Minister Reports $3.5 Billion Petchem Investment in 13th Administration

Minister Reports $3.5 Billion Petchem Investment in 13th Administration
(Tuesday, November 21, 2023) 15:36

Tehran (NIPNA) - Iranian Petroleum Minister Javad Owji delivered a comprehensive report to President Ebrahim Raisi, revealing a substantial $3.5 billion investment in the petrochemical industry during the Thirteenth Administration.

The announcement comes amidst a larger plan involving 182 projects, valued at a staggering $76 billion, aimed at bolstering both upstream and downstream oil production capacities.

Addressing the pivotal role of this investment in the petrochemical sector, Owji highlighted the creation of 15 million tons of nominal capacity and 5 million tons of operational capacity. This development underscores Iran's commitment to expanding its footprint in the petrochemical domain.

During President Raisi's visit to the Ministry of Petroleum, part of his ongoing oversight of the country's executive apparatus, Owji expressed gratitude for the unprecedented support extended to the oil industry by the current administration. He lauded the ministry's efforts during the two-year tenure under the people-centric government, acknowledging the collective dedication of all involved in the nation's oil sector.

The petroleum minister emphasized that key priorities for the 13th Administration were meticulously planned, with paramount focus placed on investments in pivotal projects. These investments have been strategically allocated across various areas including production maintenance, oil and gas growth, enhanced production from shared fields, gas collection, natural gas storage, new oil and gas field exploration, refinery capacity increases, product quality improvements, petrochemical product capacity expansions, and gas processing enhancements in gas refineries.

Owji elaborated on the successful completion and initiation of 132 projects, predominantly comprising upstream and downstream oil initiatives, which have contributed an estimated value of $28.5 billion. Emphasis was placed on selecting projects that would significantly impact oil and gas production growth.

Additionally, the ministry has outlined plans for 50 new projects valued at $47.5 billion, summing up the total investment in the oil industry to $76 billion across 182 projects aimed at augmenting production capacities both upstream and downstream.

Highlighting the imperative of investment for realizing production growth, Owji emphasized that each of these initiatives falls under the purview of the four primary companies within the Ministry of Petroleum.

Ongoing efforts to accelerate the development of long-delayed projects, particularly those stalled for 14 years like the South Pars Phase 14 refinery construction, have gained momentum in the 13th Administration. This surge in development signifies a crucial advancement in Iran's oil sector.

Wrapping up, Owji noted the resolution of several long-pending semi-completed projects, many of which have now become operational. Notably, in the South Pars joint field, which accounts for 70% of the country's gas supply, Phase 11 operations have seen substantial progress, with nearly 100% completion achieved under the current administration.

In addition to South Pars, other shared fields such as Azadegan and Yaran have witnessed proactive initiatives, solidifying Iran's commitment to boosting gas production. Moreover, standalone gas field developments including Tous, Day, Aghar, Homa, Varavi, Kish, and others are well underway in the country.

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