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I I r r a a n n E E c c o o n n o o m m y y U U p p d d a a t t e e
Issue 124/2016 – Tuesday November 15th Content
Three new fields add 220,000 bpd of additional oil to Iran’s production capacity
Another media-coverage for Ambassador’s participation at a session held by secretariat of Govt.-Private Sector Dialogue Council
Iranian and Indian securities & exchange org. officials met in Tehran
IMIDRO and BHF Bank discussed cooperation for industrial project finance
Three new fields add 220,000 of oil to Iran’s production capacity
On Sunday afternoon, three Iranian new oil fields namely the 1st phase of the Yadavaran (115,000 bpd) and North
Azadegan (75,000 bpd) fields as well as the North Yaran (30,000 bpd) fields was officially opened by President Rouhani and his accompanying high-profile delegation comprising Petroleum Minister Bijan Zangeneh, Energy Minister Hamid Chitchian, Minister of Road & Urban
Development Abbas Akhundi, and Secretary of Supreme National Security Council Ali Shamkhani.
The fields are located in southwestern province of Khuzestan, west of the Karun River, and are shared with neighboring Iraq. The new fields will produce 220,000 bps of oil.
Oil production capacity at west of Karun River
increased by 220k bpd and is planned to raise to 1 million bpd if $18bn is made in investment
Speaking at a ceremony to open the field, Rouhani expressed hope that the production of crude oil from the fields located in the West of Karun River will reach one million barrels per day by
attracting technology and finance.
According to the official website of the Iranian presidential office, Rouhani said that the oil fields in the west of the Karun River need
$18 billion in investment along with advanced technology to increase recovery rate and achieve the target output of 1 million bpd.
Rouhani cited the youth
unemployment, especially among the educated youth as the most important challenge and problem facing the country and Khuzestan Province in particular and
underscored that “establishing sustainable employment requires capital and modern technology.”
President admits that Southwestern province of Khuzestan is suffering from air pollution and youth unemployment
Petroleum Minister Bijan
Zangeneh told the ceremony that the government plans to make some 1,000 billion tomans (about
$270 million) in five years in investment in this region
(Khuzestan Province) in order to
“remove the scourge of poverty from this oil-rich province.”
Of note, Khuzestan is among Iranian provinces that sits on massive underground oil wealth but is badly stricken with poverty, unemployment and heavy
pollution caused by flaring gas from drilling oil operations in the region. In the speech he delivered on Sunday, President Rouhani promised improving the province’s environmental quality and
explained that the [polluting] gas flaring produced at the Yaran oil field is because of the absence of NGL (Natural Gas Liquids) facilities (technology).
In an article published on the front-page of the reformist daily Etemad on Monday penned by Energy Journalist Reza Zandi, the author argues that the opening
2 ceremony conveyed both
important national and
international messages. From a domestic vantage point, argues the author, the advantage of the opening of the new field is on the President’s pledge of making investment in this region to remove poverty and create jobs for the youth, while from an international perspective, the importance of the President’s speech was that amidst growing concerns over the Trump Jump, Rouhani made his remarks in a way as if he is confident that President-elect Trump cannot whatsoever abrogate the nuclear deal.
The author also points out to another important aspect of the opening of three new oil fields, i.e.
it took place on the eve of the 171st OPEC meeting in Vienna during which individual quotas will be defined for the member states.
“Iran wants to be exempt from any production cut plan because of being under sanctions for several years. Those who have doubt about this standing of Iran can review the remarks uttered by President Rouhani on Sunday where he underscored that today we have achieved the production level of 220,000 bpd in the West of Karun region and this should rise to 1 million bpd,” wrote the author of Etemad editorial. “This, along with Petroleum Minister
Zangeneh’s remarks that some
$18-$20 billion is required for investment in western Karun River
imply that Iran won’t be ready to limit its production,” concluded the author.
