Iran Press/ Iran news: Javad Owji made the remarks in a meeting with the Iranian Parliament’s Energy Committee members here in Tehran on Tuesday.
Elaborating on his ministry’s main jobs done over the past two years, Owji referred to an increase in investment, completion of semi-finished projects, and growth of oil, gas, refining, and petrochemical production, which the minister said have activated these industries and motivated contractors and will undoubtedly boost output and exports.
He says the average production in the South Pars field has increased by seven percent since the current government took over.
Launch of Phase 14, development of Phase 11, and installation of new pipeline of Phase 16 of the South Pars field will greatly help boost gas output, noted the minister.
Shifting to the collection of associated petroleum gas (APG), he stated all projects of gathering APG have been planned, and associated gases of all fields will be collected by the end of the incumbent administration’s term.
Owji pointed to the recently inaugurated NGL 3200 plant in southwestern Iran, saying the NGL 3100 plant will also become operational by mid-March 2024.
He also touched upon the domestic petrochemical industry, expressing his satisfaction with the progress and projects inaugurated in the sector.
In the refining sector, the minister continued, the country has made progress as gasoline output jumped 16 percent and 16 million liters of Euro-5 diesel fuel have been added to the output, and production of refineries’ feedstock has increased.
He added that the construction of two megaprojects named Shahid Soleimani and Makran also started and have made good physical progress.
Over the past two years, the Oil Ministry has promoted its cooperation with knowledge-based companies and universities, hiring 95 percent of university graduates, standing top in the productivity rankings, paying all gas debt to Turkmenistan, enforcing Article 10 of the Oil Law, and implementing the Oil Ministry’s plans on social responsibilities, he said.
The minister noted that Iran’s oil production did not exceed two million barrels per day (bpd) when the 13th (incumbent) administration took office.
The country’s current crude oil production capacity stands at 3.8m bpd, and the report of the National Iranian Oil Company (NIOC) shows that the country is producing 3.2 million barrels of oil a day, mentioned Owji, adding the figure will rise to 3.4m bpd by the end of summer.
He continued that brutal sanctions reduced Iran’s oil exports and revenues, and the government faced a hard currency deficit, which the Oil Ministry should make up according to the 2021 Budget Law.
The minister pointed to a vast energy imbalance, particularly in the gas sector during winter 2021, electricity blackouts in winter 2020, and sharply-reduced reserve capacity of power plants as other challenges his ministry faced.
He added that some 87 million barrels of gas condensates in storage offshore and Iran’s condensate funds frozen in South Korea [due to U.S. sanctions] were the other problems.
Now, Iran’s oil and gas condensate exports doubled as the country’s liquefied petroleum gas (LPG) exports in 2022, and oil and condensate exports in the first five months of the current Iranian calendar year (March 21-August 22, 2023) have witnessed 21 and 60 percent increases, respectively, and there is no offshore storage of condensate and not a single cent of the country’s revenues has been blocked, Owji said.
The low motivation of dissatisfied human resources, insufficient attention to the value chain development in most sectors, and refusal to use domestic companies, particularly knowledge-based firms, were also among the worrying issues the Oil Ministry encountered, underscored the minister.
We have not gas import from Russia
The oil minister has denied claims that gasoline is being imported from Russia, stating that refueling is carried out at all gas stations throughout the country.
Javad Owji denied the rumors about the increase in gasoline prices this morning after the cabinet's weekly meeting and stated: "Regarding gasoline, we announced last week that there will be no price increase and all refineries are working at full capacity."
"Our fuel reserves are 150 million liters," the minister added.
He said: "By September 22, crude oil production will reach 3.4 million barrels per day."
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