Post on 30-Mar-2021
National Iranian Oil CompanyActivities in the 11th
GovernmentA Review
In the Nameof God
National Iranian Oil CompanyActivities in the 11th
GovernmentA Review
NIOC Public RelationsMay 2017
Preface National Iranian Oil Company (NIOC) has been in charge of
organizing, policy-making of oil industry including exploration,
drilling (excavation), production, research, development and oil
and gas export.
Having huge hydrocarbon reserves, this company is considered as
one of the world’s largest oil company. National Iranian Oil Compa-
ny upgraded due to the progress of science and technology in oil in-
dustry and the complexity of political and economical events. Thus,
national and regional policies, and cooperation of the important in-
dustrial countries in the field of energy provision and stabilization in
oil markets have been included in the company’s agenda.
National Iranian Oil Company is an organized collection of the
administrative departments, headquarters and organizational units,
production companies and technical service companies. Also, ac-
cording to the Article 44 of the constitution and authorizing var-
ious departments, this company has effectively acted in business
establishment in addition to monitoring the activities of oil indus-
try. Moreover, by financing and providing the inquired items of
development for updating knowledge and technology in the field
of exploration, excavation, and production, this company has taken
great strides with confidence in Iranian experts and staff.
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
3
4
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
The Main Mission of National Iranian Oil CompanyNational Iranian Oil Company is the main component of econom-
ic production as a symbol of national independence and the pillar
of oil and gas preservation. The production of petroleum, natural
gas and liquid hydrocarbon, processing, transmission, and its sale
and marketing as a part of national wealth and also the protec-
tion of this public asset is the major mission of this company.
To fulfill this mission, the installations and design of industrial
and manufacturing units, training of indigenous human resources,
5
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
maximum use of the national capabilities for the efficient use of
national wealth is also considered as missions and duties of this
company.
Objectives and Organizational Policies of National Iranian Oil CompanyThe objectives and policies of NIOC are subject to the basic
policies of the Islamic Republic of Iran. Furthermore, the
company’s vision is within the framework of national mac-
ro-economic policies and is consistent with valid and import-
ant documents like future perspective and 5-year develop-
ment plans. Therefore, NIOC has always tried to operate its
production and development plans within 20-year-old future
perspective.
Due to the significance of Iran’s oil industry, its perspec-
tive is of great importance in a way that different objectives
have been taken into account. The reduction of country’s
energy, maintaining the position of the second largest crude
oil producer in OPEC, which requires maintaining proper
distance of the other competitors in terms of production ca-
pacity, and also achieving the second position of the world
in natural gas production due to the necessity of common
repositories use, is of the important cases in the perspective
of oil industry.
6
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
Future Perspective of National Iranian Oil Company’s ActivitiesBased on the future perspective of the Islamic Republic of Iran by
the year of 1404, “Iran is a developed country with the first eco-
nomical, scientific and technical rank in the region with Islamic and
revolutionary identity, inspired in the Muslim world and possessing
constructive and effective interaction in international relations”.
Based on the development program, the activities of NIOC has
focused on establishing development-based view maintaining the
7
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
highest added value at the level of national economy, human re-
source and quality improvement with meritocracy approach as
a basic prerequisite of development, improving the productivi-
ty of production factors and orientation for optimal utilization.
Moreover, the company has concentrated on the development of
investment practices with a win-win approach, creation and de-
velopment of management systems and processes for converging
decision-making and making decision at different levels along with
the company’s objectives, establishment of economical institution
and relations of subsidiaries with this system, strengthening pres-
ence in the global energy market and planning for entering the mar-
ket of gas and oil equipments and services.
NIOC’s Performance in the 11th Government Oil industry in its growth path in the past century has spent days
with ups and downs, but undoubtedly, has experienced its climax
within the past three years and in the 11th Government (The gov-
ernment of Wisdom and Hope).
