Ministry of Petroleum of Iran
Encyclopedia
The Ministry of Petroleum (MoP) manages the oil industry
, the producer of oil and petrochemical products. MoP is in charge of all issues pertaining to exploration, extraction, exploitation, distribution and exportation of crude oil and oil products. In addition, according to the "Imports and Exports Regulation Act", issuing import licenses for such products is also among the functions of the Ministry of Petroleum. According to BP, Iran's has 137.6 Goilbbl of proven oil reserves
and 29.61 trillion cubic meters of proven gas reserves
. Iran ranks third in the world in oil reserves and second in gas reserves.
According to the Fourth Economic, Social and Cultural Development Plan, the Government has been required to transfer at least 10% of the activities related to the exploration, extraction and production of crude oil to the private sector, while in the meantime retaining its ownership of oil resources. This is also the case in other fields of the Ministry of Petroleum's activities.
Iran plans to invest $500 billion in the oil sector until 2025. As of 2010, $70 billion worth of oil and gas projects are under construction. Iran's annual oil and gas revenues will reach $250 billion by 2015.
or direct equity
stake. However, the 1987 Petroleum Law permits the establishment of contracts between the Ministry of Petroleum, state companies and "local and foreign national persons and legal entities." Buyback contracts
, for instance, are arrangements in which the contractor funds all investments, receives remuneration from the National Iranian Oil Company
(NIOC) in the form of an allocated production share, then transfers operation of the field to NIOC after a set number of years, at which time the contract is completed.
Since the 1979 revolution in Iran, the country has been under constant US unilateral sanctions. The first U.S. sanctions against Iran were formalized in November 1979, and during the hostage crisis
, many sanctions were leveled against the Iranian government. By 1987 the import of Iranian goods into the United States
had been banned. In 1995, President of the United States
Bill Clinton
issued Executive Order 12957, banning U.S. investment in Iran's energy sector, followed a few weeks later by Executive Order 12959 eliminating all trade and investment and virtually all interaction between the United States
and Iran
.
National Iranian Tanker Company
(NITC), a subsidiary of NIOC, controls the second largest fleet of tankers in OPEC
.
Iranian Offshore Engineering and Construction Company
(IOEC) is also an important subsidiary of NIOC. It is a joint-venture between NIOC and IDRO
.
(NIGC) manages gathering, treatment, processing, transmission, distribution, and exports of gas and gas liquids.
The huge reserves of natural gas
put Iran in the second place, in terms of the natural gas reserve quantity, among other countries, only next to the Russian Federation, with an estimate of proven reserve quantity close to 23 bcm. Iran's gas reserves are exploited primarily for domestic use.
(NPC) handles petrochemical production, distribution, and exports. National Iranian Petrochemical Company's output capacity will increase to over 100 million tpa by 2015 from an estimated 50 million tpa in 2010 thus becoming the world' second largest chemical producer globally after Dow Chemical with Iran housing some of the world's largest chemical complexes.
(NIORDC) handles oil refining and transportation, with some overlap to NIOC.
There are eight refineries with a potential capacity of 950000 oilbbl/d and one refinery complex in the country with a total refining capacity of over 15 koilbbl/d (in Tehran
, Tabriz
, Isfahan, Abadan, Kermanshah
, Shiraz
, Bandar Abbas
, Arak
and Lavan Island
) and a storage capacity of 8 milliard litre. Abundance of basic material, like natural gas, in the country provide favorable conditions for development and expansion of petrochemical plants.
, Iran’s average daily production of crude oil stood at 4 Moilbbl per day. Of this amount, 55% was exported and the remainder was consumed domestically. As of 2010, oil income accounts for 80% of Iran's foreign currency revenues and 60% of the nation's overall budget.
Iran exported over 844 Moilbbl of oil in the one year to March 21, 2010, averaging around 2.3 Moilbbl a day. The exports included around 259 Moilbbl of light crude and more than 473 Moilbbl of heavy crude oil. Japan, China, South Africa, Brazil, Pakistan, Sri Lanka, Spain, India and the Netherlands are the main importers of Iran's crude oil. Iran's annual oil and gas revenues are expected to reach $250 billion by 2015.
Petroleum industry in Iran
In 2004 Iran produced 5.1 percent of the world’s total crude oil , which generated revenues of US$25 billion to US$30 billion and was the country’s primary source of foreign currency. At 2006 levels of production, oil proceeds represented about 18.7 percent of gross domestic product . However, the...
