encourage foreign investment into the country. According to current regulations, foreign investors are not allowed to own shares in oil and gas fields. A new contract model will allow investors to earn according to what they produce.
Iranian energy ministry officials are expected to announce new oil contracts in a conference to be held in London in November.
International energy companies' interest has focused on Iran after the easing of sanctions and Iran's new investment policies. Instability in Middle East and Ukraine has also caused oil companies to look for alternative oil sources. Companies like British Petroleum (BP), France’s Total, Russia’s Lukoil and Italy’s Eni are interested in making investments in Iran.
Iran plans to built 10 new refineries to increase production of its Persian Gulf based South Pars gas field, which holds the world’s biggest gas reserves with 51 trillion cubic meters.
Development of South Pars, which Iran shares with Qatar, is due to be completed in three years and will add 400 million cubic meters to Iran's natural gas production, according to Iranian officials.
Investors from Sweden, Germany, Turkey and Qatar are interested in South Pars Petrochemical industry projects.Last Mod: 03 Eylül 2014, 12:14