Puzzle of gas re-injection in Iran; economical or not?

Baku, Azerbaijan, March 19

By Dalga Khatinoglu - Trend:

Iran has announced that some 93 million cubic meters per day of natural gas was re-injected to old oil fields during the current year. Iran's fiscal year will end March 20.

During last year, Iran's gas re-injection to oil fields which are in their second half-life increased by one billion cubic meters on year.

Iran hasn't commenced any new oil field since 2007 due to sanctions and withdrawal of foreign companies and some 80 percent of the country's active oil fields are in their second half-life and re-injection of 290 million cubic meters per day (mcm/d) natural gas is needed to keep the crude oil production level high and enhance the recovery rate.

The oil recovery factor in Iran is very low, about 20 percent in average, means In other words, Iran is able to extract just 20 percent (157 billion barrels) of its oil reserves. The current active fields lose about 8 to 13 percent of production volume.

Fereydoun Barkeshli, the former general manager of National Iranian Oil Company (NIOC) in OPEC and International Affairs told Trend March 19 that Iran's injection policy remains a puzzle for most of the time, because it is always injection that must quietly compensate for domestic consumption and even exports. "However the ministry of petroleum has an aggressive injection policy in order to boost oil production capacity," he said.

Iran is producing about 2.8 million barrels of crude oil per day of which some 1.7 million barrels is consumed domestically.

Barkeshli, who is currently a private energy consultant and president of Vienna Energy Research Group believes that "according to current administration in less than ten years time, the country will virtually have a ministry of gas rather than ministry of oil".

"Most of NIOC projects that are going to be put for tender hopefully in 2015 are gas and Iran's energy diplomacy will center around gas projects," he said.

Iran's primary energy consumption, excluding flared gas, gas re-injection, derived from the National Iranian Oil Refining and Distribution Company's (NIORDC) annual reports and Oil Ministry officials' statements:

According to the official statistics, Iran's gas consumption has increased by about 48 times during the last 25 years, while the figure for oil production usage increased less than three times.

According to Iran's Oil Ministry studies, the country needs $70 billion to invest in projects for raising oil and gas recovery rate and extract $700 billion worth of oil and condensates from old fields.

Barkeshli says that Iran's initial plan for produced gas is 30 percent domestic consumption, 30 percent for exports and the remaining for injection. "This should very challenging but possible one sanctions begin to recede," he said.

Iran wants to increase the gas production by 100 mcm/d during the next year. In case, the Phases 12, 15, 16, 17 and 18 of giant South Pars gas field become operational fully, then it's expected that the country's total raw gas production capacity would increase from the current 660 mcm/d to 800 mcm/d at the end of next fiscal year and it's expected the volume increases to 1.1 bcm/d by 2020.

Total Gas consumption

Current year (bcm)

Last year

(bcm)

Housing sector

91

88.9

Industrial sector

32.45

29.8

Power plants

50.5

36.8

Re-injection

33.9

32.9

Flaring

11.7

11.7

Export

10

9

Total

229.55

209.1

Iran has two gas trade deals with Iraq, two with Pakistan and Turkey, as well as one memorandum of understanding with Oman that adds up to a total of 150 mcm/d of natural gas exported to these countries by 2020. Iran is evaluating other markets like Kuwait, UAE, Saudi Arabia and Europe.

Iran is selling each 1000 cubic meters of gas to Turkey at about $480.

Edited by CN

Dalga Khatinoglu is an expert on Iran's energy sector, head of Trend Agency's Iran news service. Follow him on @dalgakhatinoglu

