Oil Tops $103 a Barrel

chivalrousslateOil and Offshore

Nov 8, 2013 (7 years and 11 months ago)


Iran, Qatar Observe
Mutual Interests in
Gas Filed
irst Vice President Parviz
Davoudi said on Thursday
that Iran and Qatar will observe
bilateral interests in extracting
of the joint gas field.
Davoudi made the remark
after seeing off Qatari Prime
Minister Sheikh Hamad bin
Jassem al-Thani, adding that
the two countries have reached
consensus to exchange informa-
tion on the joint gas field in the
Persian Gulf.
The two sides have agreed to
implement the extraction opera-
tion in line with maintaining
mutual interests and avoiding
competitive and destructive
attitudes, he added.
Pointing to the holding of
two rounds of talks between
Iranian and Qatari senior offi-
cials during the visit, he noted
that a committee comprising of
two representatives from each
side will follow up on the nego-
tiations in a 60-day period.
Creation of South
Pars Development
Investment Fund
holam Hossien Nozari said
preliminaries for creation
of South Pars development
investment fund have begun.
The Minister of Oil said at
present time the preliminaries
for creation of south pars devel-
opment investment fund have
begun and we hope that the
government will follow up this
important project seriously.
“With the realization of this
goal, we can hope that the
private sectors (local and inter-
national) will invest broadly in
South Pars area. A framework
is necessary for creation of the
fund and private investment in
Asalooyeh Special Zone.”
He went on to say that for
the first time in the country,
all management, planning,
engineering and execution
affairs of the drilling operations
at South Pars phase 9 and 10
have been implemented by the
unremitting efforts of Iranian
Fajr Petrochemical
Stocks on Sale
he sales of the Fajr Petro-
chemical Co. cooperation
stocks have begun from yester-
day on a national scale.
Fajr Petrochemical Company
is one of the largest utility proj-
ects (Water, Electricity and Gas
Production) of the National
Petrochemical Industries
The PR of NPIC has stated
that the company has put its
stock on sale in order to attract
cooperation by the public in pet-
rochemical projects and create
suitable conditions for assured
and profitable investment.
The Fajr Petrochemical Co.
cooperation stocks sales will
continue until March 6, 2008
in specified Tejarat Bank
The interest rate on the stock
offered is 15.5% but the project
has realistic interest returns of
16-17.5% which is paid out on
a daily basis.
Iran Plans to Invest in
Zimbabwe Oil
ranian Ambassador to Zim-
babwe, Rasoul Momeni said
the country planned to invest
in the Feruka Oil Refinery to
bring it back on stream, after
decades of laying idle.
In an interview, he said three
Iranian technical teams had
evaluated the plant, and sub-
mitted their findings to the
Government. He said the two
governments were currently
negotiating legal and other
issues before Iran invests in the
oil processing facility, which
is in the eastern city of Mutare
and is connected by pipeline
to the Mozambican port city
of Beira from where most of
Zimbabwe’s fuel supplies are
pumped through.
Iran Gas Production to Rise
in Near Future
ollowing the completion of full repairs to the 18 inch gas
pipeline of the phase 1 of South Pars field in the coming days,
production rate of the country will surpass 480 million cubic
meters of natural gas per day, said the first deputy head of the
National Iranian Oil Company, Mohammad Javad Asemipour .
According to him, the rate of gas injection into wells has climbed
to 3 m cmpd this year compared to the year before.
he price of OPEC basket of twelve crudes
went down slightly from its 95.20-dollar
all-time high on Thursday February 28, and
stood at $94.99 a barrel (159 liters), accord-
ing to OPEC Secretariat calculations. The
daily price of OPEC basket settled at $94.09
a barrel on Tuesday, Feb. 26.
The OPEC daily oil price hit the record
high of $94.09 a barrel on Wednesday, Feb.
27. OPEC calculates an average basket price
based on twelve important brands produced
by cartel members.
Experts pointed out that some factors like
warmer weather in the northern hemisphere
and the slowing down of the world”s eco-
nomic growth would lead to a decline in the
demand for crude oil, which would make
OPEC decide to cut its oil output at the next
ministerial conference in order to maintain
the price level. Opec will hold a regular
meeting on March 5.
Japan urged OPEC, which supplies about
40 per cent of the world”s crude, to increase
The new OPEC Reference Basket (ORB),
implemented as of 10 September 2007, is cur-
rently made up of Saharan Blend (Algeria),
Girassol (Angola), Minas (Indonesia), Iran
Heavy (Islamic Republic of Iran), Basra Light
(Iraq), Kuwait Export (Kuwait), Es Sider
(Libya), Bonny Light (Nigeria), Qatar Marine
(Qatar), Arab Light (Saudi Arabia), Murban
(UAE) and BCF 17 (Venezuela).
