According to WPB, if we look at the data published in the latest OPEC monthly report, a clear picture of Iran's heavy oil pricing situation is seen, where each barrel of oil was traded for $64.25 cents. compared with the average of 2024, which stood at USA$80.30 cents, it represents a heavy price correction about 24%.
Technical analysis of the market also shows that the price of this oil grade like other global indicators has led to a downward trend. it seems that the current descending movement has increased price to a five- year low and this month can be registered as the support floor and the lowest rate in the last half of the decade.
In order to improve the situation, the Iranian minister of petroleum met in a meeting attended by the country's president to finalize investment agreements.
Pointing out that this day witnessed the signing of two packages in the field of "guaranteeing the purchase of drilling services" as well as in the "purchasing department of crude oil companies", the Iranian minister emphasized that each of these two spheres, such as the two wings of the flight, would act as the two wings to promote the country's crude oil production capacity, and would lead to the improvement of its economic indicators.
Emphasizing that the implementation of the guarantee plan for the purchase of services from the drilling rigs, he said that the model, supported by the oil industry, would launch a large tsunami of investments to modernize the country's drilling fleet.the sum of the financial value of the agreements signed to purchase the guarantee of the drilling services along with the support services is estimated at about one billion dollars, which causes the incorporation of 20 drilling machines to the country's drilling fleet.
Iran's national oil company will buy a guaranteed purchase of drilling rings and its ancillary equipment by private and private investors during a five-year period, which will eventually strengthen the operational capability of Iran's drilling fleet.
This leap is considered as the development of new wells and acceleration in the development of the upstream part of the oil and gas industry of Iran which exceeds the promotion of production level, creating a stable flow of income and job opportunities.
along with this big step to reinforce the potential of drilling with the aim of enhancing the production of crude oil from six oilfields, including Mansuri, water Timor, Ramshir, Mansourabad, Karanj and Golkhari, an agreement was signed to purchase the services of the crude oil reserve units of the skid-mounted and the operation of desalination and dehydration of crude oil extracted from these fields.
The national oil company has signed a contract worth $1.7billion. the agreement, which is set up by construction,ownership and exploitation (BOO) for a ten-year period, aims at buying crude oil processing services.
The construction timeline of the new facility is estimated to be about 15 months. this operating timeline is considered an important leap in the direction of the operation of oil fields in comparison to the construction of fixed factories which usually take 36 months at best.
It is expected that the new processing capacity of 315 thousand barrels per day is provided by transferring these projects to the private sectors. this will not only prevent the daily production loss of 180 thousand barrels, but it can also increase crude oil production to 135 thousand barrels per day.
Also, despite the intensification of sanctions and the presence of numerous operational obstacles, the statistics show that the average production of crude oil in recent weeks has experienced a rise of 225 thousand barrels per day.
Focusing on the priorities of the ministry of petroleum to maintain resources in the fields, production from the south pars field also recorded a record of 725 million cubic meters per day,which authorities consider it a result of their expertise and collective effort.
the design of modern models has paved the way for the private sector to be present upstream of the oil industry, an area previously exclusively owned by oil giants with huge capital.
This new strategy has caused the upstream value chain to be split into smaller components and it is possible to use micro-capital. in addition to the increase in production, it is expected that these contracts will provide about 11,500 direct and indirect employment opportunities for youth, whose purpose is to strengthen the livelihoods of the people in the current situation.
In total, by implementing these agreements by private sector, the country's crude oil processing capacity will increase to 315 thousand barrels per day. however, taking into account six new contracts, along with two previous agreements signed with the private sector, the total capacity assigned to this sector reaches 430 thousand barrels per day.
The projections indicate that the implementation of these plans will bring about $70 billion over a decade. it is also said that these projects will contribute to the employment of about 7 thousand people in the regions of the country.
By WPB
News, Bitumen, Trade, Iran, Oil, oil contracts, strategy, Analysis
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