Iran upstream summary Report

Country Report 01 January 2024

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Report summary

Iran is an energy giant. The country has the world's fourth largest gas reserves behind Russia, the United States and Qatar and the seventh largest conventional oil reserves. It is the tenth largest oil producer and the third largest gas producer in the world. We expect gas and liquid output to reach approximately 10 million boe/d by the end of 2023, with further increases anticipated in 2024. Production is evenly split between liquids and gas. The state-owned National Iranian Oil ...

Executive summary
- Oil production
- Gas production
- Foreign investment and technology
Key facts
Location maps
Key companies
- Main subsidiaries
- Internationally-based subsidiaries of NIOC
- Selected local E&P companies for IPC projects
  - NIOC-affiliated companies
  - State-affiliated companies
  - IRGC-affiliated companies
  - Private companies
  - Due diligence
  - Operating capability
  - Financing capability
- Foreign companies
Geology
- Introduction
- Regional tectonic framework
- Zagros and Arabian basins
  - The Arabian Platform
  - Reservoirs
  - Structural development
  - Other basins
- South Caspian basin
- Major petroleum plays
  - Dalan formation
  - Kangan formation
  - Khami group (Surmeh (Arab), Fahliyan (Yamama) and Dariyan (Shuaiba) reservoirs)
  - Bangestan group (Kazhdomi (Nahr Umr), Sarvak (Mishrif) and Ilam formations)
  - Asmari limestone
- Source rocks and petroleum type
Exploration
- Licensing
  - 1901-1979
  - Islamic Revolution
  - 1995 - The return of foreign oil companies
  - 1998 - First buy-back round
  - 2003 Offshore licensing round
  - 2004 Exploration licensing round
  - 2007 Exploration licensing round
  - IPC tenders
- Drilling
  - Drilling activity
  - Onshore and the Persian Gulf
  - 1900-1979
  - 1979-2002
  - 2003-present
  - Caspian Sea activity
Reserves and resources
- Oil reserves and resources
- Gas reserves and resources
- Maturity of the reserve base
- Reserves by field
Production
- Oil/liquids
  - Oil production outlook
  - Condensate and NGL production growth
  - Historical production
  - OPEC
- Gas
  - Gas production outlook
  - Dedicated re-injection projects
  - Sales gas historical production
Infrastructure
- Introduction
  - Oil
  - Gas
- Oil infrastructure
  - Gourreh-Jask oil pipeline
  - Pumping stations
  - Deliveries to domestic refineries
  - Oil import infrastructure
  - Oil (and condensate) refineries
  - Oil export terminals
- Gas infrastructure
- Existing pipelines
  - IGAT-1
  - IGAT-2
  - IGAT-3
  - IGAT-4
  - IGAT-5
  - IGAT-6
  - IGAT-7
  - IGAT-8
  - IGAT-9
  - IGAT-10
  - The north and northeast gas pipeline
- Future gas pipelines
  - IGAT-11
- Gas processing facilities
  - Major gas processing facilities
  - Fajr-e Jam (formerly Valli Asr)
  - Bid Boland
  - Khangiran (Hasheminejad)
  - Dalan
  - Assaluyeh and Kangan
  - Parsian 1 and 2
- Export pipelines
  - Turkey
  - Azerbaijan (swap for Nakhchivan region)
  - Armenia
  - UAE - Sharjah
  - Iran Pakistan India (IPI Pipeline)
  - Iraq
  - Iraq-Turkmenistan swap deal
  - Oman
- LNG
  - Supply - South Pars
  - Supply - North Pars
  - Sales
Costs
- Capital costs
  - Capital expenditure by location
- Operating costs
  - Operating expenditure by location
Policy and regulation
- Key legislation
  - Petroleum Act (1974)
  - Oil Act (1987)
  - Other developments
  - Iranian Constitution - Article 44
  - Iranian Constitution - Article 81
  - Iran Libya Sanctions Act (ILSA), 1996
- Regulatory body
- State oil company
- National Iranian Oil Company (NIOC)
  - National Iranian South Oil Company (NISOC)
  - Iranian Central Oil Fields Company (ICOFC)
  - Khazar Exploration and Production Company (KEPCO)
  - Iranian Offshore Oil Company (IOOC)
  - Pars Oil and Gas Company (POGC)
  - Petroleum Engineering and Development Company (PEDEC)
  - Arvandan Oil and Gas Company (AOGC)
- National Iranian Gas Company (NIGC)
- National Iranian Gas Export Company (NIGEC)
- State participation
- Licensing
Fiscal terms
- Overview
- Upstream
  - Buy-back contracts
  - Iran Petroleum Contract (IPC)
- Mid- and downstream
  - Pipelines
  - Gas utilisation
- Current fiscal terms
- Iran Petroleum Contract
  - Main innovations
- NISOC contract
- Buy-back contracts
  - State equity participation
  - Bonuses, rentals and fees
  - Royalty and other production taxes
  - Buy-back cost recovery
  - Buy-back profit sharing
  - Corporate (or Petroleum) Income Tax (CIT)
- NIOC contract terms
  - Government priority production
  - Corporate Income Tax (CIT)
  - Capital and operating costs
  - Royalty
- Sample cash flow - Iran Petroleum Contract (IPC)
- Sample cash flow - buy-back contract
- Historical background
  - The original buy-back concept
  - First generation of buy-backs (up to 1995)
  - Second generation of buy-backs (1995 to 2003)
  - Third generation of buy-backs (from 2003)
- Agreements with international companies