, the producer of oil and petrochemical products. MoP is in charge of all issues pertaining to exploration, extraction, exploitation, distribution and exportation of crude oil and oil products. In addition, according to the "Imports and Exports Regulation Act", issuing import licenses for such products is also among the functions of the Ministry of Petroleum. According to BP, Iran's has 137.6 Goilbbl of proven oil reserves
Oil reserves in Iran
Oil reserves in Iran, according to its government, rank third largest in the world at approximately as of 2007, although it ranks second if Canadian reserves of unconventional oil are excluded. This is roughly 10% of the world's total proven petroleum reserves. Iran is the world's fourth largest...
and 29.61 trillion cubic meters of proven gas reserves
Natural gas reserves in Iran
According to Iran Petroleum Ministry, Iran's proved natural gas reserves are about or about 15.8% of world's total reserves, of which 33% are as associated gas and 67% is in non associated gas fields...
. Iran ranks third in the world in oil reserves and second in gas reserves.
According to the Fourth Economic, Social and Cultural Development Plan, the Government has been required to transfer at least 10% of the activities related to the exploration, extraction and production of crude oil to the private sector, while in the meantime retaining its ownership of oil resources. This is also the case in other fields of the Ministry of Petroleum's activities.
Iran plans to invest $500 billion in the oil sector until 2025. As of 2010, $70 billion worth of oil and gas projects are under construction. Iran's annual oil and gas revenues will reach $250 billion by 2015.
Constitution
The Iranian constitution prohibits the granting of petroleum rights on a concessionary basisConcession (contract)
A concession is a business operated under a contract or license associated with a degree of exclusivity in business within a certain geographical area. For example, sports arenas or public parks may have concession stands. Many department stores contain numerous concessions operated by other...
or direct equity
Equity (finance)
In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets, after all liabilities are paid. If liability exceeds assets, negative equity exists...
stake. However, the 1987 Petroleum Law permits the establishment of contracts between the Ministry of Petroleum, state companies and "local and foreign national persons and legal entities." Buyback contracts
Buyback
Buyback may refer to:*Buyback, the act of rebuying something that one previously sold, as with a lemon *Share repurchase, also called stock repurchase or share buyback, the repurchase of stock by the company that issued it-See also:...
, for instance, are arrangements in which the contractor funds all investments, receives remuneration from the National Iranian Oil Company
National Iranian Oil Company
The National Iranian Oil Company , a government-owned corporation under the direction of the Ministry of Petroleum of Iran, is an oil and natural gas producer and distributor headquartered in Tehran. It was established in 1948...
(NIOC) in the form of an allocated production share, then transfers operation of the field to NIOC after a set number of years, at which time the contract is completed.
Since the 1979 revolution in Iran, the country has been under constant US unilateral sanctions. The first U.S. sanctions against Iran were formalized in November 1979, and during the hostage crisis
Iran hostage crisis
The Iran hostage crisis was a diplomatic crisis between Iran and the United States where 52 Americans were held hostage for 444 days from November 4, 1979 to January 20, 1981, after a group of Islamist students and militants took over the American Embassy in Tehran in support of the Iranian...
, many sanctions were leveled against the Iranian government. By 1987 the import of Iranian goods into the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
had been banned. In 1995, President of the United States
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
issued Executive Order 12957, banning U.S. investment in Iran's energy sector, followed a few weeks later by Executive Order 12959 eliminating all trade and investment and virtually all interaction between the United States
United States-Iran relations
Political relations between Iran and the United States began in the mid-to-late 19th century. Initially, while Iran was very wary of British and Russian colonial interests during the Great Game, the United States was seen as a more trustworthy Western power, and the Americans Arthur Millspaugh and...
and Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
.
National Iranian Oil Company (NIOC)
NIOC is in charge of oil and gas exploration and production, refining and oil transportation.National Iranian Tanker Company
National Iranian Tanker Company
National Iranian Tanker Company is a subsidiary of the National Iranian Oil Company which was privatized in 2009. As at 2011, NITC was owned by funds managing pensions for 5 million Iranians. It is the biggest tanker company in the Middle East and 4th in the world...
(NITC), a subsidiary of NIOC, controls the second largest fleet of tankers in OPEC
OPEC
OPEC is an intergovernmental organization of twelve developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings...
.
Iranian Offshore Engineering and Construction Company
Iranian Offshore Engineering and Construction Company
Iranian Offshore Engineering and Construction Company is the first Iranian general contractor to the oil and gas industries. IOEC specializes in offshore engineering, procurement, construction, pipe coating, pipelaying, and installation of jackets, top sides, etc...
