Iranian crude revenues surge with new customers, refineries

IRANIAN CRUDE REVENUES SURGE WITH NEW CUSTOMERS, REFINERIES

Iranian crude revenues surge with new customers, refineries

After making new oil customers, Iran has reported a significant increase in crude income despite US sanctions.

Speaking on Government TV on Monday night, Minister of Oil Javad Owji said Iran also used Barter trade as a way to avoid US sanctions to sell its crude oil.

TEHRAN

The sanctions imposed by Washington have prevented them from selling their energy products, but Tehran has found ways to move through the sanctions.

Owji said that any oil that the country has sold in the last year, has received the money without delay, adding that the demands in the gasoline sector have also been fulfilled.

He mentioned the discovery and use of refineries offshore as one of the achievements of the titular government led by Ebrahim Raisi, which took over last year.

Last year, Owji said the focus was increasingly on gas condensate production and oil marketing, added that the new market had been found in Latin America, Asia, and Europe.

He said Iran is ready to alleviate the global energy crisis by providing oil to Europe.

“We have a good capacity in oil and gas production, which can redeem part of world energy deficiencies,” he said, referring to the crisis in the global energy market caused by the Ukraine War.

He associated an increase in oil sales with clearing oil products, offshore refinery identification, and oil exchange with items such as medicines and seeds.

Nearly 70-80% of sales, he added, were paid in foreign currencies.

CHALLENGES

Referring to the South Fars field, which represents 70% of Iran’s gas feeding and 8% of global gas reserves, Owji said he reached the production record of 705 million cubic meters this year.

He said the total revenue from gas exports in 2019 was $ 1 billion, which reached $ 4 billion in the last Iranian calendar year, including $ 1.5 billion in circulating claims.

Owji warned that if the country does not develop refineries, it will become an energy importer while listing challenges such as financing and the technical capacity of employees.

He also requested investments in the oil industry of Iran, saying that they would be agreements of “low risk and high value.”

Owji said US sanctions only include crude and gas condensates, not petrochemical products because the world needs them and at the same time they are difficult to identify.

He said that the country had sold $ 12.5 billion worth of petrochemical products in world markets, calling for the construction of advantageous petro-refineries.

In the challenges faced by the ministry for the past year, Owji referred to cyber-attacks on the gas network in October, which caused broad interference in gasoline stations throughout Iran.

Software targeted by attacks that support the payment of smart cards for subsidized fuel.

Meanwhile, the Ministry of Oil’s website quoted a senior ministry official who said on Monday that the National Iran Oil Company (NIOC) plans to increase state oil production to 4,038 million barrels per day (BPD) in the current Iranian calendar year.

To achieve this objective, the official said that drilling platforms, central tubes, and equipment necessary to pierce new wells and the repair and restoration of existing wells are all important.

In April, Owji said that Iran’s crude oil production had reached the pre-sanction level.

“Thanks to the efforts of all those active in this sector, we hope to reach higher figures in crude oil exports, gas condensate, petroleum products, and petrochemicals,” he said.

Iranian crude revenues surge with new customers, refineries