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Iran Petchem Holdings Sign $6.4 bn Contracts to Ensure Sustainable Feedstock Supply

Iran Petchem Holdings Sign $6.4 bn Contracts to Ensure Sustainable Feedstock Supply
(Thursday, May 2, 2024) 15:37

TEHRAN (NIPNA) - Agreements worth $6.4 billion were signed to study the development of 16 gas fields in Iran, aiming to add approximately 127 million cubic meters to the country's gas production capacity to ensure sustainable feedstock supply for petrochemicals.

The agreements were signed between the petrochemical holdings and Iranian exploration and production companies. The signing ceremony, attended by Javad Owji, the Minister of Petroleum, Morteza Shahmirzaei, the CEO of the National Petrochemical Company (NPC), Mohsen Khojastehmehr, the CEO of the National Iranian Oil Company (NIOC), and several industry executives, marked a significant milestone in Iran's energy sector.

The total value of the agreements signed today is estimated at $6.4 billion. Upon implementation, these projects are expected to enhance Iran's gas production capacity, meeting the feedstock demands of the petrochemical industry.

NIOC has engaged in extensive negotiations with Iranian petrochemical holdings and exploration and production companies to develop the country's gas fields.

Consequently, agreements to study the development of 16 gas fields in southern and southwestern Iran and the Persian Gulf were signed with petrochemical holdings, petrochemical companies, and Iranian exploration and production firms.

Under these agreements, studies on the development of gas fields such as Zireh, Kharatonag, and Dargh with the aim of increasing gas production by 24 million cubic meters and an investment of $1 billion were entrusted to Petro Kaaveh Afagh Company.

Studies on the development of gas fields such as Sefid Zakhour, Sefid Baghoon, and Halgan, in cooperation with the Parsian Oil and Gas Development Group and Petro Pars Company, were also contracted.

Expected investments for the development of these fields amount to $800 million, which will ultimately add 27 million cubic meters to Iran's gas production capacity.

Moreover, studies on the development of gas reservoirs such as Zilaei, Karoon, and Shohadaye, in collaboration with Masjed Soleiman Petrochemical Company and PetroIran Development Company, were signed.

Additionally, agreements were reached for the development studies of Ahwaz and Maroon gas fields and the Kangan pressure boosting station with the Novid Zarchimi Investment Company, aiming to increase the country's gas production capacity by 7.7 million cubic meters, with an expected investment of $950 million.

The signing of these agreements signifies a strategic move towards enhancing Iran's gas production capacity to meet domestic demands and boost gas exports, playing a crucial role in the sustainable growth of the petrochemical industry.

With the completion of the studies and the implementation of these agreements, it is anticipated that around 25,000 direct and indirect job opportunities will be created, particularly in the regions where these projects are executed.

Moreover, as part of the social responsibility initiatives of the National Iranian Oil Company, one percent of the investment volume is allocated to social development projects, especially in oil-rich regions.

These agreements mark a significant shift as petrochemical holdings and companies, for the first time, engage in upstream activities to secure the required feedstock for their operations, maximizing the utilization of accumulated capital and contributing to the nation's prosperity.

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