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

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

WB plans to issue loan to finance another road project in Azerbaijan
WB plans to issue loan to finance another road project in Azerbaijan
Azerbaijani Finance Ministry places medium-term bonds on auction
Azerbaijani Finance Ministry places medium-term bonds on auction
1Q2021 value of operations via interbank national settlements system in Azerbaijan down
1Q2021 value of operations via interbank national settlements system in Azerbaijan down
Loading Bars
Latest
Attack on Syrian government forces repelled in Idlib, at least ten militants killed
WHO records over 817,000 new daily cases of COVID-19 worldwide
Iraq decides to quarantine evacuees from India for 14 days as total cases hit 1,108,558
UK records another 2,047 coronavirus cases, 5 deaths
Azerbaijan marks Day of Victory in Great Patriotic War
Iranian trucks do not transport goods to Karabakh - Iranian embassy
NCDC: Georgia to receive extra half a million Sinopharm vaccine doses in June
Iran may extend cooperation on inspections with IAEA
Consumers must protect IoT devices - Fortinet
Azerbaijan’s Baku city has beautiful National Gymnastics Arena – Russian gymnast
Baku holds awarding ceremony of Rhythmic Gymnastics World Cup (PHOTO)
Azerbaijani team reaches finals in group exercises as part of Rhythmic Gymnastics World Cup (PHOTO)
WB plans to issue loan to finance another road project in Azerbaijan
Any attempt to glorify fascism is disgusting - Russian expert
Group team competitions underway in Baku as part of Rhythmic Gymnastics World Cup (PHOTO)
Azerbaijani ADA University sсreens film timed to Day of Victory in WWII (PHOTO)
Azerbaijan names finalists in exercise with clubs as part of gymnastics World Cup in Baku
Azerbaijani gymnast reaches finals in exercise with ribbon as part of World Cup in Baku
Iran providing much needed mechanization for farmers in Qazvin Province
Germany’s import of steel from Turkey up
Azerbaijani president allocates funds for construction of new school in Shusha
Funds allocated for construction, repairs of educational institutions in Baku
Uzbekistan interested in co-op with French pharmaceutical company
Funds allocated for creation of heat supply system in Azerbaijan’s Shusha
France’s import of steel from Turkey up
Iran's Energy Exchange announces products to be on sale on May 9
Azerbaijani Finance Ministry places medium-term bonds on auction
Cotton spinning factory of Turkmenistan’s Lebap region names production data
Chevron should remain cautious in further increasing oil & gas production
Azerbaijan to continue online lessons in 10th-11th grades, minister says
Foreign shipping lines expected to return to Iran
Austria increases import of steel from Turkey
Fars Province to be connected to north-east and south-east of Iran via railway line
1Q2021 value of operations via interbank national settlements system in Azerbaijan down
United Arab Bank turns around with Dh10.2 million net profit
Azerbaijan's MoD shares video about Shusha - cultural capital of Azerbaijan
New jobs created in Iran's Ardabil Province
Turkmenistan's Turkmengas opens tender for overhaul of gas turbine engines
Iran’s Bahar Azadi gold coin price falls
World Cup in Baku became one of my favorite competitions - Azerbaijani gymnast (PHOTO)
Khazar Consortium opens tender for purchase of controller
Value of Iran's import of Turkish steel in 4M2021 grows
Russia’s coronavirus reproduction rate remains below 1
Azerbaijan sets up new military units in liberated lands (PHOTO)
Kazakhstan increases exports to UAE
Best moments of second day of Rhythmic Gymnastics World Cup in Baku (PHOTO)
Kazakh gymnast shares impressions of Rhythmic Gymnastics World Cup taking place in Baku
Cult of personality of Garegin Nzhdeh in Armenia can be compared with that of Hitler in Nazi Germany – Russian analyst
Azerbaijan shares data on number of vaccinated citizens for May 8
EU sceptical on vaccine waiver, but ready to discuss proposal
Azerbaijan confirms 649 more COVID-19 cases, 1,720 recoveries
Iran declares details of exports from Ardabil Province
Uzbekistan projects volume of direct foreign investments for 2021
Exports via Iran's Sistan and Baluchestan Province up
Turkey's 4M2021 export of steel to Georgia surges in value
China boosts import of Azerbaijani products y-o-y
Azerbaijan's Central Bank unveils data on foreign exchange transactions over March 2021
Azerbaijani Ro-Pax type ferry reaches Kazakh port of Kuryk (PHOTO)
G-7 countries back Taiwan's observer status in World Health Assembly
Lack of minefield maps delays mine clearance - Trend TV
Uzbekistan’s 1Q2021 cars export revealed
Results of Azerbaijani gymnasts’ performance in exercises with clubs, ribbons as part of Rhythmic Gymnastics World Cup in Baku (PHOTO)
Turkish Energy Ministry prolongs oil, gas exploration licenses for several companies
Azerbaijani president displayed successful strategy on battlefield and in media - two tactics of Great Victory
Turkmenistan sees active dev't of cotton industry
Latvia reveals main economic indicators of bilateral cooperation with Georgia
Iran discloses number of restored mines in South Khorasan Province
Germany's confirmed coronavirus cases rise by 15,685
Azerbaijan's CBC radio starts broadcasting in Karabakh
Iran's Khorasan Razavi Province to increase trade with Turkmenistan
First Vice-President Mehriban Aliyeva made Instagram post on Shusha (VIDEO)
Iran to import Coronavirus vaccine - President Rouhani
Uzbekistan, Kazakhstan implementing road and railroad construction projects
Competitions in Baku always held at highest level - Slovenian gymnast
Azerbaijani Defense Ministry discloses events to be held on occasion of Victory Day - May 9
Buy/sell operations at Iran Mercantile Exchange revealed
Iran Khodro Diesel Company boots its production
Azerbaijan’s Baku city always warmly welcoming - Ukrainian gymnast
Uzbekistan's international reserves grow
Sri Lanka approves Pfizer COVID vaccine for emergency use
Turkmenistan signs decree on pardon for Qadr Night
Uzbekistan Railways plans to resume railway communication with Russia and Kazakhstan
Iran's IMIDRO begins study of public and comparative discovery in Albalaq mine
Azerbaijan’s Azerenergy company names winner of tenders for maintenance of IT equipment
Number of Azerbaijani insurance companies entitled to operate within Green Card system increase
Kazakhstan’s Intergas Central Asia company opens tender to attract services
Baku Stock Exchange unveils 4M2021 transactions on corporate securities
Azerbaijan expanding cooperation with Czech Republic in nanotechnologies
Iran reveals COVID-19 data for May 8
Uzbekistan suspends flights to Turkey and India
Scientific conferences, organized by Baku Higher Oil School on occasion of 98th anniversary of National Leader Heydar Aliyev, are coming to an end (PHOTO)
Uzbek ministry extends tender for pumping and power equipment
Saudi Crown Prince, Pakistan’s PM hold talks as bilateral agreements, MoUs signed
Russia records another 8,329 new daily coronavirus cases
Kazakh-Turkish JV launches tender to attract equipment inspection services
Iran's Shahid Tondgooyan Petrochemical Company plans to increase production
Azerbaijani Central Bank makes allocations for software platform support
Israel among 12 ‘green’ countries okayed for UK summer travelers
Rhythmic Gymnastics World Cup in Baku organized at high level - Georgian gymnast
Kazakh oil refinery opens tender to attract examination services
All news