OPEC Price Inches down from Record High
oward supporting scien-
tific research and achiev-
ing technology development in
the industry, an oil technology
theme park is to establish, said
an official.
Vice president of the Oil Min-
ister in Human Resources Devel-
opment and Management, Dr.
Mansour Moazemi announced
the ministry has made the neces-
sary preparations for establishing
the theme park.
He asserted “the ministry
emphasizes on expanding sci-
entific research in all related oil
industry fields. At present more
than 3500 scholars and research-
ers have technical cooperation
with the oil industry.”
“Concerning budget specified
to research, Rls61 bn ($6.5 m)
has been expended on various
oil research projects in first 11
months of the current year,” he
added. “The figure shows a con-
siderable increase comparing to
the previous year budget and this
is of great importance.”
“Considering the great leader
and the state supports, all min-
istries research budget has been
climbed for about 1% of GDP
and the authorities are in charge
of making the way for the current
facilities to be used proportion-
ately.” He asserted research
managers are to strengthen the
field unanimously.
Cooperating with universi-
ties to do research projects, oil
industry should support uni-
versities” initiating research
projects in various sections of
the industry he stated.
“Article 44 of the Constitution
is the beginning of a new season
in this industry management so
it should be of great concern to
supreme managers of the indus-
try. Country”s oil industry is
in real need of making use of
domestic potentials and inter-
national interactions.”
Dr. Mansour Moazemi indi-
cated according to the country”s
20-year perspective plan, $501
bn ($53.6 mm) will be invested
in oil industry in next 20 years.
As oil industry is composed of
different parts, not to expend on
research projects it is not pos-
sible to realize the objectives in
this industry.
Oil Technology Theme Park Takes Shape
il prices briefly surpassed
$103 a barrel for the first
time Friday as persistent weak-
ness in the U.S. dollar and the
prospect of lower interest rates
attracted fresh money to the oil
Light, sweet crude for April
delivery on the New York Mer-
cantile Exchange jumped to a
new trading record of $103.05
a barrel in electronic trading
before slipping back to $102.07
a barrel, down 52 cents, by
midday in Europe. On Thurs-
day, the contract jumped $2.95
to a record settlement price of
$102.59 a barrel.
Prices were supported by
comments Thursday from US
Federal Reserve Chairman Ben
Bernanke, who said the Ameri-
can economy is not immediately
threatened with stagflation, a
combination of economic weak-
ness and rising inflation.
Investors chose to see the com-
ments as confirmation of their
beliefs that the Fed will continue
cutting interest rates to try to
shore up the economy.
“It seems that further inter-
est rate cuts, additional dollar
weakness and more investment
buying will anchor oil to higher
prices,” energy risk manage-
ment firm Cameron Hanover
said in its daily report. “It can”t
go on forever, but it looks like
it can go on for a while.”
Lower U.S. interest rates tend
to weaken the dollar, and crude
futures offer a hedge against a
falling dollar. “Due to the weak-
ening dollar and the rising fear
of inflation, investors have put
money into commodities, oil
included,” said Victor Shum,
an energy analyst with Purvin
& Gertz in Singapore. “Com-
modities, as tangible assets, do
not face as much inflationary
threat as opposed to holding a
currency,” Shum said. “Even
though the value of money is
changing, the asset continues to
have an intrinsic value.”
In London, Brent crude futures
fell 85 cents to $100.05 a barrel
on the ICE Futures exchange.
Shum warned that a price
bubble may be emerging in the
crude futures market as investors
ignored market fundamentals
that have shown continuous
increases in U.S. crude supply
while several recent forecasters
have lowered oil demand growth
predictions for this year due to
the slowing economy.
“We’ve seen seven straight
weeks of builds in crude oil
inventories. The oil market fun-
damentals are softening and yet
we see record highs being set,
day in and day out,” Shum said.
Shum warned of the possibility
of a sharp correction at some
point, though unlikely in the
near term. “Right now, there’s a
lot of trading based on emotion -
emotions are high and that could
keep crude oil at elevated levels,
but the market faces the risk of
a price collapse.”
The Japanese government on
Friday urged the oil cartel OPEC
to increase output to help ease
record prices. “The high crude
prices are gradually damaging
the global economy. This will
damage the economies of oil-
producing countries,” Minister
of Economy, Trade and Industry
Akira Amari said.
The Organization of Petro-
leum Exporting Countries
holds its next policy meeting
on March 5. It is likely to decide
to keep current production
levels unchanged, or even
cut production, according to
reported comments by OPEC
President Chakib Khelil.
