UANI

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“Iranian natural gas flows to Turkey were halted after an explosion and could take up to a week to resume after repairs are completed, officials at the Turkish pipeline operator Botas said on Wednesday.

It was the second time in a little over a month that an explosion halted gas imports from Iran on the key link.”(UPDATE 1-Iran-Turkey gas pipeline hit by blast, flow stopped, Aug. 25th 2010)

“BOTAŞ was established on August 15, 1974 by The Turkish Petroleum Corporation (TPAO) under Decree No 7/7871, for the purpose of transporting Iraqi crude oil to the Ceyhan (Yumurtalık) Marine Terminal, in accordance with the Iraq-Turkey Crude Oil Pipeline Agreement signed on August 27, 1973 between the Governments of the Republic of Turkey and the Republic of Iraq.

Because of Turkey’s increasing need for diversified energy sources, since 1987 BOTAŞ has expanded its original purpose of transporting crude oil through pipelines to cover natural gas transportation and trade activities, therefore becoming a trading company.”(http://www.botas.gov.tr/index.asp)

"Thirty-six years after construction began under the shah, Iran finally opened its first nuclear power plant at a ceremony on Saturday. Attended by senior officials from Iran and Russia, which helped build the plant, the ceremony marked the beginning of the transfer of low-enriched uranium fuel rods from a storage site into the plant. Officials of both countries said that Saturday's events signified the opening, not the startup, of the plant near Bushehr, in southern Iran." (The New York Times, “Iran Opens Its First Nuclear Power Plant,” 08/21/10)

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 “Technicians began the process of moving uranium fuel from a storage area to the reactor at Iran's first nuclear power plant on Saturday, the spokesman for Russia's state-run nuclear corporation said. The beginning of the first stage of the physical start-up has taken place," Rosatom spokesman Sergei Novikov said at the Russian-built plant near Bushehr in southern Iran.” (Reuters Africa, “Start-up of Iran Bushehr plant has begun- Rosatom,” 08/21/10)

“The U.S. Securities and Exchange Commission looked into BHP Billiton Ltd.'s (BHP.AU) activities in Iran and Cuba due to Washington's labelling of the countries as state sponsors of terrorism, according to documents filed with the regulator.

In a document filed June 15, the world's largest miner said that it had earned US$361 million in revenues from Iran in the four years to the end of June 2009 and expected to make a further US$74 million from the country in the most recent financial year.” (FOX Business- BHP Billiton's Iran, Cuba Activities Subject of SEC Inquiry- Aug. 8, 2010) 

Installed pipelines approximately 100km away from the Iranian Southern Coast and onshore pipelines that are routed to the facilities located approximately 4.5km inside Iran. Finished in 2008. (Company Website)

“Australian engineering house WorleyParsons has signed an agreement with China National Petroleum Corporation (CNPC) to review a front-end engineering and design job left behind by departing French giant Total for Iran’s South Pars (SP) Phase 11 gas project.

The three-month job, which involves reassessment of the FEED by Total before it withdrew from the project last year, is at least the second for Worley-Parsons in Iran in 2010. It also coincides with an escalating campaign by the US to isolate the country…. China is aggressively pursuing energy development in Iran, where Western oil companies are reluctant to get involved amid the threat of possible United Nations sanctions against its nuclear enrichment program.

At the turn of this year, WorleyParsons teamed up with Linde of Germany to carry out a FEED for China National Offshore Oil Corporation’s (CNOOC’s) planned liquefied natural gas plant at the North Pars gas project. Both WorleyParsons and Linde worked in Iran before the intensification of Western sanctions against the country in the second half of the decade.” (Upstream, “New Player Set to Review Iran's South Pars 11 FEED,” 5/9/2010)

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 “Iran LNG Company (Iran LNG) has lined up two consortia to contend for a EUR700 million contract to construct the liquefaction units at the center of the twin-train 10.5 million tons per year Iran LNG export scheme. The two consortia were: Pars International Development and Engineering Company (PIDECO) and WorleyParsons Limited; Farab Company and Hua Fu Engineering Company (HFEC).” (nuclear.energy-business-review.com, “Iran LNG Lines Up Two Consortia For EUR700 Million Contract To Construct Liquefaction Units,” 5/12/09)

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“Iran Offshore Engineering & Construction (IOEC) has awarded a sub-contract to Australia's Worley Parsons for the detailed design of elements of the platforms on phase 12 development of the giant South Pars gas field. 
It follows IOEC winning a $ 380 mm contract late last year to construct the top part of the platforms on the offshore rigs, known as topsides.

