Pars Oil & Gas Company announces a great revolution under way in enhancing recovery
Monday, Feb 04, 2013
Iranian president says a big revolution will take place in exploitation of oil and gas reserves of the country in next 4 or 5 years.

Addressing inauguration ceremony of new complex of Research Institute of Petroleum Industry (RIPI), Mahmoud Ahmadinejad said: RIPI should be changed into a leading center in meeting oil industry needs and bring about a great development in the industry by examining the reciprocal impacts between oil industry and other sectors of the economy.

The president named oil industry driving force of the economy adding RIPI should be turned into a leading center for breakthroughs and providing oil industry needs through deploying Iranian workforce capabilities.

It is necessary a strategic approach to be forged in the economy with oil industry in its center, the president said adding despite all valuable efforts in the sector, we are still in the beginning of the road and cannot argue that oil industry has turned into an indigenous industry.

RIPI should take great steps toward self-sufficiency and be changed into a center for providing technical knowhow, the president said.

Referring to existence of 700 billion barrels of in place oil reserves in the country, the president noted: Currently just 25 percent of the reserves are recoverable, but if we manage to enhance recovery rate by just one percent, we will be able to raise recoverable oil by 7 billion barrels.

Ahamadinejad said: In our neighboring countries, average recovery rate from oil and gas fields stands at 35 percent, so it is expected RIPI as the scientific and research arm of oil industry to do everything possible in order to enhance recovery rate.

Each twin phases of South Pars gas field require 5 or 6 billion dollars investment, of which 35 to 40 percent is spent in providing equipment and parts, so we should try to prevent exodus of even these little  amounts through boosting domestic manufacturing and meeting oil industry needs to equipment and technical knowhow.

Emphasizing on necessity of standardization of oil industry equipment, he said oil industry equipments should have specific standards and domestic manufacturers should make oil industry needs based on the defined criteria.

He voiced readiness of the government for backing domestic manufacturers adding we should allow manufacturers take risk because nowadays we need indigenized commodities and equipments. Ahmadinejad alsothanked oil industry’s staff, researchers and experts for their efforts urging them to step up meeting oil industry needs.

Source: Pars Oil & Gas Company

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