Russian Officials to Attend Iran Oil Show 2023 for Signing Cooperation Documents

Iran’s Oil Minister Javad Owji and Russian Deputy Prime Minister Alexander Novak, as the heads of Iran-Russia Economic Commission, held phone talks on Monday and discussed bilateral cooperation in the fields of oil, gas and petrochemicals.

Owji and Novak also discussed the scheduled visit of a high-ranking delegation from Russia to Tehran next month to sign cooperation documents, the Oil Ministry’s news service Shana reported.

Regarding the issue, the deputy oil minister for international affairs and trade said the two sides are scheduled to sign documents during the business-to-business (B2B) meetings at the 27th Iran International Oil, Gas, Refining and Petrochemical Exhibition, also known as Iran Oil Show 2023.

“The Russian delegation, including the head of the Central Bank of Russia, Elvira Nabiullina, will attend the opening ceremony of the event and Russian officials will discuss Moscow-Tehran cooperation in banking, transit, oil, gas and petrochemical sectors,” Ahmad Asadzadeh added.

Held at Tehran International Permanent Fairground from May 17-20, Iran Oil Show 2023 is to host more than 1,500 Iranian and foreign oil, gas and petrochemical companies, knowledge-based firms, start-ups, and universities.

The two sides’ delegations, comprising four working groups, will exchange views on boosting bilateral cooperation by trading oil, gas and petrochemical products, making investment, exporting technical and engineering services, manufacturing, supplying and repairing oil equipment.

The meetings are aimed at familiarizing the Iranian and Russian delegations with each other’s regulations, incentives and investment opportunities in Iran’s oil, gas and petrochemical industries.

Relations and cooperation between Iran and Russia, the two largest holders of the world’s oil and gas reserves, have been fast-tracked in the past year, prompting the two countries to expand their ties in different areas, including economic and energy sectors.

Previous Agreements

Last year, a memorandum of understanding was signed with Russia’s oil and gas giant Gazprom to develop two gas fields and five oilfields shared with Arab neighbors with an investment of $40 billion.

The long-term plan will help raise crude output from the current 2.5 million barrels a day to 5.7 million bpd in 2030. Natural gas production is expected to increase by 500 million cubic meters to reach 1.5 billion cubic meters in eight years.

Of the total investment ($40 billion), $10 billion will be allocated to the expansion of North Pars Field, located 120 kilometers from the southern Bushehr Province, and the development of Kish Gas Field, the second largest field in the Persian Gulf after South Pars located 30 km east of Lavan Island.

North Pars is one of the biggest independent gas fields, wherein 17 wells have so far been drilled and 26 offshore platforms have been installed. It has the capacity to produce 100 million cubic meters of gas per day by drilling 46 wells.

Its gas is planned to be used at processing plants for the annual production of 20 million tons of liquefied natural gas.

The Kish Gas Field’s development plan includes three phases. In the first phase, 14 wells were drilled but production has not started.

A 200-km pipeline is planned to be laid to connect the field to refineries in South Pars Gas Field and Fajr Jam Gas Refinery in Bushehr.

Iran (34 trillion cubic meters) and Russia (32.6 tcm) hold the largest proven gas reserves in the world, according to the BP Statistical Review of World Energy.

Gazprom will also invest $10 billion to develop oilfields, such as onshore Karanj, Abteymour and Mansouri fields in Khuzestan Province, in addition to Azar and Changouleh fields near the Iraqi border in Ilam Province.

Iran is sitting on an estimated 836 billion barrels of oil and condensates in place, of which 239 billion barrels are recoverable.

Published: Apr 25, 2023

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