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Iran to invest 70 billion dollars in oil, gas sectors in 4th plan

Tehran, Dec 5, IRNA -- Deputy Oil Minister Akbar Torkan said in Tehran on Sunday that dlrs 70 billion will be invested in the oil and gas sectors in the fourth five-year economic development plan (2005-10).

Torkan told the National Seminar on Attraction of Foreign Investment that dlrs 44 billion would be invested in upstream industries, dlrs 12 billion in the petrochemical sector and dlrs 10 billion in the refining sector.

He said dlrs 16.6 billion out of the sum would be provided from domestic sources, while dlrs 25 billion investment would be on buy-back scheme and dlrs 28 billion in finance form.

He added that private sector would directly undertake 50 percent of investment in petrochemical development projects, while the remaining 50 percent investment would be in partnership with the private sector, and the Petrochemical company and through issuance of participation bonds.

Elsewhere in his speech, Torkan said in the next 20 years the focal point of global oil and gas consumption would shift to southeast Asia from northern America.

He said should the ongoing process of oil production and recovery continue worldwide, the US would possess oil for 11 years, while the Persian Gulf would have energy reserves for 100 years.

The world's total oil reserves is 1,050 billion barrels of which 700 billion barrels (70 percent) is owned by five countries, including Iran, Saudi Arabia, Iraq, the UAE and Kuwait, said Torkan.

He said Iran also has a share of 17 percent or 17,000 billion cubic meters in the world's gas reserves.

Despite having the world's second largest gas reserves, Iran is the fourth major gas supplier with 122 billion cubic meters of production.

He said four million barrels of oil are produced daily in Iran, aiming investment for a targeted 5,400,000 bpd production.

Iran has lost five percent of its share in global oil production and unless further investment is made in the sector, the country is feared to lose 200,000 barrels of the share in world crude production, he added.

Putting Iran's in situ oil deposit at 500 billion barrels, Torkan said not all of the amount is recoverable and only 26 percent of the portion can be exploited by using modern technology.

He said the government plans to raise its daily gas production to 900 million cubic meters from 400 million cubic meters.

He added that the country should meet the target in the next 10 years by proper exploitation of South Pars gas field.

The official said Iran also plans to raise its downstream production to 2,600,000 barrels from 1,600,000 barrels.

He concluded that Iran is expected to produced dlrs 20 billion worth of petrochemical products in the next 10 years.

... Payvand News - 12/5/04 ... --

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