World petroleum Congress in Istanbul – oil, OPEC, and technology

World petroleum Congress in Istanbul – oil, OPEC, and technology

ISTANBUL, July 12. /TASS/. More than 2 thousand participants, including more than 50 representatives of line ministries, discussed the prospects of development of oil and gas projects in their countries and tried to interest investors in the 22 World petroleum Congress in Istanbul.

Russia at the summit presented their technologies, not having analogues in the world.

About whether it is a success, and what the plans told the other producing countries, the final review of the TASS correspondent.

OPEC – while no sudden movements

Representatives of the countries-exporters of oil that are involved in the transaction for the reduction of oil production on World petroleum Congress did not make any loud statements about the agreement. The main issues were the possibility of extending the Treaty, its effectiveness and revised production quotas for its sharp rise in Lebanon and Nigeria.

In General, the oil is very positively spoke about the effectiveness of the transactions and future commitments. Russian energy Minister Alexander Novak told reporters that the effect of reduction of oil production will not be blocked by the growth of production USA, Libya, Nigeria and Canada. According to him, only last week the oil reserves in the USA was reduced by 14 million barrels, and the growth in oil demand in the world will steadily increase.

He also said that the situation within OPEC Qatar, which with Saudi Arabia, UAE, Bahrain and Egypt on 5 June broke off diplomatic relations and they were accused of supporting terrorism, will not affect the implementation of the agreement. “He (the Minister of energy of Qatar – approx. ed.) has once again confirmed that Qatar is committed to implementing the commitments they have undertaken”, – said Novak.

On the subject of extending the deal, the oil was pretty careful. The OPEC Secretary General Mohammed Barkindo on the sidelines of the Congress diplomatically said that the parties to the agreement are not thinking of ways to deal and develop a long-term cooperation strategy. Deputy Minister of oil of Iran, Amir Zamaninia said that his country would join the consensus on this issue. Novak said that while early to speak on this subject.

The parties also called for a smooth exit from the transaction. According to Novak, this period should take a few months as otherwise it can lead to a sharp reaction of the market and the fall in oil prices. The same opinion was expressed by the Minister of energy of Kazakhstan Kanat Bozumbayev.

Regarding the growth of production in Libya and Nigeria, which are currently exempt from commitments to reduce production, Barkindo said that the experts of these countries will be invited to participate in the meeting of the technical Committee of OPEC+ in St. Petersburg (July 24). The growth of production will be discussed, to accept any decisions concerning these countries is not planned, said the Minister of energy of Algeria Mustafa Kitoni.

Was also raised the question of participation in the meeting of energy Ministers from Libya and Nigeria. Although informed about their participation according to the newspaper The Wall Street Journal, Barkindo told reporters that they are not yet invited. The head of the energy Ministry, however, noted that the Ministry is not against inviting new members. “We are open for all,” he said.

Rapid Iran

Growth prospects of oil and gas in Iran, and the participation of foreign companies in development of deposits of this country, become one of the most discussed topics of the Congress.

Zamaninia at the beginning of his speech, remarked ironically that his speech will differ from the speeches of his colleagues from other countries, which, in his view, on the same grounds usually result in about the same numbers, raise passing from time to time topics.

The Deputy Minister revealed ambitious plans of Iran on the growth of hydrocarbon production. According to him, the volume of oil extraction by 2021 may increase by 1.4 times, to 5.7 million barrels per day. While on gas the country has even more ambitious plans – grew 1.7 times from the current level of 800 million cubic meters per day, up to 1,365 billion (about 500 billion cubic meters per year). Meanwhile, Iran expects to become one of the largest gas exporters in the world. For comparison – in 2016 Russia exported 179 billion cubic meters of gas extraction in 640,2 billion.

Zamaninia noted that all these plans of Iran to implement only with the participation of foreign companies in their projects. He told reporters that Tehran plans to auction off a number of gas fields: offshore Farzad A, Farzad B, Kish and North Pars, interesting to “Gazprom” and “Rosneft”. But he stressed that Indian companies had “come much further than others.”

