Contract on the development of Golshan and Ferdowsi gas fields was inked in a ceremony attended by Oil Minister Gholamhossein Nozari and Malaysian Ambassador Monshe Afdzaruddin in Tehran on Wednesday.
The deal was signed by Pars Oil and Gas Company (POGC) Managing Director Ali Vakili, who represented National Iranian Oil Company (NIOC), and Syed Mokhtar Al-Bukhari, the head of Malaysia’s Al-Bukhari Foundation, PIN wrote.
According to the contract, SKS Ventures, a subsidiary of Al-Bukhari Foundation, will develop the two gas fields in southern Iran.
The two sides had earlier signed a $16 billion memorandum of understanding on the development of two gas fields and the establishment of LNG production units. The agreement was concluded between the state-owned NIOC and SKS.
At the ceremony, Nozari said the new method of signing buyback contracts and participation of both sides was welcomed by foreign companies. “Development of the upstream section of the two gas fields will be implemented by Malaysia’s SKS Ventures based on a buyback contract,“ he said.
“Another long-term 25-year contract is expected to be inked on the downstream section of the fields,“ he added.
Golshan field holds 42 to 56 trillion cubic feet (tcf) of in-situ gas. Golshan is located 180 kms southeast of Bushehr city, 65 kms (40 miles) from Iran’s shore.
Ferdowsi field, located 190 km southeast of Bushehr and 85 km from the Iranian coast, has estimated to have in situ gas reserves of 9 to 13 tcf.
Iran’s estimated gas reserves, the world’s second-largest after Russia, amount to 971.150 tcf (more than 26 tcm). The country is in urgent need of developing its gas fields both to supply domestic demands and fulfill its export plans for Europe and Eastern Asia.
Vakili said the POGC was holding extensive negotiations with companies on investment in Pars Special Economic Energy Zone (PSEEZ), Asalouyeh.
“Based on policies of National Iranian Oil Company, we have to develop and exploit the fields of South Pars, North Pars, Golshan, Ferdowsi and Farsi as soon as possible,“ he concluded.

According to figures released by Iran’s Customs Administration, around 23,616 cars worth $473,235 million were imported during the first eight months of the current Iranian calendar year (started March 21, 2007).
Car imports increased by 55 units in terms of quantity, 60 percent in weight, and 72 percent in value compared to the figures for the same period last year, Fars news agency reported.
Last year, the country produced one million automobiles. This year production stood at around 666,000 units during March-November. The share of foreign-made cars in the market stands at just about 3.5 percent--a further proof that consumers still have little choice on what type of cars they can purchase.
Iran also imported spare parts for automobiles worth $391 million during the same period, showing a rise of 52.9 percent in terms of value compared to the figure for the same period last year.
Currently, most Iranian cars are made under license from foreign companies. Iran has automobile production ventures with foreign countries and companies in a bid to raise its global market shares.
For instance, Azerbaijan, Belarus, Syria, Vietnam, Venezuela and China are among the many world countries which either have asked for or are already assembling Iran Khodro’s Samand brand.
In addition, Turkey, Bangladesh and Pakistan are considered as established importers of gasoline and gas-powered Samand models with left and right-hand drive.
Marketing researches have shown that given the financial capability of South Asian markets and the competitive advantage that Iran enjoys, the country can gain a foothold in many world markets in a relatively short period of time.

Close to 3.28 billion liters of the total gasoline consumption pertained to Tehran.

More than 40.13 billion liters of gasoline and diesel were consumed in the country during March 21-Dec 21, 2007.
According to Fars new agency, gasoline and diesel made up about 18.04 billion and 22.09 billion liters of the figures respectively.
The report put the average gasoline and diesel consumption during the period at 65.36 billion and 80.04 billion liters respectively.
At an average cost of 7,000 rials for the import of each liter of petrol and diesel, about $28.093 billion were spent for imports during the period.
If the average daily gasoline production in Iran’s refineries is taken at 45 million liters, in excess of 12.4 billion liters of gasoline were produced in the country and 5.6 billion liters were imported to meet domestic gasoline consumption during the 9-month period.
The report said that about 3.28 billion liters of the total gasoline consumption pertained to Tehran.
Majlis Research Center reported earlier that about $1.1 billion should be allocated to the government for gasoline imports.
Average consumption of gasoline has been 59 million liters per day since gasoline rationing came into force in late June. The figure shows a 22-percent, or 5.75 million liters, decline compared to the amount for the same period last year.

Iran has retained its top rank in the global market for hand-woven carpets in spite of the recession and declining demand for the product, said financial manager of Iran’s National Carpet Center.
Mohammad Najjar put current value of carpet exports worldwide at $1.3 billion noting that the figure was over $2.5 billion in the past decade, according to IRIB News.
He pointed out that presently Iran exports $405 million worth of carpet annually showing a considerable decline compared to the figures in previous years.
The official said that statistics released by international organizations are based on figures provided by the customs departments of each country. He however questioned the figures released by Iran’s Custom Administration.
He also attributed the lower demand to the change in the lifestyle of new generation of Americans and Europeans as well as emergence of machine-made carpets.
Najjar said that domestic carpet market also faces similar problems, adding the new generation is not interested in hand-woven carpets.
However, Iranian carpet has not lost its global popularity, he said, adding many people are still eager to own genuine Iranian-made carpet.

About 800 billion rials were spent on manufacturing oil industry equipment during March-December.

