Iran's worldwide crude oil exports

Iran exports oil all over the world. In fact, in Iran, net oil export revenues amount to approximately US$57 billion and, while oil exports provide approximately half of the Iranian government's revenues, crude oil and its derivatives account for nearly 80 percent of total exports.

When it comes to OPEC crude oil production, Iran produces 3.8 million barrels per day, which is approximately 4.5 percent of global production.

Now though, Iran has sought at least US$1 billion as an advance from India for supplying five million tonnes of liquefied natural gas a year from 2012 - yet the demand may not be entertained by the buyers.

Iran LNG Co, a subsidiary of state-run National Iranian Oil Company, has asked Oil and Natural Gas Corp (ONGC) and its partner Hinduja Group to pay the advance so that it can complete a US$4.35 billion plant that will liquefy the natural gas produced from fields in the Persian Gulf, a source said to Express India.

Advance

The demand for advance money came when ONGC-Hinduja were negotiating for a stake in the development of the Phase-12 of the giant South Pars field. South Pars Phase-12 is to feed gas to the LNG plant being built by Iran LNG at Tombak Port by 2011.

The source, said that the demand is unlikely to be met as there was no dispensation at present under which advance money can be paid for purchase of oil or gas at a future date.

US technology

With US technology not coming the Iranian way because of sanctions, the Iran LNG plant that will turn natural gas into liquid state will use technology from Statoil-Linde of Europe.

The two trains will produce almost 8.5 million tonnes per annum of LNG from gas piped in from the Phase 12 development of the giant South Pars gas field. The designated capacity is below the 10.5 million tonnes a year target cited in recent years by Iranian officials.

Construction on the Iran LNG plant, being built at Tombak Port, about 50 kilometers north of Assaluyeh in Bushehr province, started in 2007 and is 25 percent complete. The plant will cost USD 4.35 billion and is expected to become operational in January 2011.

 

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