OPEC Endorses Iran Exemption from Production Cut

OPEC Endorses Iran Exemption from Production Cut

Iran managed to secure exemption from an agreement by OPEC members to reduce their oil production to prevent supply glut and bolster the prices.

Members of the Organization of the Petroleum Exporting Countries (OPEC), during their 175th meeting in Vienna on Thursday, agreed to cut their oil output by 800,000 barrels per day in the first half of 2019.

Iran, Libya and Venezuela, given their exceptional conditions, are exempted from the agreement to cut their crude oil output.

Iranian Minister of Petroleum Bijan Zangeneh, upon arrival in Vienna and even before that, had repeatedly insisted that Iran should be exempted from any decision to cut OPEC production because of the US sanctions.

Before OPEC Meeting, Saudi Arabia”s Minister of Energy Industry and Mineral Resources Khalid al-Falih has stressed the need for the cooperation of all OPEC members to strike an output cut agreement.

The fifth joint meeting of OPEC and non-OPEC producers will be held on Friday, December 7 at OPEC Secretariat in Vienna, with 14 OPEC members and 10 non-OPEC producers.
Sources have confirmed that Russia and other non-OPEC producers will contribute to the production reduction by at least 400,000 b/d for improving oil prices in the market.

Iran eyes 630 mcm/d Gas Recovery from South Pars

Iran eyes 630 mcm/d Gas Recovery from South Pars

Iran”s gas recovery for the supergiant South Pars gas field is projected to increase by 56 mcm/d by the end of the current calendar year to March 20 2019, which will bring the country”s total gas production capacity from the field to 630 mcm/d.

The CEO of Pars Oil and Gas Company (POGC) said this would be a new record in Iran”s gas production from the joint offshore gas field. Qatar share the field with Iran in Persian Gulf waters.

Mohammad Meshkinfam said as winter approaches and given the necessity to provide sustainable and continuous gas to the country, exploitation of new phases of South Pars was accelerating.

He said the 4th train of South Pars Phase 13 refinery would come online within the next two weeks. The facility will be fed by the gas supplied from other phases of South Pars.

The official added that two offshore platforms belonging to Phase 14 of the field would become operational, each adding 28 mcm/d to the field”s sour gas production capacity.

He further said that the onshore refining facility of Phases 22-24 was ready for startup.

The offshore topside of Phase 22 has been successfully installed and it is being prepared for startup and it is expected to come online by the next three weeks with 500 mcf/d of production capacity, he added.

He said Iran is currently producing 580 mcm/d natural gas from the field which is expected to cross 630 mcm/d by late March 2019.

Iran plans 3 million barrels of oil sale to private exporters

Iran plans 3 million barrels of oil sale to private exporters

Iran plans to sell 3 million barrels of crude oil to private companies in the third round of sales aimed at bypassing US sanctions, Minster of Petroleum Bijan Zangeneh says.

“The license required has been procured from the three branches of power for three million barrels of oil to be sold on Iran”s energy bourse, 100 percent in rials,” Zangeneh said on Wednesday.

However, payment in foreign currencies is also possible for those who want to buy oil in non-rial currencies, he added.

“If a person wants to buy oil on the bourse in foreign currencies, oil will be provided in foreign exchange and if a person wants rial-based purchase, the supply will be carried out in rials.”

Iran began selling oil to private buyers on its energy exchange first in October when one million barrels were offered at $74.85 a barrel as the US prepared to reimpose sanctions on the country”s oil sector.

The second offer came after the sanctions were reinstated in November and 700,000 barrels of crude oil were sold to private companies for export.

According to the Ministry of Petroleum”s Shana news agency, three private companies paid $64.97 per barrel for two crude shipments of 245,000 barrels each and one shipment of 210,000 barrels.

“Oil buyers on the bourse have been able to export their “black gold” and there has been no problem in this regard,” Zangeneh said on Wednesday.

In the first and second round of sales, buyers would pay 20 percent of the total value of their purchases in Iran”s national currency, with the remaining payments made in foreign currencies after loading.

Minimizing Reliance on Petrodollars, Iran Strategy: Zangeneh

Minimizing Reliance on Petrodollars, Iran Strategy: Zangeneh

Iranian Minister of Petroleum Bijan Zangeneh said despite the fact that among the oil-exporting countries in the region, Iran”s budget was the least dependent on petrodollars, the macroeconomic policy of the country “is to reduce the dependence of the budget on oil revenues.”

According to ICANA, Mr. Zangeneh, said the administration was seeking to minimize its dependence on oil revenues in the national budget bill, which was why tax duties would increase in the coming year.

The Iranian Minister of Petroleum, emphasizing that the current situation was an opportunity for Iran, saying plans needed to be worked out to diminish expenses in various sectors.

He further said that the price per barrel of oil in the next year”s budget bill was set at $54 per barrel.