Subscribe to Trend in Google News! Subscribe
Turkey expresses interest in expanding activities of Turkish companies in Kyrgyzstan
Turkey expresses interest in expanding activities of Turkish companies in Kyrgyzstan
Turkish president and German chancellor holding talks in Istanbul
Turkish president and German chancellor holding talks in Istanbul
Agreement with Azerbaijan on additional gas supplies aimed at ensuring Turkey's gas reserves – Erdogan
Agreement with Azerbaijan on additional gas supplies aimed at ensuring Turkey's gas reserves – Erdogan
Loading Bars
Latest
French ambassador leaves Belarus - embassy
Google dedicates doodle to Azerbaijan's Restoration of Independence Day
Chronicles of Victory: President Aliyev announces that Azerbaijan's armed forces raise Azerbaijan's flag over ancient Khudaferin Bridge (VIDEO)
Chronicles of Victory: October 18, 2020
Georgian CEC calls on public to participate in October 30 municipal run-offs
Turkey expresses interest in expanding activities of Turkish companies in Kyrgyzstan
Helicopter crash kills three in Germany
As soon as possible, we will return to their native lands IDPs who lived in suffering for 30 years - Azerbaijani president
Heydar Aliyev did not allow holding of referendum on preservation of Soviet Union in Nakhchivan - President Aliyev
Celebrating October 18 solemnly or thanking someone for it is absolutely inappropriate, says Azerbaijani president
UK records more than 40,000 COVID cases for fifth day in a row
Cargo movements in Iran’s Qeshm port up
Amendments related to national holidays completely correspond to historical realities - Azerbaijani president
First VP of Azerbaijan makes Instagram post after meeting with heroes of Second Karabakh war (PHOTO)
Georgia faces fifth Covid-19 wave, observing recommendations much needed, NCDC Head says
UNHCR opens alternative route of aid to Afghanistan via Uzbekistan
Azerbaijan allocates funds for construction of Fuzuli Memorial Complex
Master plans of Zangilan, Gubadly, Kalbajar and Lachin being developed - Azerbaijani president
Azerbaijani economy grows by about 5%, non-oil economy by 20% over 9 months - President Aliyev
Large settlement will be created based on "smart village" concept in village of Dovletyarly - Azerbaijani president
We significantly brought closer day of IDPs return to their homelands - President Aliyev
Projects under implementation in Fuzuli show our determination and potential - Azerbaijani president
We will restore Fuzuli city, settlements of Fuzuli district - President Aliyev
Every person who visits Fuzuli becomes witness of Armenian vandalism and no one can deny this, says Azerbaijani president
This glorious victory will forever remain in history of Azerbaijan - President Ilham Aliyev
After liberation of Fuzuli, cases of desertion in Armenian army became even more widespread - President Aliyev
After Fuzuli was liberated it created more opportunities to move towards Shusha - President Aliyev
President Ilham Aliyev and First Lady Mehriban Aliyeva view conditions created at Fuzuli International Airport
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,896 more COVID-19 cases, 764 recoveries
Azerbaijani president, first lady meet with members of Fuzuli district's general public (PHOTO)
Azerbaijani president, first lady view conditions created in Fuzuli Central City Park, plant trees there
President Aliyev lays foundation for Digital Substation Management Center in Fuzuli
President Ilham Aliyev lays foundation stone for Fuzuli Memorial Complex, city of Fuzuli
Liberation of Fuzuli during war was very important - President Ilham Aliyev
October 17 will forever have special place in history - President Ilham Aliyev
President Aliyev lays foundation stones for Fuzuli-Aghdam highway and new “smart village” in Fuzuli (PHOTO)
President Ilham Aliyev and First Lady Mehriban Aliyeva visit Fuzuli district (PHOTO)
Ukrainian MPs visit Ganja where cilivians died as result of missile attacks by Armenia (PHOTOS)
Iran reveals COVID-19 data for October 17
BSEC SG to visit Georgia today
Over 600 COVID-19 patients in Kazakhstan in critical condition
Energy Community highlights leading energy projects implemented in Georgia
First concert of Azerbaijan's trio under leadership Isfar Sarabsky takes place as part of European tour (PHOTO/VIDEO)
Buy/sell operations at Iran Mercantile Exchange soar
Graduation ceremony of Azerbaijani servicemen participating in courses held in Turkey
Heavy rains lash India's Kerala, red alert sounded in 5 districts
Share of households with internet access increases in Georgia
Seventeen U.S. missionaries and family kidnapped in Haiti
Iranian private investments in Tajikistan expected to grow
1,900 new COVID-19 cases reported in Kazakhstan
IRICA unveils data on exports of Iran to Belarus
Azerbaijan national team takes second place at Grand Slam judo tournament
8 killed, over 20 injured in traffic accident in Peru
1 deputy killed, 2 injured in "ambush shooting" in U.S. Texas
Israel's active COVID-19 cases below 20,000
At least 6 dead, 1 missing after ship sinks in Brazil
Azerbaijani Foreign Ministry shares publication in connection with anniversary of Armenia's missile attack on Ganja
Information about firing of Azerbaijani army in direction of Arazdeyen does not reflect truth - Ministry of Defense
Sudan protest calls for military coup as political crisis deepens
Chronicles of Victory: President Ilham Aliyev addresses the nation on October 17, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 17, 2020
District Election Commissions to sum up protocols of municipal polls in Georgia
A working meeting of the delegations of Uzbekistan and Afghanistan takes place
Russian authorities say 18 dead in suspected alcohol poisoning in Yekaterinburg
UN chief welcomes unilateral cease-fire in CAR
Iran’s Bahar Azadi gold coin price continues to rise
Work on increasing wages, pensions and benefits begins - Ministry of Finance of Azerbaijan
Official talks reasons for increase in gas prices in Azerbaijan
Post-conflict reconstruction projects launched by President Ilham Aliyev is unprecedented - Aide to President (VIDEO)
Azerbaijani IDEA signs agreement with All-Russian Society for Nature Conservation (PHOTO)
Saudi Arabia's PIF launches offshore platform tourism project
NATO Special Representative for Caucasus to visit Azerbaijan
Iran's Energy Exchange announces products to be on sale on October 17
Iran reaches grow in exports to Kyrgyzstan
World gas prices grow by 20-30 times compared to last year - SOCAR
Latvia to gift Georgia 83,070 doses of Pfizer jab
Earthquake hits southern Iran
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,681 more COVID-19 cases, 675 recoveries
South Caucasus countries need to coordinate to open communications - Pakistani diplomat
Azerbaijani President Ilham Aliyev signs decree on raising social payments
Iran reveals COVID-19 data for October 16
Uzbekistan to privatize public park in Tashkent
Muslims all together sympathetic with Azerbaijan - Palestinian ambassador
Iran's exports to Kazakhstan up
SOCAR Georgia Gas opens tender on pickup trucks through operating lease
Turkish president and German chancellor holding talks in Istanbul
Novak does not rule out recurrence of energy crisis in Europe, urges its prevention
Azerbaijani official talks victims of Armenian attacks on Tartar during Second Karabakh War
Centuries needed to revive nature of Azerbaijan's Karabakh - minister
Azerbaijan raises electricity and gas prices
Restoration work in Azerbaijan’s liberated territories show positive trend – Kyrgyz ambassador
Over past 25-30 years, no country independently conducted such large-scale reconstruction in post-conflict period - aide to Azerbaijani president
Armenia must take serious and positive steps to open communications - Azerbaijani president's assistant (Exclusive)
Azerbaijan looks to sign document on demining liberated territories with France
Azerbaijan's Air Defense Units carrying out combat firing exercises (VIDEO)
Azerbaijan's Karabakh to be famous for its "smart cities" and agricultural products - Turkish ambassador
Iran boosts exports to Russia
Russia registers over 1,000 coronavirus deaths in 24 hours first since pandemic starts
All news