Zanganeh: Report on Bou Ali Sina petchem facility soon to be finalized


TEHRAN, July 27 (Shana) – Minister of Petroleum Bijan Zanganeh said on Wednesday that report on cause of Bou Ali Sina Petrochemical Facility in Mahshahr Petrochemical Special Economic Zone will soon be finalized.

Zanganeh said a complete report on verification of the incident in the Mahshahr PETZONE has been prepared and it will soon be finalized once more precise studies on it is available.

He told Shana that the report had been prepared in the first week of the fire and more careful investigation on it started as directors of the petrochemical sector demanded in order to remove possible ambiguities.

“We do not wish to condemn a group of people hastily or overlook offense, if any, of a number of others,” he said, adding that full report of the incident had been presented to a meeting last week, attended by Persian Gulf Holding Company and the HSE and petrochemical officials.

He said there are still two points falling in domain of ambiguity.

He predicted that the dark points will soon come to a conclusion.

The Minister said, “We will not turn a blind eye to HSE, especially safety, side of the issue.”

Elsewhere in his remarks, Zanganeh referred to finalization of the new model of draft oil contracts at Ministry of Petroleum and said for the first, the government approval on framework and conditions of the contract should be received, based on which finalize the draft. “Without government approval, which serves as the framework and general conditions of the new model of contracts, one cannot write the draft of the model of contract and put it at the disposal of others.”

Up to so far several drafts of the new model of oil contracts has been prepared but none of them is yet final. Despite criticisms made of the models, experts’ studies show that the model of contacts can absorb as much as 30 billion dollars foreign investment.

On installation of platforms and more movement in South Pars gas field in the past weeks, Zanganeh said installation of platforms in South Pars serves as a prelude to increase in the production.

With completion of well drilling, in fact the platform installation began and is underway and South Pars Phase 19 platform is now installed and platform for the phases 21 and 18 will soon be fixed in due location, added Zanganeh.

The Minister said giant works are now done in South Pars. “Gas receipt from the sea is the main goal of the development of the joint field. Also, works on the offshore part and in refineries follow with a good speed and by end of this year, phases 19, 20, 21 and 18 will come on the production cycle.”

Zanganeh said efforts are underway to activate phase 18 of South Pars with gas receipt from the sea as the phase is yielding products with the gas received from phases six, seven and eight.

As for increase in production of fields west of Karoon, he said, “We hope oil production from fields west of Karoon will exceed 200,000 bpd and reach 300,000 bpd in the next phase.”

Oil production from fields west of Karoon, which is the most important priority of the Ministry of Petroleum in joint oil fields, stood at about 50,000 bpd before 2013 but now it has reached close to 200,000 bpd and will exceed the level soon.

Azadegan, Yadavaran, and Yaran are the big oil fields on Iran border and are known as West Karoon oil fields.