(IOEC) is also an important subsidiary of NIOC. It is a joint-venture between NIOC and IDRO
IDRO
Industrial Development and Renovation Organization of Iran was established in 1967 in Iran. IDRO Group is one of the largest companies in Iran, it's also on of the largest conglomerates in Asia. IDRO's objective is to develop Iran's industry sector and to accelerate the industrialization process...
.
National Iranian Gas Company
National Iranian Gas CompanyNational Iranian Gas Company
The National Iranian Gas Company was established in 1965 as one of the four principal companies affiliated to the Ministry of Petroleum of the Islamic Republic of Iran with 25,000 million Rials initial capital....
(NIGC) manages gathering, treatment, processing, transmission, distribution, and exports of gas and gas liquids.
The huge reserves of natural gas
Natural gas reserves in Iran
According to Iran Petroleum Ministry, Iran's proved natural gas reserves are about or about 15.8% of world's total reserves, of which 33% are as associated gas and 67% is in non associated gas fields...
put Iran in the second place, in terms of the natural gas reserve quantity, among other countries, only next to the Russian Federation, with an estimate of proven reserve quantity close to 23 bcm. Iran's gas reserves are exploited primarily for domestic use.
National Iranian Petrochemical Company
National Iranian Petrochemical CompanyNational Iranian Petrochemical Company
The National Iranian Petrochemical Company , a subsidiary to the Iranian Petroleum Ministry, is owned by the government of the Islamic Republic of Iran. It is responsible for the development and operation of the country's petrochemical sector. Founded in 1964, NIPC began its activities by operating...
(NPC) handles petrochemical production, distribution, and exports. National Iranian Petrochemical Company's output capacity will increase to over 100 million tpa by 2015 from an estimated 50 million tpa in 2010 thus becoming the world' second largest chemical producer globally after Dow Chemical with Iran housing some of the world's largest chemical complexes.
National Iranian Oil Refining and Distribution Company
National Iranian Oil Refining and Distribution CompanyNational Iranian Oil Refining and Distribution Company
National Iranian Oil Refining and Distribution Company is part of the Ministry of Petroleum of Iran. NIORDC was established on March 8, 1992 and undertook to perform all operations relating to refining and distribution of oil products....
(NIORDC) handles oil refining and transportation, with some overlap to NIOC.
There are eight refineries with a potential capacity of 950000 oilbbl/d and one refinery complex in the country with a total refining capacity of over 15 koilbbl/d (in Tehran
Tehran
Tehran , sometimes spelled Teheran, is the capital of Iran and Tehran Province. With an estimated population of 8,429,807; it is also Iran's largest urban area and city, one of the largest cities in Western Asia, and is the world's 19th largest city.In the 20th century, Tehran was subject to...
, Tabriz
Tabriz
Tabriz is the fourth largest city and one of the historical capitals of Iran and the capital of East Azerbaijan Province. Situated at an altitude of 1,350 meters at the junction of the Quri River and Aji River, it was the second largest city in Iran until the late 1960s, one of its former...
, Isfahan, Abadan, Kermanshah
Kermanshah
Kermanshah is a city in and the capital of Kermanshah Province, Iran. At the 2006 census, its population was 784,602, in 198,117 families.The overwhelming majority of Kermanshahi people are Shi'a Muslims...
, Shiraz
Shiraz
Shiraz may refer to:* Shiraz, Iran, a city in Iran* Shiraz County, an administrative subdivision of Iran* Vosketap, Armenia, formerly called ShirazPeople:* Hovhannes Shiraz, Armenian poet* Ara Shiraz, Armenian sculptor...
, Bandar Abbas
Bandar Abbas
Bandar-Abbas or Bandar-e ‘Abbās , also Romanized as Bandar ‘Abbās, Bandar ‘Abbāsī, and Bandar-e ‘Abbās; formerly known as Cambarão and Port Comorão to Portuguese traders, as Gombroon to English traders and as Gamrun or Gumrun to Dutch merchants) is a port city and capital of Hormozgān Province on...
, Arak
Arak, Iran
-Industries:thumb|right|250px|wagon parsArak is one of the main industrial cities of Iran, possessing many plants for heavy industries especially for the metal and machinery industries, including:...
and Lavan Island
Lavan Island
Lavan Island is an Iranian island in the Persian Gulf. It has an area of 76 km². The island has one of the four major terminals for export of crude oil in Iran. The largest one is in Kharg Island.-See also:*Kookherd*Bastak*Bandar Lengeh...