Managing director of National Iranian Drilling Company (NIDC) said that the company would raise its investments by $1.05 billion in the next two years.
Heidar Bahmani said this during a visit to the 5th Drilling Expo in Ahvaz, Khuzestan province.
“Given the plans and support of oil minister and National Iranian Oil Company (NIOC), 23 onshore and three offshore drilling rigs were added to NIDC’s installations,“ said the official.
He told IRNA that the facilities for drilling industry were purchased from domestic producers in an effort to support domestic production.
The official pointed out that about 800 billion rials were spent on manufacturing oil industry equipment during March-December.
Bahmani continued that the country has succeeded in manufacturing special parts required for the oil industry. It has also started to build oil derricks, he added.
The NIDC celebrated the 28th anniversary of its establishment in a ceremony in Ahvaz last Saturday. Oil Minister Gholamhossein Nozari sent a message on the occasion congratulating those active in the oil sector particularly the hardworking staff of drilling industry and wished them success.
“In the past 28 years, the personnel of drilling industry have made every effort to indigenize the strategic industry, scoring successes in different stages,“ read the message.
He hoped that NIDC will make more serious attempts and have a strong presence in the international markets.
The 5th Drilling Expo was held in an area of 2,000 square meters, displaying the latest achievements and products of domestic manufacturers in 90 stands. Nozari visited the pavilions and was briefed on domestic capabilities.
The expo was open to the public for four days from December 22 to 25.

The National Petrochemical Company (NPC) planning manager announced Wednesday that $16 billion will be invested in the second phase of petrochemical sector of Pars Special Economic Energy Zone (PSEEZ), Asalouyeh, southern Iran.
Jalil Ebrahimpour, who was speaking on the sidelines of the Conference on Modern Petrochemical Era in Asalouyeh, Bushehr province, added the fund would be used to set up 22 petrochemical plants, PIN reported.
According to the official, the budget is twice the figure invested in the first phase of Asalouyeh petrochemical sector.
He said the second phase of the project will help the country take the step toward developing the petrochemical industry.
Ebrahimpour added, “Out of 22 petrochemical units, the three plants of Kavian, Morvarid, and Mehr are under construction and are expected to come on stream by mid-2008.“
He said the NPC had signed a contract with Sazeh Pardaz Consultant Company to provide utilities needed by the second phase units.
Turning to private sector participation in the projects of the second phase, the official said a contract on the construction of water, electricity, and steam power plants had been also inked, adding Iran Power Plant Projects Management (MAPNA) would implement 80 percent of related operations and the NPC would be in charge of the remaining 20 percent.
However, the NPC managing director last Monday said that $12 billion would be invested in the second phase.
Gholamhossein Nejabat made the statement while speaking to reporters on the sidelines of conference in Asalouyeh.
He said that domestic petrochemical output would rise to 23 million tons by March 2008, earning the country $8.4 billion. “At present, PSEEZ accounts for 50 percent of the country’s petrochemical production,“ he noted.
Nejabat said that petrochemical plants in PSEEZ had an advantage over others in different parts of the country as they were well fed by the refining phases of South Pars field.
The managing director added $8.3 billion had been invested in the first phase of Asalouyeh.
“Most of petrochemical complexes of the first phase have come on stream and Arya Sasol and Jam complexes are the last plants which are expected to go on stream by next March,“ he said.
The conference was held from December 22 to 26.

Tuesday was the opening day of the First International Water and Affiliated Industries Exhibition opened on Tuesday at the Kish International Fairground, reported IRNA.
Over 60 Iranian and foreign companies will showcase their latest water industry products and technologies at the four-day event.
The exhibition has been organized jointly by Kish Free Trade Zone Organization, Kish Trade Development Center and Asr-e Tarabaran Company.
Products on display include, but not limited to, water and sewage systems, water network designs and blueprints, pumping systems, pipeline systems, production of pipes and transfer equipment, water and sewage treatment systems.
Other systems on display include water distribution networks, water and sewage laboratories, resource engineering, water reservoirs, as well as industrial and building pipes.
Two training workshops with a focus on water and sewage treatment will also be set up on the sidelines of this international event. The exhibition will end on Friday.
Kish Island, which has an area of 91.5 sq. km, is situated 18 kilometers off Iran’s southern coast and about 300 kilometers from the port city of Bandar Abbas. It is the most up-to-date model of urban development in Iran.

Based on plans, about 22 combined cycle power plants should be constructed by March 2013, said Ali Bani-Hashemi, head of Iran Power Development Organization’s combined cycle power plant projects.
He asserted that once the units are operational, power generation capacity would increase by 3500 megawatts, reported IRIBNews.
He noted that a number of gas-fueled power plants with the total capacity of 12,000 megawatts have been commissioned or are under construction nationwide. If they are converted into combined cycle power plants, about 6,000 megawatts would be added to the domestic power production capacity without the need for extra fuel, he stated.
Underlining that with the construction of these units, the efficiency of the domestic power plants would also increase, he noted that the initiative would also save on fuel used by power plants.
Therefore, the savings from the steam sector of combined cycle power plants will be around eight trillion rials per year, he added.
Bani-Hashemi put the cost of constructing the steam sector of a 160-megawatt cycle power plant at 1.6 trillion rials on average. If the system is constructed in the form of gas-fueled power plant, about 290 million cubic meters of gas costing 200 billion rials would be consumed annually, he said.
So, the investment on a 160-megawatt combined cycle power plant could be returned in eight years by reducing fuel consumption, he pointed out.
Furthermore, with the sale of the power generated by the power plant, the period needed for capital return would be reduced to five years, he concluded.