Iran Petchem Exports Reach $16b in 1401 amidst Oil Industry Developments

Iran Petchem Exports Reach $16b in 1401 amidst Oil Industry Developments
(Tuesday, August 29, 2023) 22:48

TEHRAN (NIPNA) -- Iran's Minister of Petroleum announced on Tuesday that the country had exported petrochemical products worth $16 billion in the year 1401 (ended on March 20), reflecting a significant boost to the nation's oil and gas sector.

In an official ceremony marking the commencement of gas extraction from Phase 11 of the South Pars gas field, Minister Javad Owji emphasized the annual production capacity of 92 million tons in the country's petrochemical industry.

He highlighted that last year's petrochemical exports reached $16 billion in value.

Javad Owji, speaking today during the inauguration event attended by President Seyyed Ebrahim Raisi in Asaluyeh, stated that this marked the second time in the past six months that the President had come to Bushehr province to oversee oil industry projects.

Owji noted that in the previous year, Ayatollah Raisi inaugurated the development project for Phase 14 of the South Pars gas field, increasing the nation's gas processing capacity by 56 million cubic meters per day.

"In the same ceremony, the emphasis was placed on the Phase 11 of South Pars achieving operational status in this administration. The President's focus on joint field development, especially the completion of South Pars phases, is evident," Owji remarked.

The Oil Minister emphasized, "Today, this achievement has been realized, and Phase 11 of South Pars has officially become operational. This comes at a time when foreign companies like Total, Shell, and CNPC (China National Petroleum Corporation International), which had contracts for the development of this phase for 20 years, took no practical steps."

Owji noted that over the past 20 months, with the efforts of national Iranian oil companies, including NIOC, NIGC, PetroPars, and marine engineering, as well as government support, the project was brought to fruition. The value of Total's contract in Phase 11 was approximately $4.8 billion, but due to sanctions, the company withdrew from the development in 2018. However, progress did not stall during the 13th government, and with our confidence, we are witnessing the inauguration of this project today.

Referring to the ongoing government initiatives, Owji stated, "As we are in Government Week, all government agencies and ministries have good projects ready for inauguration. However, due to the significance of the issue, the shared ownership of South Pars field, and the unprecedented nature of development in Phase 11 of South Pars, the President decided to attend the official opening and commencement of operations in Asaluyeh, and we have started the production and gas extraction operations from Phase 11."

Owji emphasized the importance of observing safety principles for the President's presence in Phase 11 of South Pars: "Plans were made to halt production, but Ayatollah Raisi did not allow even a moment's halt in gas production."

Regarding the completion of wells in Phase 11, Owji stated that with all wells completed, 50 million cubic meters of gas per day would be extracted from South Pars Phase 11.

Speaking of the achievements of the 13th government in South Pars, Owji mentioned that among the 347 semi-completed projects valued at $12 billion that entered operational status last year, an additional 67 upstream and downstream projects valued at $15 billion are set to become operational in 1402 [2023]. He added that, of these 67 projects, 25 projects valued at $7.5 billion have already become operational.

Enumerating the key accomplishments in South Pars during the 13th government, Oji highlighted the opening and operationalization of South Pars Phase 11, the launch of sweetening units in Phases 2 and 3, the construction of a new pipeline in Phase 16, and the inauguration of the Phase 14 refinery in South Pars.

"Beyond the 67 semi-completed projects slated for this year, we will initiate the execution of 15 new projects in 1402. With the blessing of the blood of the martyrs and the slogan 'We Can,' today the oil industry is self-sufficient in all sectors," Owji proclaimed.

He also underscored that there are currently no foreign advisors in Iran's oil industry, both upstream and downstream. "30 countries are under US sanctions, and the oil production of these countries decreases as soon as the sanctions are imposed, leading to the shutdown of their refineries. However, Iran has gone beyond self-sufficiency in the oil industry. We are present in underground refineries, and we see that Iran has a daily oil production capacity of 3.8 million barrels and over one billion cubic meters of gas," Owji concluded.

Furthermore, the Minister noted that the country's current daily refining capacity, including oil and gas refineries, stands at 2.3 million barrels, while the production capacity of Phase 11 of South Pars would lead to a savings of $800 million

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