Is Iran going to leave OPEC?

Oil&Gas Materials 3 May 2019 16:57 (UTC +04:00)

Tehran, Iran, May 3


"Gas production capacity in Iran in the current year will surpass 1 million cubic meters and we plan to complete fuel supply for industrial units in current Iranian year (starting on March 21, 2019)," Iran Oil Minister Bijan Namdar Zangeneh said, Trend reports.

Speaking at the 24th Iran International Oil, Gas, Refining & Petrochemical Exhibition, he informed that in the current year, the oil ministry's put forth a plan on investments in South Pars. "The production volume in South Pars will increase to 60 million cubic meters per day until winter," he said.

He also noted that a special focus was placed on completing petrochemical plans with high progress. "Eighteen petrochemical plans will operate in the current and next Iranian year (starts on March 21, 2020). The production volume will increase from 27,000 tons in 2013 to 50,000 tons in 2021, while the income will increase from $19 billion to $36 billion in 2021. This will not only enhance the country's production, but also increase the demands for goods and engineering services that would be referred to domestic companies," the Minister added.

Referring to the plan of investing people's financial resources in the public and private sector in the current year, he said," We also plan to establish cooperation with startups and knowledge based companies to develop this field, while continuing our cooperation with academic institutions."

Zangeneh spoke about continuity of EPC (Engineering, Procurement and Construction) projects in upstream as part of ministry's plans. In his words, six billion dollars are needed to increase the production and maintenance in upstream oil industry. Currently, 10 contracts have been signed, and another 23 contracts are planned to be signed. The aim of this plan is to improve oil production, create employment opportunities and support domestic contractors.

The official has insisted on supporting domestic production of 10 items of goods for EPC and EPD in current Iranian year, "Major part of the goods should be purchased in the country."

Answering the question whether Iran may leave OPEC, Zangeneh said, "We will discuss this issue at OPEC's upcoming meeting in June. We expected to hold talks with the Secretary General of OPEC. Others, not us, are destroying OPEC."

Referring to Europe and Iran join financial channel, he said," So far, it has not shown positive signs for oil exports, there should be negotiations between regional countries using products of Iranian companies."

Speaking about INSTEX effect on oil exports and equipment purchases, Zangeneh added, "Until today, Europeans have not offered positive services in the field of oil; hopefully, the joint financial channel will be conducive to supply and purchase of oil equipment."