Another media-coverage for Ambassador’s participation at a session held by secretariat of Govt.-Private Sector Dialogue Council
The economic daily Donyay-e Eghtesad (means World of Economy) prepared a report on Tuesday on the 2nd expert-level economic roundtable of the Government-Private Sector Dialogue Council held earlier this week, participated by Korean Ambassador to Tehran Kim Seung- Ho. The meeting was also
attended by Behruz Hadi-Zonuz, a renowned Iranian economist and faculty member of the Allameh- Tabatabaie University, along with representatives of a number of ICCIM expert commissions and heads of a number of the country’s commerce chambers.
Having referred to the Korean ambassador’s remarks who
divided his country’s development processes into three periods, the daily argues that in its third development period, this Asian country has institutionalized collaboration and dialogue between the government and private sector so much so that today, according to this coutnry’s laws, the government is obliged to go to its people and receive their viewpoints before adopting new policies or give place to new laws.
Donyay-e Eghtesad: Korea has institutionalized
collaboration between govt.
and private sector
“The Korean ambassador described the government’s
approach of collaboration with the private sector as the key for his country’s economic development,”
wrote Donyay-e Eghtesad.
The daily argues that the two countries of Iran and Korea kick started their development
program simultaneously but while the former left behind in
implementing its development objectives, the latter (Korea) managed to achieve its objectives and today is recognized as an economically-developed country globally.
Donyay-e Eghtesad explains that according to the objectives set forth in the Fifth Development Plan (2011-2015) the Govt.-Private Sector Dialogue Council has been established aimed at exchanging views of representatives of the government and private sector and facilitating economic activities of private sector and eliminating business barriers. The council comprises minister of Economic Affairs & Finance (head of the council), CBI governor, vice president for planning & strategic supervision, minister of Industry, Mine & Trade, minister of Labor, Cooperative & Social Welfare, minister of Agriculture, minister of Petroleum, minister of Energy, two deputies of head of Judiciary,
3 head of the Majles Economy
Commission, head of the Majles Planning & Budget Commission, head of the Majles Industries &
Mines Commission, Head of the Majles Agriculture Commission, ICCIM president, secretary general of the Cooperative Chamber, mayor of Tehran and eight managing directors of major Iranian private and cooperative companies. Sessions are held every 15 days.
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Iranian and Indian securities
& exchange org. officials met in Tehran
Shapour Mohammadi, president of the Iranian Securities &
Exchange Organization (SEO) met with Kumar Sinha, chairman of the Securities & Exchange Board of India (SEBI), the daily Donyay-e Eghtesad reported on Tuesday.
The Indian official proposed preparing a mutual agreement for facilitating knowledge transfer and cooperation in various areas such as development of technical infrastructures and unification of rules and regulations.
Also, SEO President Shapour Mohammadi welcomed facilitating mutual cooperation and also told Sinha that SEO pursues some important objectives in international realm including seeking a regular membership in the International Organization of
Securities Commissions (IOSCO1) as well as the full membership of TSE (Tehran Stock Exchange), the Iran Merchandise Exchange (IME) and Fara Bourse2 in the World Federation of Exchanges (WFM).
IMIDRO and BHF Bank discussed cooperation for industrial project finance Hans-Gunter Wiesenack,
managing director and a number of senior executive directors of Frankfurt-based BHF Bank met with Mehdi Karbasian, head of the Iranian Mines & Mineral Industries Development & Renovation
Organization (IMIDRO), affiliated with the minister of Industry, Mine
& Trade, Donyay-e Eghtesad wrote on Tuesday. Wiesenack said the bank has been involved in a number of Iranian projects including the ones belonging to IRALCO (Iranian Aluminum Company) and the National Iranian Copper Company and so on. He underscored that long-term plans can be developed for
cooperation and that the credit insurance arms in France and Germany, such a COFAS and Hermes can be used for
developing financial cooperation.
Mehdi Karbasian told Wiesenack that Iran has defined $30 billion worth projects in its mines &
mineral industries such as steel,
1 Founded in 1983, the IOCSO is an association of organizations that regulate the world’s securities and futures markets
2 Iran’s Fara Bourse operates in capital markets in both listed and unlisted securities
copper, aluminum, gold and the like that are ready to attract finance.
