Page 5 - Financial Tribune No 638

LATEST NEWS EU on Track EU countries are on track to meet their 2020 targets for renewable energy and final energy consumption to come from renewable sources, and that number Brent Price
to Meet 2020 emissions cuts but could fall short of ambitious longer-term goals, the European rose to 16.4% in 2015 from 16% in 2014, according to preliminary estimates cited
Renewable Environment Agency (EEA) said. “The EU’s 2020 targets on energy and climate are in the report. Energy consumption and greenhouse gas emissions grew slightly in
Target now well within reach,” EEA executive director Hans Bruyninckx said last week, 2015 but the increase came after “an exceptionally warm winter” the previous
AFP reported. “But certain trends are alarming, in particular for transport. In that year, which led to lower energy demand for heating, the report said. The EU was
IRANIAN ECONOMIC DAILY sector, renewable energy use remains insufficient and greenhouse gas emissions also well on its way to meeting its target of reducing energy consumption by 13%
are rising again,” Bruyninckx added. The bloc’s 2020 target calls for 20% of gross compared to 2005 levels.

5
www.financialtribune.com/energy DECEMBER 5, 2016

Lukoil Voices Interest in should decide among themselves," he said, adding Iran had that Russian companies are potential investors in oil and gas WTI Price
"Owning Part of Iran's Oil" confirmed its interest in resuming ties with the country. projects in Iran. In related news, Fedun said he may sell his Natural Gas Price
stake in Lukoil to Kremlin-controlled Rosneft.
Lukoil is interested in participating in Iranian energy projects if "(Lukoil’s president) Vagit Alekperov has met with Iran’s oil
it gets the right to manage a part of oil, but would not agree to minister (Bijan Namdar Zanganeh), they confirmed the interest Fedun, who owns little less than 10% in the company, told
solely provide services, Lukoil’s Vice President Leonid Fedun our company participates, as we have a very good reputation. the newspaper that "in theory" Rosneft may acquire Lukoil.
said in an interview with TASS on Dec. 3. I hope very much, if Iran offers acceptable terms of the oil
contract, we shall be pleased to work there." "You know, never say never. If they came to you and say ...
"I am aware, they have drafts of a new oil contract, which we offer you $100 billion for your company. Who would refuse
is a mix of production, sharing and buyback," Fedun said. "It Alekperov had said that in October-November 2017, Lukoil it? I, personally, don't," he was quoted as saying by Reuters.
is extremely important for us to be able to own some part of may sign contracts with Iran to develop two oilfields, namely
(Iran's) crude oil, so that we could include this oil in our assets." Mansouri and Ab-Teymour. Rosneft, owned by Igor Sechin, a long-standing ally of
President Vladimir Putin, became the world's largest listed oil
"We are not going to be involved in services only, we have Iran has already signed three memoranda of understanding producer by output when it bought Anglo-Russian firm TNK-BP in
been discussing it with them (Iran), and as yet this is what they with Russian oil companies Lukoil, Tatneft and Zarubezhneft. 2013. Last month, it also acquired mid-sized oil producer Bashneft.

Earlier a representative of the management of the National There has been market speculation that Lukoil could be
Iranian Oil Company (NIOC) Gholamreza Manouchehri said Rosneft's next acquisition target.

