Interview with CEO of National Iranian Oil Company

The annual oil revenue is about $ 9-10 billion, of which $ 2-2.5 billion is spent on wages and salaries in the government, and $ 2-3 billion on maintenance costs.

 

• How many IPC contracts do you think will be signed in the next 5 months?

It is expected that 4 or 5 fields such as Ab-Teymour, Mansouri, Chengouleh, Azadegan, etc., which have the updated technical information, can be signed in IPC contracts. Other fields like Band-E-Karkheh and Dehloran have are currently under technical studies and we hope they become finalized as soon as possible. Since Total is responsible for the development of the Shahin field in Qatar, the MOP prefers to implement the development project of South Pars oil layer by another company.

•  Do you think that we may have the same problem with CNPC and Gazprom, considering the presence of CNPC in Majnoon (a common field with Azadegan) and Gazprom in Badra (a common field with Azar)?

In fact, this point is of less value, considering the different type of contracts between these companies and the mentioned clients. Also Iranian experts emphasize that at most only 3% immigration of the oil may occur regarding the water injection process.

•  How do you assess the impact of the US President’s recent speech on IPC contracts?

Since European countries clearly tend to continue the JCPOA, we expect that it has not considerable impact on IPC contracts.

• How do you assess the implementation trend of the Total Contract in South Pars field?

Total’s performance is very clear. Total’s expenditure is expected to be 70 million dollars in 2017 for project implementation in the document preparation, contracts and etc. It is expected to have the investment of around $ 660 million in 2018. However, a limit has been considered for minimum investment in our contract with Total and it is possible to cancel the contract in case of non-compliance by the international party.

• What has been planned in terms of financing for the local companies, especially Petropars in Phase 11?

Petropars is supported by NICO and its investors in the market. Consultations have been held with the National Development Fund in order to support other companies in attending the IPC tenders.

•  Will the process of financing or the local companies be restored to the traditional way?

The new contracts have considered several solutions; however, private companies should not depend totally on the National Development Fund for their finance budget.

•  How do you assess the financial and budget status of the National Iranian Oil Company?

The annual oil revenue is about $ 9-10 billion, of which $ 2-2.5 billion is spent on wages and salaries in the govern
Kardor Says: With IPC Contracts and EOR Projects Up to 6 mbpd Production Can Be Accessed
Ali Kardor, as the CEO of National Iranian Oil Company which is one of the greatest national oil companies in the world and always attempts to develop Iranian petroleum industry in conjunction with the majors and the potential of Iranian companies. Drilling magazine has conducted an exclusive interview with him that is presented in the following.
ment, and $ 2-3 billion on maintenance costs. On the other hand, the Ministry of Petroleum’s debt is currently about $ 53 billion. We propose to have 10% of the National Development Fund, which will be paid to the MOP for a while, that is actually the best way. However, we may face problems to approve it in our parliament. The NIOC tends this percentage to be paid to the creditor banks on behalf of the MOP, and they should be dictated to spend this money for the development of the country’s industries (oil and etc.), which in fact will be very helpful financially to the Oil Ministry.

•  What are the NIOC’s plans to publish financial statements and its digits?

For the first time, I did this when I was the financial deputy of NIOC. It was continued for several years, and the annual report was released, which was stopped due to sanctions and confidentiality of some information after a while.

 

You can follow this interview at pages 32-33 /#8 of DRILLING magazine Free distributing  now in ADIPEC 2017 -stand 12992,Hall12

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