Dr. Seyed Hamid Hosseini – Head of the Petroleum Conference-Iran 2017: The Oil and Gas sector has historically been the key driver of Iran’s economy. At this time, in order to jump start the economy, we need to utilise the high potential this sector can offer. We believe that by removing long existing barriers, an injection of both national and international investments will allow the oil and gas sector to return to the traditional driving force it enjoyed and also assist other sectors of the Iranian economy.
The development of upstream and downstream sectors is only possible if national and international capacities are applied. Fortunately, the Joint Comprehensive Plan of Action (JCPA) has provided a platform for cooperation with all parties and as a result, we are confident this will enable the Iranian economy to grow.
However, 85 billion barrels out of 157 billion barrels of producible oil is situated in joint oil fields as well as 14 billion cubic meters out of 32 trillion cubic meters of producible gas is also located in joint gas fields. As a result, billions of dollars’ of Iran oil and gas revenue is being syphoned off by neighbouring countries.
The global oil refinery capacity is approximately one hundred million barrels per day, of which Iran’s share is 1.8million barrels, which is only 1.8 percent of the total global production. However, by 2025 this capacity should increase by 5 million barrels per day.
Furthermore, Iran’s annual production capacity of the petrochemical sector is 62 million tones, and they have an annual revenue of $20b dollars from the domestic and international markets. Currently, Iran’s share of $3,700b dollars of the petrochemical product market is less than 1% of the global share. And finally, based on future projections, the value of Iran’s revenue will rise to $75b dollars.
The contracting capability of Iran is estimated to be around $100 billion dollars annually, and more than 50% of it has remained unused. The share of manufacturing components, equipments and facilities in the petrochemical industry is estimated to be around $30 billion dollars.
Currently, a strong and independent regulatory body and a modern system of financing is highly essential to support all part of the supply chain from long term contracts, secure feeds, taxation, particularly value added tax issues.
During the past three months, the Petroleum Conference-Iran 2016 office have had very productive discussions with officials of Competition Committee, Iran National Development Fund, Export Guarantee Fund, Export Development Bank and Energy Commission of Iran Parliament.
By addressing these issues, Iranian industries will be able to boost its cooperation with international investors and counterparts. For this reason, The Petroleum Conference – Iran 2017 will be an indispensable platform for the Iran private sector to established partnership and tie their cooperation global experts.
The Petroleum Conference – Iran 2017, is the follow up of the Iranian oil and gas associations’ initiative to form a ‘United Voice’ of Iran’s petroleum private sector, as convened at the 1st October Petroleum Conference – Iran 2016.
The 2017 conference will be attended by Iran’s Head of Parliament, H.E. Dr. Ali Larijani, Minister of Petroleum H.E Mr. Bijan Zanganeh, and Deputy President in Science & Technology Dr. Sorena Sattari, who have been invited to speak on current economic trends, and Iran’s petroleum investment opportunities.
Petroleum Conference – Iran, is a permanent office in charge of International relationship of Iran’s petroleum industry’s private sector, in order to enhance and facilitate the Partnership, Investment and cooperation between Iran private sector and International organisations.
On May 2016, for the first time in the history of Iran Petroleum industry, all the major petroleum, oil & gas industry associations and unions with more than 1500 member companies with about $40 billion in revenue, assembled as the ‘United Voice’ of Iran petroleum private sector, focusing in midstream and downstream.
The member associations in Iran are:
- ICCIM (Iran Chamber of Commerce, Industries and Mines)
- APEC (The Association of petroleum industry engineering and construction companies) with 220 member companies
- APIC (Association Petrochemical Industry Corporation) with 64 member companies
- ECCA – OPI (Engineering and Construction Companies Association) with 13 member companies
- ICCA (International Consultants and Contractors Association of Iran), with 260 member companies
- OPEX (Iranian oil, gas and petrochemical products exporters’ union), with 292 member companies
- SATSA (Iran Industrial Equipment Manufacturers Association), with 160 member companies
- I.P.I.E.M (Society of Iranian Petroleum Industry Equipment Manufacturers), with 450 member companies