NIOC Seeks Petrobras
Role in Caspian Drilling

Brazil has plans India Pushing for Farzad-B
to benefit from Development Rights
the experience of
Iranian oil experts India has nudged Iran to quickly award rights to develop the
in developing oil coveted Farzad-B Gas Field in the Persian Gulf to ONGC Videsh
projects by wrapping up negotiations that have been dragging on for
months. Indian Oil Minister Dharmendra Pradhan met Iranian
Iran wants to expand oil and gas Iran wants to team up with Brazilian firms to conduct deepwater oil exploration. Foreign Minister Mohammad Javad Zarif on Saturday to press
cooperation with Brazil, the fastest- for award of rights to develop the field, which was discovered by
growing oil producer outside OPEC, Oil According to Zanganeh, Brazilian are normal. projects in the Caspian Sea. OVL, at the earliest, PTI reported.
Minister Bijan Namdar Zanganeh said. manufacturers can also embark on joint ventures Underscoring Iran's technical expertise KEPCO had reached an agreement with
He made the remark on the sidelines of to produce 10 types of essential goods and "Our relationship is much more than a usual (bilateral)
a meeting with Fernando Bezerra Coelho equipment in the oil and gas industry, including in implementing refinery and oil discovery Petrobras in 2010 on developing two exploration relationship," Pradhan told PTI. "We stood by them (Iran) in their
Filho, Brazil’s energy minister, in Tehran on drilling bits, control valves, electromotor, rotating projects, Coelho Filho said, "Brazil has plans blocks after three years of negotiations, the difficult times (US and western sanctions) and continued to buy
Saturday, IRNA reported. machinery and metering devices. to benefit from the experience of Iranian oil official said, but international sanctions forced oil from them."
experts in developing oil projects." the Brazilian company to pull back.
"Iran is ready and willing to provide Calling for establishment of stronger He said that he reminded the visiting minister of Iran's
Brazilian refineries with crude oil," he noted. banking relations between the two sides, the According to the Brazilian minister, Traditionally an oil-producing area, the commitment to awarding the field development to OVL on
oil minister noted that long-term cooperation investment companies in his country have Caspian region's importance as a natural gas nomination basis.
Highlighting the vast experience of with Brazil is on the NIOC priority list. expressed willingness to invest in Iran's oil producer is fast growing. Most of the sea's
Brazil's state-run oil company Petrobras in industry, especially in exploration projects, offshore oil reserves are in the northern parts "I hope they will complete the process within the agreed
undertaking deepwater exploration and drilling "In his recent trip to Brasilia, our Economy following Tayyebnia's trip. of the sea, while most of the offshore natural timeframe," he added. In October, the two nations had pushed
projects, Zanganeh said, "The National Iranian Minister Ali Tayyebnia discussed clearing gas reserves are in the southern regions. back the timelines for concluding a deal on Farzad-B field to
Oil Company can use Petrobras expertise to banking and business obstacles in a meeting Caspian Exploration February from November agreed previously.
explore oilfields in the Caspian Sea." of Brazil-Iran Economic Commission," According to Ali Osuli, Khazar Exploration Brazil, which is developing huge offshore
Zanganeh noted, saying that the two countries and Production Company managing director, oil reserves, will boost output by 290,000 "Let me just say that I am hopeful of concluding the deal within
Last month, Zanganeh said Iran is planning pursue similar economic ambitions which KEPCO has opened talks with Petrobras to barrels a day next year to 2.9 million a day, the agreed timeframe," Pradhan said when asked if Iran would
to team up with Brazilian firms to conduct cannot be fully realized unless banking ties carry out deepwater exploration and drilling the biggest increase of any non-OPEC nation, award the field to OVL within this fiscal.
deepwater oil exploration in the northern according to the International Energy Agency.
waters. Iran is reportedly unhappy with the $10 billion plan submitted
by OVL, the overseas arm of state-owned Oil and Natural Gas
In the past few years, extraction of oil Corporation (ONGC), for development of the 353 billion cubic
and gas from the Caspian Sea has risen meters reserves in Farzad-B field and an accompanying plant to
significantly by other littoral states, but Iran's liquefy the gas for transportation in ships.
share has remained zero.
The field in the Farsi block was discovered by an Indian
Iran and Brazil have also signed an consortium led by OVL in 2008. It has an in-place gas reserve of
agreement to jointly build an oil refinery with a 614 billion cubic meters. But India initially felt deterred from investing
processing capacity of 300,000 barrels per day because of the fear of sanctions imposed by the US. With the lifting
in the South American country. The refinery of sanctions this year, it is back discussing a master development
would use Iranian oil as feedstock, allowing plan involving investment of $ 5 billion in field development and an
for long-term supply of the country's crude to equal amount in a liquefied natural gas (LNG) plant.
Brazil.
Gas produced from the field can either be converted into LNG
PGPIC, Japan Company exporter in the Middle East. by freezing at sub-zero temperature and shipping in cryogenic
Sign $341m Usance LC Japanese conglomerate Marubeni Corporation reportedly ships to India or transported through a pipeline -- via overland
passing through Pakistan or subsea.
1 signed a similar financing agreement with the PGPIC in
According to published reports, PGPIC has been seeking September. Nippon Export and Investment Insurance (NEXI), Nigeria, Morocco in
foreign investment of up to €1 billion with short- and mid-term Japan's state export credit agency, will reportedly provide Gas Pipeline Deal
payment periods following the lifting of international financial insurance for the loan.
and trade restrictions against Tehran in January. Nigeria and Morocco have signed a joint venture to construct a
According to the news agency, PGPIC will receive the Petrochem Plans
loan under a financing method known as usance letter of Tehran is making efforts to triple annual petrochemical gas pipeline that will connect the two nations as well as some
credit. production capacity from the present 65 million tons to more
A usance LC usually includes a date of repayment that than 180 million tons in a decade by opening up the sector to other African countries to Europe, Nigeria's minister of foreign
is no more than six months from the date the LC is issued, foreign investors. Japanese companies have been proactive in
making the letter of credit a useful financial tool for meeting expanding their role in Iran's energy market. affairs said on Saturday.
short-term investments. In October, state-owned National Petrochemical
Itochu Corp is Japan's second-largest general trading Company signed a memorandum of understanding with The agreement was
company after Mitsubishi Corporation. It is active in industries Japan's Sojitz Corporation to establish a methanol-to-
such as energy, chemicals, machinery, metals, minerals, food propylene plant in Iran. reached during a visit by
and textiles with annual revenues of $145 billion. Yokohama-based Chiyoda Corporation signed a preliminary
PGPIC is Iran's largest petrochemical company with over agreement earlier this year to carry out major repair works at Morocco's King Mohammed
the Bandar Abbas Refinery in the south.
JX Nippon Oil & Energy Company is in talks over supplying to the Nigerian capital Abuja,
technology and equipment to increase Tabriz Refinery’s
efficiency and cut its mazut output. Geoffrey Onyema, the