Khelil noted that the recent
rally in oil prices has been driven
by the U.S. dollar’s weakness
and speculative trades amid
geopolitical risks. “The min-
isters may not be able to find
any reason to cut production
now, especially if oil prices keep
rising. If they cannot, they will
plan another meeting in five
weeks and will cut output at
the first hurdle.”
Crude prices are within the
range of inflation-adjusted highs
set in early 1980. A $38 barrel of
oil then would be worth $97 to
$104 or more today, depending
on the how the adjustment is
calculated. A direct comparison
with daily Nymex prices is dif-
ficult because historical data,
gathered before the crude futures
contract was created in 1983, are
based on average monthly prices
posted by oil producers.
In other Nymex trading,
heating oil retreated 1.30 cents
to $2.8326 a gallon while gaso-
line futures fell 1.17 cents to
$2.4840 a gallon. Natural gas
futures slipped 7 cents to $9.373
per 1,000 cubic feet.
Light, sweet crude for April delivery on the New York Mercantile Exchange jumped to a new trading record of $103.05 a barrel in electronic trading.
Oil Tops $103 a Barrel
Due to the Weakening Dollar and the Rising Fear of Inflation,
Investors Have Put Money into Commodities like Oil
Countdown to OEOC 6 Projects
Inauguration Abroad
il Exploration Operations
Company Managing
Director Hassan Mohammadi-
Moghaddam said the count-
down to the completion of 6
upstream projects of OEOC
in Uzbekistan started.
The official, who made the statement in his talks with
SHANA on the sidelines of “The Third Conference on
Technological Development in Oil industry,” added
the discovery of crude in Uzbekistan fields worth $50
million, would be completed by mid March and OEOC
has participated in the development of the fields for
Malaysia’s Petronas and Russia”s Lukoil.
“OEOC has been awarded the contract worth a
total $50 million,” he continued.
“The company now has expertise in the discovery
of crude oil including the state-of-the-art technol-
ogy over two and three dimensional seismographic
Count Down
No. 386, New Edition
March 2 , 2008
The Weekly Publication of the Iranian Petroleum Industry
Karoon Oil Co. Gas Condensates
Surpasses 18m Barrels
aroun Oil and Gas Explo-
ration Company produced
over 18 million barrels of gas
condensates within the first 9
months of the year, an official
told SHANA.
The head of the company for
Gas and Liquid Gas office, Mohsen Naghavi-Poor, said
this rate has been produced by the company”s three
gas and liquid gas (NGL) plants and refinery.
“The company provides Imam Khomeini port”s
petrochemical plant with a great deal of this output,”
he continued, “adding total volume of NGL produc-
tion has touched 62000 barrels per day.”
“The company would produce 640 million cf of
light gas per day.”
Producing more than one million bpd of crude,
Karoun oil Co. as the largest exploitation company,
works under the National Iranian South Oil Company”s
(NISOC) supervision
Specific Portable Pneumatic Hydro
Drill Made in Iran
ranian experts succeeded to
design and make a specific
portable pneumatic hydro drill
for excavating semi-deep oil
Making the first portable
pneumatic hydro drill - well-
equipped machine for oil exploration project -, Oil
Exploration Company cooperated with AMIMCO
(Machin Sanat-e-Mehr-e-Alborz). The machine was
made within the country completely and passing
through a variety of tests taken by Oil Exploration
Company, it was approved on Dec. 4, 2007.
Long life cycle, fuel efficiency, enjoying 3 linear
velocities, high efficiency, able to save pneumatic
potentials, the least rate of energy waste and easy
to assemble ( in ess than 3 minutes) are some of
its merits.
Comparing to the similar foreign products, this
drill has some commendable merits.
It is possible
Exploratory Excavation of Caspian
Sea Began by Iran
The Iran-Alborz semi-sub-
mersible drilling platform has
begun formal drilling opera-
tions in block 6 of the Caspian
Sea which is to be utilized in
the near future.
The inauguration ceremony of the platform begun
on block 6 as priority number one and will continue
to block 29 for discovery operations in the Caspian
Sea. The first exploratory well will be at a depth
of 700 meters. The agreement for exploration of
the blocks mentioned was issued last year by the
Ministry of Oil.
The Platform could drill excavation operations
from 1030 meters up to a depth of 6000 meter in
the seabed. The platform has a weight of 14,000
tones and consists of deck, two floating pontoons,
eight anchors for excavation purposes as well as top
drive, mud pump and draw works. It also supports a
workforce of 120 engineers and technicians.
The construction of the semi-floating platform was
through an international tender in 2001 composed
of a consortium by Sadra Company (90 percent) and
Sweden’s AVG (less than 10 percent).