Oil min.:

Iran to react if Total divulges South Pars data

News ID: 3908133 -
TEHRAN, Feb. 15 (MNA) – Oil Minister Zanganeh said Total will need to pay compensation if it becomes certified that the French company has disclosed Iran’s South Pars data to Qatar.

Speaking at a live IRIB program, Bijan Zanganeh said the joint oil field in South Pars region will become operational by the end of the current Iranian calendar year (to end March 20) with a capacity of 355 thousand barrels per day.

“The recovery capacity of the reservoir can be lifted up to 100 barrels per day,” said the official adding that South Pars and West Karun remained as the most significant fields for Iran in terms of volume and value.

He also noted that Farzad joint field will come on stream in less than one year.

Referring to signing of a cooperation agreement with Total oil company, Zanganeh said the deal was undergoing technical and commercial considerations which will be accomplished within two months.

“Total holds certain political consideration which we have conveyed to the Iranian Ministry of Foreign Affairs,” underlined oil minister adding “the French company has announced its adherence to EU policies in case new sanctions are imposed against Iran.”

He emphasized that Iran demanded technology along with investment; “we could domestically accomplish later stages of South Pars based on what was learned from Total.”

The official pointed to the need for technologies suitable for efficient recovery from the country’s oil and gas field even in case of production drop.

Bijan Zanganeh, while recalling that data of only two out of 30 South Pars phases had been assigned to the French oil giant, added “if it is manifested that Total has passed on Iran’s secret information to the Qatari side, the issue will end up in a dispute since the French company will be required to pay reimbursement.”

“Some are eager to see new sanctions against Iran and are opposed to the country’s development in peace.”

He went on to recount on Oil Ministry’s plans for refineries for prevention of selling raw materials; “liquid consumption in the coming year will be limited to oil, gas, petrol and aviation fuel since use of fuel oil, kerosene, LPG and gas oil will be close to zero.”

Iran’s oil minister also reported that with completion of the 1st phase of Setareh Khalij Fars Refinery, Iran will stop importing gasoline from March.

On oil sales, the official said Iran previously shipped its crude oil to only six countries while the country’s currently enjoys the ability to decide on customers and perceives no limitations on receiving oil revenues.

He maintained that domestic consumption had to remain constant for increased output to be directed towards exports.

Zanganeh said volume of liquid fuel consumption in Iranian power plants had dropped from 40 to 10 per cent in the recent years and called for production of higher quality vehicles which consume CNG.

The member of Iranian Cabinet also stated that gas output capacity of South Pars was 500 million cubic meters announcing that 11 new phases in the joint field will become operational within a month.

Oil minister further pointed to the need for 45 to 50 billion dollars of investment in the Iranian petrochemical industry 30 per cent of which will be supplied by domestic investment while the rest will be obtained through foreign financing.

At the end of his remarks, Bijan Zanganeh called for new investments for renovation and optimization of refineries through qualified human resources and new technologies.

HA/3907728

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