Houston gas specialist Intec, which was recently acquired by Worley Parsons, previously won an engineering contract for three undersea pipelines totaling 440 km for phase 12. Earlier this year Petropars, a subsidiary of National Iranian Oil Company (NIOC) and the developer of South Pars, awarded a $ 284 mm engineering, procurement and construction (EPC) contract to the local Aras consortium for phase 12. 
NIOC expects to award two further EPC deals, to a local and foreign consortium respectively, in May.

Most of the gas produced from South Pars phase 12 will be used to feed NIOC's planned Liquefied Natural Gas (LNG) plant. 
However, part of the output will also be pumped into the domestic gas network for use in petrochemical projects and reinjection to maintain pressure on oil fields.” (gasandoil.com, “Iran awards South Pars design deal to Worley Parsons ,” 4/22/08)

"Iran’s Oil Ministry said the country had signed a €1 billion ($1.3 billion) pipeline deal to take gas to Turkey and a Turkish firm called Som Petrol said it was the partner in 
the project.

“The one billion euro deal to build 660km gas pipeline was signed on Thursday during the Iranian Oil Minister’s trip to Turkey,” the Iranian ministry said in a statement on Friday...

“The pipeline will enable Iran to export 50 to 60 million metres of gas per day ... It will be constructed within three years,” Javad Oji, head of the National Iranian Gas Export Co. (NIGC), told the Iranian Oil Ministry’s official ebsite (sic) SHANA.

Oji was quoted by the Mehr news agency as also saying that 23 per cent of the project would be handled by the Iranian side and 77 per cent by the Turkish side. One of the world’s biggest oil and gas producers, Iran has been hit by US and UN sanctions that have hindered access to foreign investment and slowed its development as a major exporter.

The website identified NIGC’s Turkish partner as ASB Co., but Som Petrol said it had signed the deal.

“We signed the agreement on the Iran-Turkey pipeline yesterday,” Som Petrol’s Chairman Sitki Ayan told Reuters.

This agreement can be seen as continuation of a project that began in 2008.

Iran and Turkey first agreed on a pipeline project in 2008 with the aim of carrying Iranian gas to Europe.

Ayan said the pipeline would carry 110 million cubic metres of gas per day and is planned to be completed in 2014...

Som Petrol already has operations in Turkmenistan and has been looking to expand business with Iran. A unit of Som Petrol had applied to the energy regulator EPDK for permission to purchase electricity from Iran, according to officials from the regulator.

Turkey’s Energy Minister Taner Yildiz said neither the Turkish government nor state pipeline concern Botas were involved in the deal with Iran, though several private firms had hown (sic) interest.

“Compañía Española de Petróleos, S.A. (CEPSA) leads an industrial group made up of over 11,000 people, whose core activity is the refining of crude oil and marketing of petroleum products.

The company additionally has a strong petrochemicals division that is tightly integrated with the refineries, and is also involved in other energy-related businesses, such as oil and gas exploration and production, natural gas operations and electric power generation and sales.

CEPSA has been in the market for almost 80 years. Thanks to its flexibility and ability to adapt, CEPSA has become one of the leading companies in its sector in Spain. Through the progressive internationalisation of its activities, it also has business interests in Algeria, Brazil, Canada, Colombia, Egypt, Panama, Peru and Portugal, and sells its products all over the world” (Company website, “CEPSA – Profile”).

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"Cepsa, the second-largest oil company in Spain (behind Repsol YPF) refines 121,900 barrels of crude oil daily, primarily in three refineries. Its oil exploration and production efforts are focused on Algeria, Colombia, Egypt, Peru, and Spain. It has proved reserves of 172.5 million barrels of oil equivalent. Cepsa's marketing network includes more than 1,800 gas stations in Spain and Portugal. It also produces a range of chemical products (including polyester precursors, phenol, plasticizers, and polypropylene) and has gas and power interests. Spain's TOTAL controls 49% of Cepsa and Abu Dhabi's IPIC, 47%%" (“Compañía Española de Petróleos, S.A.,” Hoovers, 2010).
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As of April 2010, Cepsa imports 25 thousand barrels of crude oil per day from Iran. (“Iran’s Crude Oil Buyers in Europe, Asia,” Reuters, April 18 2010.)

