BAKU, Azerbaijan, Aug. 2
By Elnur Baghishov – Trend:
The debt of the National Iranian Oil Company (NIOC) to the Central Bank of Iran (CBI) amounted to about $60 billion by the end of the preceding Iranian year (from March 21, 2019 through March 19, 2020), as is reflected in the report of the Islamic Parliament Research Center (IPRC), Trend reports.
According to the report, debt in this amount is a serious obstacle to the future development and investment plans of the NIOC.
“By 2010, the price of crude oil ranged from $100 to $120 per barrel. Based on this, the share of the National Oil Company in expenditures and development was set at 14.5 percent. While by the end of 2020, declining oil demand as a result of the spread of the coronavirus pandemic, a sharp drop in oil prices, as well as US sanctions against Iran's oil exports have significantly reduced the NIOC's revenues,” the report said.
On the other hand, as a result of the departure of foreign investment companies from Iran in recent years due to sanctions, the bulk of investment in the oil sector was provided by the company's local reserves.
According to the report, given the natural complexity of oil reservoirs in Iran, the condition of oil reservoirs, which are in the second half of their life, there is a need for more sophisticated technology and additional costs.
There are currently 74 oil and 22 gas fields in Iran. So, 37 oil fields are operating in the territory of the National Iranian South Oil Company (NISOC), 14 fields – Iranian Central Oil Fields Company (ICOFC), 5 fields – Arvandan Oil and Gas Company (AOGC), and 18 oil fields – Iranian Offshore Oil Company (IOOC).
In addition, 5 gas fields are operating in the territory of the NISOC, 13 fields – the ICOFC, 1 field – Pars Oil and Gas Company (POGC) and 3 gas fields – the IOOC.
Iran’s total hydrocarbon reserves are estimated at 836 billion barrels. With available technology and equipment, Iran can extract 239 billion barrels. Thus, 29 percent of the country's hydrocarbon reserves are recoverable, while 71 percent remain underground.
The US imposed new sanctions on Iran in November 2018. Over the past period, the sanctions affected Iranian oil exports, more than 700 banks, companies, and individuals. The sanctions have resulted in the freezing of Iranian assets abroad.
