Petrochemical plant

Deals signed at Iran Oil Show


TEHRAN, May 8, 2017 – The Philippines National Oil Company’s exploration offshoot, PNOC EP, signed an MoU with the National Iranian Oil Company on Monday for the study of two Iranian fields.

The deal was signed during the Iran Oil Show 2017, underway from Saturday to Tuesday in Tehran.

The company will undertake studies of the onshore Pazanan and offshore Darquain fields.


The Pazanan oil and gasfield is estimated to hold 850 bcm-1.42 tcm (30-50 tcf) of natural gas and 1 billion barrels of oil. Production began in 1974 and today varies between 35,000 and 55,000 boepd.

The Darquain oilfield is estimated to hold 1.3 billion barrels of recoverable reserves. Production began in 2005, and stands at 55,000 bopd.

Ethylene deal reached
Iran’s Persian Gulf Petrochemical Industries Company (PGPIC) also signed a deal at the event, agreeing to sell 11,000 tonnes per month of ethylene to Japan’s Itochu. The deal, signed on Sunday, will be worth USD 150 million per year, a PGPIC official said.

Created as part of a drive to partially privatise Iran’s petrochemicals sector, PGPIC ran 70% of the country’s petrochemicals developments as of February 2017.

Other highlights from the event:

• Iran’s Iranoil and Petronas signed a deal under which the Malaysian company will transfer technology related to industrial lubricants.
• A SOCAR official said the company is in talks with Iran’s Ghadir Investment Group on potential gas swap or E&P deals to be signed this year. He also named Parsian Oil and Gas Company as another potential Iranian partner.
• Abbas Kazemi, managing director of the National Iranian Oil Refining & Distribution Company, said implementation of the mid-2015 Joint Comprehensive Plan of Action has reduced the price of importing industrial equipment into Iran by two-thirds
• Deputy head of engineering and development affairs for the National Iranian Oil Company Gholamreza Manouchehri said Iran plans to increase its daily crude production capacity by 3 million barrels to gain global market share.
• A Mitsubishi Chemicals official said the company intends to expand its activities in Iran, including its relationship with existing customers.