Iranian deputy oil ministry Hossein Zamani-Nia said Apr.16 that $50-80B worth of foreign investment is expected to be attracted to Iran’s energy projects, including $10B into the petrochemical sector in near future.
According to Trend news, In total, $185 billion worth of investments is needed, he said.
Zamani-Nia said $85 billion are planned to be invested in the upstream oil sector by 2021.
However, Homayoun Falakshahi, senior Iran analyst at Wood Mackenzie told Trend Apr.28 that "We estimate that National Iranian Oil Company (NIOC) would need $115 billion over 20 years to develop the 50 oil and gas fields it has shortlisted for investment under the IPC."
"Despite much interest from international oil companies, it is unlikely that all of these projects will be awarded, so the actual level of investment will be a lot less. Because of ongoing US sanctions, international banks continue to be extremely cautious. This will make it difficult for Iran to attract the required capital, at least for now," he said.
Iran introduced 49 oil and gas fields to foreign investors based on newly designed oil contract, called the Iran Petroleum Contract (IPC) in 2015, but it hasn’t issued tenders on them yet.
Previously, Iran's Oil Minister Bijan Namdar Zanganeh said that about $20-$30 billion worth of foreign investments are expected to be attracted based on the IPC.
About 80 percent of Iran’s active fields are in their second half life and lose 8-12 percent of productivity every year.
Iran says its old oil fields would lose 0.3 mb/d of productivity during this year, but 0.35 mb/d of oil would be added from new fields, like Azar, oil layer of South Pars, West Karoon block, etc.
Falakshahi says that Iran’s biggest potential clearly lies in the West Karun fields, which are huge and in early phases of development.
"Fields such as Azadegan or Yadavaran could produce more than 1 mb/d combined. However, new output from other fields is will also make a significant contribution – Azar and the South Pars Oil Layer will produce a combined 90 kbd by 2020".