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“Spain helps Iran in the fields of shipbuilding, oil and gas, power production and fishing, and Iran supplies Spain with mainly oil and petrochemicals.”

“In 2001, Iran exported to Spain $837 million worth of crude oil and various types of petrochemical products, while importing from that country $278 million worth of machinery, power turbines, medicine and chemical products. Trade activities aside, Spain has become a large non-Iranian investor in Iran's fossil energy and petrochemical industries over the last few years. This has reflected particularly in the activities of three major Spanish oil and petrochemical companies in that country. Repsol has invested 2 billion euros (roughly $2 billion) in exploring and extracting Iran's natural gas. The latter has uplifted the status of Spain in the Iranian economy, a result of the Iranians' efforts to reduce their consumption of oil and to switch to natural gas both for economic and environmental reasons.

Another Spanish oil company, Cespa, has been involved in the development of Iran's Cheshmekosh oilfield, while negotiating for its participation in developing certain Iranian offshore oilfields in the Persian Gulf. In the wake of President Khatami's visit to Spain, Cespa and the Spanish government expressed hope to settle disagreements with the Iranian government on the latter during the presidential visit” (Peimani, Hooman, "Spain seeks a bigger share in Iran," Asia Times, November 23, 2002).

“Galp Energia is now the only integrated group of oil and natural gas in Portugal, with activities extending from exploration and production of oil and natural gas, refining and distributing petroleum products, distribution and sale of natural gas and the generation of electricity” (Company website, “Galp Energia at a glance”).
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“The largest oil company in Portugal is Petrogal, a wholly-owned subsidiary of Galp Energia, which is owned by the Portuguese government and a collection of international oil and gas operators. Petrogal controls the domestic midstream and downstream oil sectors in Portugal, and maintains modest production activities in Angola and Brazil” (Petrogal Profile, “Oil and Gas in Portugal Exploration and Production”).

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"[Petrogal] is the sole refiner in Portugal with refineries at Oporto and Sines with a distillation capacity of 15.2 million tonnes a year. Petrogal products are marketed under the name GALP. The Petrogal Group includes more than 30 associates and subsidiaries” (Petrogal Profile, "Petróleos de Portugal - Petrogal SA (Petrogal) - Lisbon, Lisboa, Portugal").

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As of April 2010, Petrogal imports 10 thousand barrels of crude oil per day from Iran. (“Iran’s Crude Oil Buyers in Europe, Asia,” Reuters, April 18 2010.)
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"Portuguese energy company Galp (GALP.LS) is in talks to explore for oil in Iran, Foreign Minister Luis Amado said on Wednesday.

'For several months there have been conversations between Galp and the National Iranian Oil Company (NIOC) on joint exploration at a field in Iran,' Amado told reporters after meeting with this Iranian counterpart.

Amado said the negotiations included both gas and oil" ("Galp in talks with Iran on exploration deal-minister," Reuters, January 23, 2008).

“Founded in 1998, Hellenic Petroleum is one of the leading energy groups in South East Europe, with activities spanning across the energy value chain and in 11 countries. Its shares are primarily listed on the Athens Exchange (ATHEX: ELPE), and its market capitalisation amounts to about €2.2 billion” (Company Website).

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"Greece's largest company, Hellenic Petroleum operates four refineries: at Aspropyrgos, Elefsina, and Thessaloniki in Greece and Skopje in Macedonia. It also operates about 1,525 gas stations in Albania, Bulgaria, Cyprus, Georgia, Greece, Montenegro, and Serbia. It has 1,200 gas stations in Greece (23% of the retail market). Its other businesses include petrochemical production, oil and gas exploration, and infrastructure development. Hellenic Petroleum is owned by Paneuropean Oil and Industrial Holdings S.A. (35.89%) and the Greek government (35.5%)" (Company Profile, “Hellenic Petroleum S.A.,” Hoovers, 2010.)

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As of April 2010, Hellenic Petroleum imports 60 thousand barrels of crude oil per day from Iran. ("Iran’s Crude Oil Buyers in Europe, Asia,” Reuters, April 18 2010.)
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According to Greece’s Ministry of Foreign Affairs, “The Hellenic Petroleum Company has been cooperating with Iran for many years in the crude oil sector” (“Bilateral Relations Between Greece and Iran,” Ministry of Foreign Affairs, December 2008).

