Oil Contract

MP: Timely enforcement of oil contracts is a must

TEHRAN, Sept 10 (Shana) – Member of the Board of Parliament Deputies from Khouzestan Homayoun Youssefi says timely enforcement of the new oil contracts is of significance as Ministry of Petroleum is after increasing extraction from oil fields west of Karoon and gas fields in South Pars.
Talking to Shana, Youssefi said, “Interest of the country is at stake.”

He said as a country enjoying more than 158 billion barrels of proven crude oil reserves and more than 33 trillion cubic meters of gas reserves, Iran reserves a splendid position worldwide in terms of hydrocarbon reserves in combination.

The MP went on to say that despite extraction of oil from unconventional sources or the shale reserves, estimates show demand for energy is on the rise and oil and gas will play an effective role in the future worldwide.

On environmental grounds, gas accounts for clean source of energy in present century and is included in the world energy basket as an important item, said the parliamentarian, adding that recovery from the joint oil and gas fields is the most important program of Iran in the production domain.

He said certain oil and gas fields of Iran are common with Iraq, Kuwait, Saudi Arabia, Qatar, the UAE and Oman.

As the world’s biggest gas reserve, South Pars gas field is common with Qatar, said Youssefi, adding that Arash gas field is common with Kuwait and Esfandiar, Foruzan, Farzad A and Farzad B are common with Saudi Arabia.

The MP said certain oil fields are situated on the border line.

Taking such a situation into consideration, Iran, as the major owner of the world oil and gas reserves, should try to absorb necessary capital to strengthen its position in the world oil and gas sale and exports market with the priority given to the joint fields, according to the parliamentarian.

He said extraction from fields west of Karoon and South Pars is now government priority and such a prioritization is justified both technically and economically.

“Over the past months, we have been witnessing installation of new platforms in South Pars with an aim to obtain more gas offshore,” said Youssefi, adding that also onshore, project for refinery construction is on agenda. So, he added, certain phases of South Pars are expected to be operational by end of this year (to end on March 20).

He quoted Minister of Petroleum Bijan Zanganeh as expressing hope that in light of projects under implementation west of Karoon, oil production out of the fields will reach about 300,000 bpd this year.

He added that Ministry of Petroleum follows to national priorities in the field of production and in this respect, national interests are important. “So, right and timely implementation of the new model of oil contracts is of significance. The new model of oil contracts should soon be finalized with respect to national interests and this is by no means in contrast with the parliamentary exigencies.”