) and a storage capacity of 8 milliard litre. Abundance of basic material, like natural gas, in the country provide favorable conditions for development and expansion of petrochemical plants.
Revenues from crude oil
Iran’s total revenues from the sale of oil amounted to $77 billion in Iranian year 1387 (2008–09). The average sale price of Iran’s crude oil during that year was $100 per barrel. According to the National Iranian Oil CompanyNational Iranian Oil Company
The National Iranian Oil Company , a government-owned corporation under the direction of the Ministry of Petroleum of Iran, is an oil and natural gas producer and distributor headquartered in Tehran. It was established in 1948...
, Iran’s average daily production of crude oil stood at 4 Moilbbl per day. Of this amount, 55% was exported and the remainder was consumed domestically. As of 2010, oil income accounts for 80% of Iran's foreign currency revenues and 60% of the nation's overall budget.
Iran exported over 844 Moilbbl of oil in the one year to March 21, 2010, averaging around 2.3 Moilbbl a day. The exports included around 259 Moilbbl of light crude and more than 473 Moilbbl of heavy crude oil. Japan, China, South Africa, Brazil, Pakistan, Sri Lanka, Spain, India and the Netherlands are the main importers of Iran's crude oil. Iran's annual oil and gas revenues are expected to reach $250 billion by 2015.
Reserves and production
| Country | Billions of Barrels |
|---|---|
| Saudi Arabia Saudi Arabia The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World... |
262.7 |
| Canada Canada Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean... |
178.9 |
| Iran Iran Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia... |
133.3 |
| Iraq Iraq Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert.... |
112.5 |
| United Arab Emirates United Arab Emirates The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a... |
97.8 |
| Kuwait Kuwait The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the... |
96.5 |
| Venezuela Venezuela Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south... |
75.6 |
| Country | Millions of Barrels |
|---|---|
| Saudi Arabia Saudi Arabia The Kingdom of Saudi Arabia , commonly known in British English as Saudi Arabia and in Arabic as as-Sa‘ūdiyyah , is the largest state in Western Asia by land area, constituting the bulk of the Arabian Peninsula, and the second-largest in the Arab World... |
9.5 |
| Russia Russia Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects... |
9.2 |
| United States United States The United States of America is a federal constitutional republic comprising fifty states and a federal district... |
7.6 |
| Iran Iran Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia... |
4.0 |
| China China Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture... |
3.5 |
| European Union European Union The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958... |
3.4 |
| Mexico Mexico The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of... |
3.4 |
See also
- Petroleum industry in IranPetroleum industry in IranIn 2004 Iran produced 5.1 percent of the world’s total crude oil , which generated revenues of US$25 billion to US$30 billion and was the country’s primary source of foreign currency. At 2006 levels of production, oil proceeds represented about 18.7 percent of gross domestic product . However, the...
- International Rankings of Iran in Energy
- 2007 Gas Rationing Plan in Iran2007 Gas Rationing Plan in Iran2007 Gasoline Rationing Plan in Iran was launched by president Mahmoud Ahmadinejad's cabinet to reduce that country's fuel consumption. Although Iran is one of the world's largest producers of petroleum, rapid increases in demand and limited refining capacity has forced the country to import about...
- Iranian Economic Reform PlanIranian Economic Reform PlanThe Iranian targeted subsidy plan also known as the subsidy reform plan was passed by the Iranian Parliament on January 5, 2010. The government has described the subsidy plan as the "biggest surgery" to the nation's economy in half a century and "one of the most important undertakings in Iran's...
- Oil megaprojectsOil megaprojects-Megaprojects predicted for individual years:-New supply addition per country from oil megaprojects:Volumes shown are in thousand barrels per day. The summary table below is produced by a Perl script parsing each annual table...
- Energy SuperpowerEnergy superpowerThe term energy superpower does not have a clear definition. It has come to be used to refer to a nation that supplies large amounts of energy resources to a significant number of other states, and which therefore has the potential to influence world markets to gain a political or economic...
External links
(MoP)- SHANA - Official News Service for Oil and Gas in Iran
- National Iranian Oil Company
- Oil & Gas in Iran - Brief study (2003)
- US Department of Energy - Iran's entry
- Oil & Gas Industry Profile for Iran - Australian trade
- Oil & Gas in Iran (Q1 2010 report)
- Ministry of Petroleum Overview
- BBC - Iran in Maps