The increase of more than 1.5 times of oil, gas and condensates
average production from the beginning of the 11th government
until the end of 1395, reformation of contracts and fulfillment of
the major part of NIOC’S development objectives in the form of
memorandum of understanding and new agreements, the open-
ing of eleven standard phases of South Pars in the 11th govern-
8
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
ment, which is more than half of the operational phases in the
past three years, two-fold increase in crude oil export, and also,
a three-fold increase of production in the joint fields of West
Karoun, supporting the production of domestic products within
the framework of resistance economy and empowering Iranian
contractors, Amak plan and daily collecting of more than eight
million cubic meters of the associated gas at Khouzestan Oil-
field are clear examples of the power of oil industry in the 11th
Government.
9
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
mentWith the start of 11th government along with the achievements
of the government on the road to a comprehensive joint program,
which is the turning point of Iran’s political development, the
mechanism of Iran’s oil industry have changed a lot; and with the
opening of doors of this huge industry to the foreign investors, the
production process and development have been accelerated.
The Policy of Oil Ministry in contracts’ reformation and the defi-
nition of new contracts led to the attraction of foreign participation
and therefore, their presence of coalition with local companies ac-
celerated; and thereby, in addition to the conveyance of technolo-
gy and experience of world oil industry’s top companies, with the
provision of funding, the ground for the progress of oil industry’s
developmental objectives, particularly the increase of the produc-
tion from the joint fields have been provided.
During the year of 1395, NIOC signed multiple developmental
memorandums and agreements with top companies of oil indus-
try in the world and after passing from the breathtaking sanctions,
could enter oil industry into the mainstream.
According to the oil minister, Mr. Bijan Zanganeh, these memoran-
dums and agreements are so significant since they can create up to a
hundred thousand jobs in Iran and from this point of view; oil industry
would be responsible for the major part of job creation in the country.
10
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
with the purpose of modernization of rotating machines
new capacity.
11
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
-
- Agreement of NIOC and a consortium of TOTAL Companies
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
-
-
-leh.
13
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
-
-
-
-
of South Oil-Rich Regions and Pergas Consortium of eleven
14
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
-
-
15
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
th Government Joint field of South Pars is regarded as determination of Iran’s oil
industry and winning card of The 11th Government in oil industry
efflorescence.
This field is considered as Iran and world’s largest gas repository,
which individually accommodated half of the gas repositories of
Iran; and its significance is due to the fact that the main part of NI-
OC’s developmental plans have been devoted to this field.
Based on the last estimations, the gas volume of this part is about
14, 2 trillion cubic meters; and also, it has a reserve of over 19 bil-
lion barrels of condensates.
It is predicted that with full development of phases defined in South
Pars, gas production capacity of this joint field is amounted to over
eight hundred million cubic meters per day and the condensate capac-
ity is amounted to one million barrels per day; all this will be in line
with the increase of oil and gas production plan (as one of the special-
ized axis of resistance economy in the field of oil and gas).
Although the development trend of this huge gas field has been faced with
lots of buts and ifs in the period of sanctions, with the start of The 11th
Government, main part of production goals of this gas field was achieved.
Within the three last years, the operation of eight nominal phases of
12, 15, 16, 17, 18, 19, 20, and 21 (equivalent to 11 standard phases)
has had a 2.5 times jump in gas production of South Pars, and there-
fore, has been an important part of The 11th Government successful
16
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
performance in oil industry due to the fact that it has not only created
jobs, removed the problem of gas shortage in winter, but also provided
the possibility of gas export, condensates and LNG to other countries.
HydrocarbonsThe amount of 66 trillion cubic feet of gas exploration and 15 bil-
lion barrels of in-placed oil by the end of Dey 1395 suggest the
brilliant performance of NIOC in the realm of exploration.
17
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
Furthermore, over the past few years, NIOC could actualize much
of the production goals in a way that the daily production of crude
oil has increased from 2, 65 million barrels in 2013 to about 4 mil-
lion barrels in late 2016.