minister, said, adding that

the pipeline project would be

designed with the participation

of all stakeholders, Reuters

reported.

PGPIC signed a similar agreement with Japan’s Marubeni "In this agreement both
in September.
countries agreed to study
60 subsidiaries, owning more than 11% of Iran's capital market.
Its exports are estimated at $8-9 billion per year. According to and take concrete steps
published reports, PGPIC is the second biggest petrochemical
toward the promotion of a

regional gas pipeline project No timeline was given for when
that will connect Nigeria's
gas resources, those the pipeline construction.
Air Liquide in Talks on Polypropylene Project
of several West African

countries and Morocco," Onyema told reporters in Abuja.

State-owned National Petrochemical and chemical process licensing company. issued by the government for investment in a talks have been held with foreign companies Onyema said the project aimed to create a competitive
Company is negotiating with France's Air Since 2007, it has been part of Air Liquide 120,000-ton per year methanol-to-propylene including Air Liquide,” Shahdaei said.
Liquide global E&C Solutions (formerly Lurgy S. A., a multinational company which plant and noted that the plant's capacity will regional electricity market with the potential to be connected to
GmbH) on construction of a polypropylene supplies industrial gases and services to be raised to 500,000 tons in cooperation with Esmaeil Qanbari, managing director of
production plant in the country, the NPC industries. Air Liquide. PRTC, said that the methane-to-propylene the European energy markets.
director of production control said on Sunday. unit in the port city of Mahshahr in the southern
The company's operations range Petrochemical Research and Technology Khuzestan Province, has a production No timeline was given for when the pipeline construction work
“To complete the value chain of the from providing technology and services Company has launched a pilot polypropylene capacity of 320 tons of propylene per year.
petrochemical industry, NPC has set a tight in petrochemical and refining sectors to production unit with limited output but has will start and how much it will cost.
schedule, which entails cooperation between renewable energies. plans to boost annual output to 120,000 tons, Plans call for increasing total production of
Air Liquide and Iran’s Petrochemical Research propylene to 4 million tons per annum in 2021 Nigeria is rich in hydrocarbons but produces little electricity,
and Technology Company (PRTC) in building According to Bosaqzadeh, this would be Polypropylene is reportedly the world’s and 8 million tons within the next decade.
a polypropylene unit in Iran,” Ali Mohammad the first time that Air Liquide will embark on second-most widely produced synthetic plastic making its industries uncompetitive. Its economy now faces a
Bosaqzadeh was also quoted as saying by a joint venture with Iran for polypropylene after polyethylene. In 2013, the global market Nominal petrochemical production capacity
Shana. production. for polypropylene was about 55 million tons. is currently at 65 million tons per year. Tehran recession caused by a plunge in crude prices.
hopes to boost it to 130 million tons a year
Air Liquide is an engineering, construction Marzieh Shahdaei, NPC’s managing “Our plan is to raise the output of the by 2021 before reaching the lofty goal of 180 Militants in its oil producing heartland of the Niger Delta have
director, had earlier referred to the permit complex to 500,000 tons per year. To this end, million tons by 2026.
also blown up pipelines in a quest for a bigger share of Nigeria's

oil wealth, which has cut crude output this year.

"Nigeria and the kingdom of Morocco also agreed to develop

integrated industrial clusters in the sub-region in sectors such as

manufacturing, agro-business and fertilizers to attract foreign capital

and improve export competitiveness," the foreign minister added.