70% Oil Industry Facilities Made In Iran

Tabriz, Jan 22, IRNA – Provision and Facilities Affairs Manager of South Oil Fields National Company Nasser Kheradmand said here Monday 70% of required facilities for Iranian oil industries are now manufactured in Iran. According to Iran reporter in Tabriz, Kheradmand who was speaking at a joint gathering of the oil industries managers with the East Azarbaijan industrial managers referred to the noticeable steps taken towards self sufficiency of the oil industry. He reiterated, ˈIn the framework of the policy to support the Iranian manufacturers, no part that can be manufactured inside the country is ordered to any foreign company.ˈ He referred to the tender law which forbids paying over 25% of the production expense in oil companiesˈ tenders he asked the Islamic Parliament, Majlis, to act for lifting this obstacle in order to activate the manufacturing companies. Kheradmand referred to a 50 billion rial contract signed with Petco (Tabriz Pump and Turbine Company), adding, ˈThe Pump Iran Company, too, can enter in this field.ˈ He said, ˈIf we would take greater advantage of the active industrial units, Tabriz alone would be capable of providing the entire pumps needed in our oil industries. Iran manufactures 60–70% of its industrial equipment domestically, including refineries, oil tankers, drilling rigs, offshore platforms and exploration instruments. Iran is an energy superpower and the Petroleum industry in Iran plays an important part in it. In 2004 Iran produced 5.1 percent of the world’s total crude oil (3.9 million barrels (620,000 m3 per day), which generated revenues of US$25 billion to US$30 billion and was the country’s primary source of foreign currency. At 2006 levels of production, oil proceeds represented about 18.7 percent of gross domestic product (GDP). However, the importance of the hydrocarbon sector to Iran’s economy has been far greater. The oil and gas industry has been the engine of economic growth, directly affecting public development projects, the government’s annual budget, and most foreign exchange sources. In February 2009, for example, the sector accounted for 60 percent of total government revenues and 80 percent of the total annual value of both exports and foreign currency earnings. Oil and gas revenues are affected by the value of crude oil on the international market. It has been estimated that at the Organization of the Petroleum Exporting Countries (OPEC) quota level (December 2004), a one-dollar change in the price of crude oil on the international market would alter Iran’s oil revenues by US$1 billion. In 2010, Iran, which exports around 2.6 million barrels of crude oil a day, was the second-largest exporter among the Organization of Petroleum Exporting Countries. In the same year, officials in Iran estimated that Iranˈs annual oil and gas revenues could reach $250 billion by 2015. According to IHS CERA estimate, oil revenue of Iran will increase by a third to USD 100 billion in 2011 even though the country is under an extended period of US sanctions. Iran plans to invest a total of $500 billion in the oil sector before 2025./end