In addition, the daily output of gas from the fields over the coun-
try has increased from 490 million cubic meters in 2013 to 840
million cubic meters; in this regard, the production of South Pars
indicates a jump of nearly 2.5 times increase from 240 million
cubic meters per day to 570 million cubic meters. Meanwhile,
NIOC have been able to promote the daily output of South Pars
condensates from 325 thousand barrels in 1392 to 680 thousand
barrels.
Also, the increase of crude production in joint fields from 184
thousand barrels per day in 1392 to the amount of 380 thousand
barrels in 1395 is considered as another winning card of the 11th
Government.
Continuing its policies, NIOC could achieve the export amount of
two million and 985 thousand barrels of oil and condensates which
is twice higher than before JCPOA (Joint Comprehensive Plan of
Action).
Although most of Iranian oil purchasers are Asian customers, it
can be said that about 700 thousand barrels of oil are sold daily to
18
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
European customers as well; whereas, Asian customers as major
purchasers of Iran receive nearly to one million and 740 thousand
barrels per day and considering the fact that Asia is the world’s
largest energy consumer, NIOC has given priority to this region
based on 63-percent of oil export.
Yet, the record of 8 million barrels of daily export via eight tank-
ers has been registered in 1395 in Iranian Oil Terminals Company
which is regarded as another honor document for The 11th Gov-
ernment.
19
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
Oil Fields Due to the overlapping hydrocarbon resources of Karoun’s joint
fields with Iraq, the development of these fields has been another
developmental goal of NIOC, which has considerably increased
crude oil production capacity and will enhance the country’s posi-
tion in international energy markets.
Based on the targeted plans, crude production of Karoun’s joint
fields including five fields of North Azadegan, South Azadegan,
North Yaran, South Yaran, and Yadavaran with the capacity of 64
billion barrels of oil will increase up to 700 thousand barrels per
day by 1397; however, the climax of West Karoun fields’ develop-
mental plans can be searched in the opening of the first phase of
three fields of Yadavaran, North Azadegan, and North Yaran.
The President Dr. Rouhani has simultaneously inaugurated the first
phases of Yadavaran, North Azadegan, and North Yaran project on
Aban 23, 1395 and the daily output of Karoun’s fields reached over
260 thousand barrels per day.
The development of Yadavaran, North Azadegan and North Yaran
fields has been performed in the form of mutual-purchase con-
tracts; in the meantime, the first phase of Yadavaran project with
three billion dollars investment had been placed on Chinese Sy-
popeck Company’s agenda; and the first phase of North Azadegan
project has been finalized with 2 billion and 550 million dollars
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
investment by the leadership of China National Petroleum Corpo-
ration (CNPC). Also, North Yaran field has been developed with
less than 600 million dollars by Persia Oil and Gas Company.
The development of West Karoun’s field is strongly followed up as
one of NIOC’S major developmental plans and has had noticeable
achievements too. While the production volume of West Karoun’s
joint fields has been about 70 thousand barrels per day in June
2013 upon inception of The 11th Government, now the output of
these fields shows a record of 300 thousand barrels per day.
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
mentOne of the NIOC’s achievements in the Post- JCPOA period is the imple-
mentation of second phase of collecting associated gas in Kuzestan. This
is a great step in line with the cleaning air of Ahvaz and Khuzestan. Al-
though Amak project as one of the most prominent NIOC’s environmental
action has been presented over a decade ago, it has been encountered with
many obstacles due to sanctions and in Post- JCPOA period, these prob-
lems be removed and with the presence of well-known companies in this
field, people of Khuzestan could gain clean air in The 11th Government.
Increment of the Storage Capacity of Crude Oil in Iran Oil Terminals With the increase of oil production in Post- JCPOA period, crude
oil storage as one of NIOC’s strategies gained more importance.
Therefore, the construction of 10 million-barrel storage tanks for
crude oil has started in Genaveh and is swiftly in progress.
The implementation of this project, which is in line with the supporting
plan of crude oil export from Khark Island, is considered as strategic
action for the continuity of stable crude oil production and promoting
the oil industry value of the country.