"Tupras, Turkey's sole refiner, purchases about a third of its crude from neighbouring Iran. In June, Turkey provided about half of Iran's gasoline needs, but sales last month dropped 73 percent to $25.6 million, equivalent to about one cargo, as sanctions against Iran took effect... 'In the current situation, sales of petroleum products to Iran are not being made. Therefore, there is no possibility that our company will face any kind of sanctions,' Tupras said." (Reuters, “UPDATE 2-Tupras Q2 net misses forecast, no Iran sales,” 08/23/10)

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“Operating four oil refineries, with a total of 28.1 million tons annual crude oil processing capacity, Tüpraş is Turkey’s largest industrial enterprise. In addition, a 50,000 ton capacity petrochemical production facility, a majority stake (79,98 %) in shipping company DİTAŞ and 40% share ownership of petrol retailer Opet, creates synergies and adds value to the operations. The roots of Tüpraş, an integrated petroleum company with a large market share, corporate reliability, production complexes and affiliates, dates back to İPRAŞ (İstanbul Petrol Rafinerisi A.Ş.) founded by the U.S. Caltex Company. In 1983, İPRAŞ and three other publicly owned refineries were brought under the Tüpraş umbrella by arrangements made for a more effective operation of State Economic Enterprises” (Company website, "About Tupras")

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An article on recent further impacts of the sanctions on Iran reports, "Only three cargoes of gasoline have so far reached Iran in July, according to a shipping document seen by Reuters, much less than the seasonal norm, as new sanctions cause ships carrying fuel to be diverted."

"The document seen by Reuters showed only three cargoes of gasoline had arrived this month and were supplied by Turkish refiner Tupras and Unipec, the trading arm of China's Sinpoec." ("Iran Fuel Imports Nosedive as Sanctions Bite," Reuters, July 26, 2010).

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Following new U.S. sanctions against Iran in July 2010, Tupras is supplying Iran with about half of its gasoline imports: "Iran is depending more on friendly powers in the international arena for fuel supplies after the U.S. passed far-reaching sanctions a week ago that aim to hinder Tehran's fuel imports and deepen its international isolation.

The Islamic Republic is buying around half of its July gasoline imports from Turkey and the rest from Chinese sellers, oil traders said on Thursday, as most other suppliers have stopped selling due to the U.S. sanctions.

Turkish refiner Tupras began supplying gasoline to Iran in June after a hiatus of at least 18 months, trade sources said, just days after Turkey and Brazil brokered a nuclear fuel swap plant with Tehran designed to quell international fears over the Islamic Republic's atomic ambitions."

"Iran would import around 90,000 barrels per day (bpd) of gasoline in July, steady from June, oil traders said. It would take around nine cargoes, four or five of them from Turkey and the rest from Chinese sellers, they said."

"The limited pool of suppliers was driving up the cost of gasoline for Iran and making it harder for the Islamic Republic to buy the quantities it needs, traders said.

"These restrictive measures mean it is getting very serious for Iran," said Mehdi Varzi, a London-based energy consultant. "The oil market is a big market, and they will always find suppliers, but it is getting more difficult and it is costing more."

"Two of the gasoline cargoes coming from Turkey were scheduled to load from Turkish refiner Tupras' Izmit refinery, while two or three were scheduled to load from Tupras' Izmir refinery, sources said. The cargoes would be loaded load onto ships owned by the state energy giant National Iranian Oil Company (NIOC), they added.

A Tupras spokeswoman was not immediately available for comment on Thursday" (Webb, Simon, "Iran relies on friendly powers for fuel supplies," Reuters, July, 8 2010).

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"Turkey buys 10 billion cubic metres of gas annually from Iran, which meets about 30 percent of Turkey's domestic needs. Iran is set to receive its first shipment of gasoline from Turkey in at least 18 months in June, industry sources have said.

"Iran supplied Tupras with 3.2 million tonnes of crude in 2009, down from 7.5 in 2008 and 8.86 in 2007, according to a Tupras investor presentation. That makes Iran Turkey's second-biggest supplier after Russia (5.48m T in 2009, 6.57m T in 2008, 9.06m T in 2007)" (“Turkey's economic relations with the Middle East,” Reuters, June 24 2010).

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As of April 2010, Tupras imports 63 thousand barrels of crude oil per day from Iran. ("Iran’s Crude Oil Buyers in Europe, Asia," Reuters, April 18 2010.)