IOTC Director:

850 Tankers Have Docked at Kharg since JCPOA’s Execution

Thanks to the Joint Comprehensive Plan of Action (JCPOA) and its execution, economic restrictions on Iran were lifted, and this has brought about constructive results for the Iranian petroleum industry. Iran’s volume of petroleum export, as the main domestic economic stimulant and the government’s basic revenue, was reduced to half in the era of sanctions; yet, after the nuclear agreement with 5+1 was reached and the JCPOA was executed in January, 2015 Iran’s petroleum industry accomplished a remarkable success, and managed to double its export volume. To delve into this matter further, and to obtain more details regarding the current condition of Iran’s petroleum export and storage, ,MANA correspondent conducted an interview with the managing director of Iran Oil Terminals Company (IOTC) Seyed Pirouz Moussavi.

News ID: 76011

Date: 31 August 2017 - 10:01

Last year was the first post JCPOA year, when the sanctions on Iran were lifted. Could you please elaborate on this situation, and the overall conditions of ships and their voyages?

Given that lifting the sanctions, through settling down Iran’s nuclear controversy and the execution of JCPOA, was one of the most crucial strategies of the administration, IOTC was among the first corporations that paved its way and expressed its readiness in this regard. In line with this policy, and also given that increasing petroleum export which augments the nation’s revenue from this source is the main driving force behind any economic, political and social movement forward, IOTC commenced on improving on its vulnerable spots (i.e., wharfs and berths) immediately after the 11th administration took office. After two years of relentless and professional endeavors and exactly, as planned, concurrent with the execution of JCPOA, IOTC was in possession of nine wharfs to deliver petroleum. This was a remarkable improvement compared to the past, since prior to JCPOA execution, we owned five operational and active wharfs only.

Based on these measures, and in the light of an increase in our petroleum production and export, Iran managed to double the volume of its petroleum export within only six months. We are pleased to announce that currently, we are exporting crude oil double the volume we used to export prior to JCPOA. I must also point out that we served over 850 tankers in Kharg Island after the execution of JCPOA, and it was due to this large number of tankers that our export reached the foregoing amount. No doubt, the revenue from this export has had significant impact on economy and human resources behavior.

In the light of an increase in the commuting of oil tankers to Iranian wharfs, have there been any changes in the export destinations?

Without a shadow of a doubt. In the era of sanctions, no foreign tankers entered Iranian waters. The only exception was the time when an explosion occurred in a Japanese power plant, and as a result of an increase in Japan’s energy needs, one Japanese tanker obtained all the licenses and traveled to Iranian waters under a certain schedule for a limited period of time. Nonetheless, for the time being and owing to the lifting of the sanctions, not only did international tankers return to Iranian waters freely and with no restrictions, but also corporations such as Total and different European countries (e.g. Spain and Belarus) led their own tankers to Iranian waters to carry their cargos.

Have you run into any issues to insure the tankers?

Negative. It could be easily observed through the problem free voyages of the ships to and from Iranian waters.

The Research Institute of Petroleum Industry (RIPI) has endeavored continuously in the field of mixing crude oils. Has this project reached any final results?

Nowadays, credible oil corporations and terminals worldwide perform crude oils mixing based on the orders placed by customers and through automation and cutting edge international standards. Hence, mixing crude oils is a fundamental international need these days. In line with this need, RIPI is finalizing its research and investigations in order to localize this technology. Extensive studies have been conducted in RIPI, and we do hope these studies reach their final outcome by the end of this year. We intend to implement this technology in Kharg Island terminal from the next year.

Now that Iran’s oil industry is expanding, are there any plans in place for swapping?

One of the duties of oil terminals in this regard is to prepare the pipe lines and storage tankers for this matter. In the past few years, we have repaired nine tankers, and we are ready to begin swapping as soon as the national oil company launches its plans.

What will Iran’s current swapping capacity be?

We will have the initial capacity of approximately 100 thousand barrels.

Now that the embargoes against Iran have been eliminated, are you considering collaboration with other countries?

We are currently using local capacities and capabilities; yet ,we are facing a number of deficits in terms of maximal storage capacity, wich we intend to solve by using foreign sources . Besides, considering the changes in the global environmental changes and climate fluctuations, we must achieve the state-of-the-art knowledge and expertise in order to be able to prevent any potential incidents. We are negotiating with a foreign company in terms of maximal storage capacity and sealing systems at present. Moreover, we have taken initiatives in the field of docks (particularly ship-to ship and floating docks). Of course, this area is in need of more attention from and more active participation of industrial craftsmen so that it could localize the foreign technology with high standards.

What measures have taken place in the Jask region?

One of the main effective measures we took in the Jask region was to obtain the official property documents for the operational lands and now, Iran’s ministry of oil is the official owner of such lands. Besides, the required studies for the development of these lands have already been conducted, but due to financial limitations, we are looking for investors to fund the launching of the projects. Hence, these projects will be constructed and implemented with 100% funding of the private sector. Our studies prognosticate that the first phase of operation will produce over 10 million barrels. We do hope to accomplish this phase via establishing a pipeline to the Jask region.

Given it is properly funded, how long does it take to complete this project?

Iran’s Oil Company’s Investment Department is in the process of absorbing investors, and my colleagues are members of the final planning committee. Credible and reliable investment firms, both domestic and foreign, have expressed their willingness to fund this project, and we are finalizing probing the options. We will hopefully hold a tender in the near future and choose the final investor.