Also, it is supposed that part of West Karoun oil output be reserved
in these tanks; that is, in addition to the crude oil storage of rich-oil
regions, West Karoun Oilfields will also be stored.
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
Concentration on the Development of South Pars Oil Layer The development of South Pars oil layer as one of the most important
NIOC’s plans is another great achievement of The 11th Government.
In the first phase of this project, which simultaneously opened with
five phases of South Pars in April 2017 with the presence of the
President, the daily production of 35 thousand barrels is fulfilled.
Still, the primary estimations suggest that in the second phase, the
production of 70 thousand barrels from this field will be possible.
Following the 11th Government policies of oil industry, the ini-
tial production of South Pars oil layer started in March 2017 and
the export of 550 thousand barrels of crude oil became possible.
Moreover, this strategic project has provided the possibility of 700
thousand oil barrels storage as well.
Resume of Crude Oil SwapIn the years that crude swap operation had stopped due to some
reasons, Iran Oil Terminals Company has renovated the full equip-
ments of the existing discharging platforms and there is no prob-
lem for anchoring tankers at the moment. In the case of resuming
the swap operation, North Oil Terminal is able to do this operation
with maximum power (of 120 thousand barrels per day).
Presently, for the improvement of swap infrastructures, the project of
pond construction is going to be implemented; with the implemen-
tation of this project in three phases, the discharge capacity of crude
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
oil can be increased respectively from 120 thousand barrels per day
to 500 thousand barrels, one million, and 1.5 million barrels per day.
-petitiveness ApproachIn the second year of The 11th Government, Oil Minister explicitly or-
dered that the production of 10 groups of oil industry consumer goods be
assigned to domestic manufacturers and industrialists; this was a valuable
step in operationalize the policies issued by resistance economy, non-in-
flationary exit from recession, and support of domestic production.
For the purpose of domestic production support, these items consist-
ed of 10 priority goods needed for oil industry including well-head
equipments, full down-hole equipments, down-hole and well-head
pumps, types of drilling, types of control valves, safety equipments,
pipes, explosion-proof electric motors, rotating machines, alloy
steels Cryogenic, drilling measurement tools, and smart Pigs.
Operation of 401 Social Responsibility Projects of Oil Indus-try in the 11th GovernmentNIOC’s honors are not limited to the developmental activities of oil
and gas industries; this company is in charge of financing and imple-
menting major parts of social responsibilities in southern provinces
of the country, in particular.
NIOC’s management has monitored the development projects of
A Re
view
of N
IOC A
ctivit
ies in
the 1
1th G
overn
ment
oil-rich regions since the beginning of The 11th Government and
supervised the completion and utilization of 401 projects in differ-
ent areas of social responsibilities in this industry.
To this end, more than 385 billion Tomans has been assigned to a
number of public works and has been defined and implemented in
various areas of education, sport, hygiene, services, and road.
Among these 401 projects, the number of 144 educational plans,
115 sport projects, 90 hygienic plans, 44 services plans, and 9 road
projects has been operationalized.
In addition, due to the importance of social responsibilities in oil
industry within the past three years, individual work packages has
been defined for the CSR activities in South Pars and West Karoun
and has been approved by Economic Council. In the case of final-
izing and implementing these packages, three percent of approved
credits by Economic Council for the developmental projects of
these regions will be devoted to the social responsibility area.
NIOC has definitely taken great steps in recapturing the world mar-
kets on the way of achieving goals in resistance economy, apply-
ing its considerable capacity and interactive policies of The 11th
Government; the steps, which due to the productive performance
of the world’s second largest oil company in the 11th government,
will take the train of oil industry to destination much earlier than
it looks.
Address: 3rd NIOC Hq., No; 18, Roudsar St., Hafez Ave., Tehran, Iran Tel: (+9821) 88946390, (+9821) 61627415, Fax: (+9821) 88943601
www.nioc.ir