As for the Russian oil industry (applications for participation in the tender the Iranian filed “LUKOIL”, “Gazprom Neft”, “Rosneft”, “Tatneft” and “Zarubezhneft”), Iran is ready to allow them to participate, but only after they provide technical, economic and financial conditions of their projects.

In turn, the head of “Tatneft” nail Maganov said that they have already completed a preliminary study of the Geology of two oil fields in Iran – Dehloran and Shadegan, but the terms of the contract have not been discussed. Zarubezhneft, which was also interested in Iranian oil fields, plans this year to complete negotiations and determine the commercial terms of an oil contract with Iran.

Silk energy pathway

Speaking at the Congress, the President of Turkey Recep Erdogan Tayyp compared the role of his country with the crossroads on the way “energy silk road” and recalled that Turkey will build several gas pipelines: the “Turkish stream”, “southern gas corridor” and the TRANS-Anatolian gas pipeline.

He said that the Republic “creates a system of repositories for the long-term solution to the problem of energy supply”, where will be accumulated not less than 20% of the annual amount of gas consumed. Turkey’s energy Minister Berat Albayrak added that Turkey intends to become a leader in gas storage in the region and to reach a volume of 1 billion cubic meters after entering the gas storage facility under lake Tuz.

The Minister also said plans to increase domestic production of oil and gas. “We are increasingly focusareas oil, production in the Mediterranean and in the Black sea region”. According to him, the country is already conducting seismic studies in the Mediterranean basin, Black sea basin.

The key for the gas supply of Turkey project, the Minister called the Turkish stream, which will supply gas under the Black sea from Russia to Turkey and further to Europe. According to the Russian Ministry of energy, Turkey in the near future will determine the point of landfall of the pipeline. In the project is also interested and Bulgaria, whose Prime Minister has noticed that the transit through its territory of gas from Turkish stream will be 10 billion cubic meters.

The Turkish President also raised the issue of development of electric power projects in the country. He estimated the additional generating capacity required Turkey to meet the growing needs of the economy of the country, 50 thousand megawatts. According to him, the nuclear power plant “Akkuyu”, which will build “Rosatom”, the nuclear power plant in Sinop will cover 10% of energy consumption in Turkey.

Novak told reporters that Turkey before the end of 2017, will issue all permits for the construction of NPP “Akkuyu” construction will start in 2018.

Digital economy vs TEK

The impact of technological progress on oil and gas development is not yet completely defined, but may pose a threat: in the opinion of the head of the Ministry of energy, new technologies will be able to drastically transform the oil and gas industry, which is known for its conservatism and immobility. The Minister also for the first time in public speeches evaluated the possible effect of using technologies, big data processing and outlined the risks of falling prices for hydrocarbons.

“Big datŠ° with respect to energy has the ability not only to dramatically reduce the cost of energy, potentially eliminating the extra cost from the manufacturers, but also to have a disruptive effect on production chains, consumer habits,” he said. Among the key directions of technological progress Novak called energy, digital technology and biotechnology, artificial intelligence and robotics, materials science, infrastructure and vehicle conversion.

His interlocutors on the panel session – chief Executive officer, ExxonMobil Darren woods, General Director of Saudi Aramco Amin Nasser, chief Executive officer of Royal Dutch Shell Ben van beurden came to a consensus that the demand for energy in the world will increase, although the structure and geography of this demand will vary greatly. While Novak noticed that by 2040, energy demand will grow by at least 25% but stressed that this will occur with a parallel increase in the share of renewable energy sources.

The Minister rather harshly commented on the preparation of the European Commission mandate on negotiations with Russia on the pipeline “Nord stream-2” and called it “outright sabotage” of the project. In his opinion, this will only contribute to reducing Europe’s energy security.

Russian technology

Energy for the first time abroad was organized by the Russian stand, which the oil and gas companies of Russia presented the samples of their advanced technologies.

At the stand of Transneft presented a model of magnetic ultrasonic inspection pigs moving device a “Flaw”. According to the head of the organization of participation in exhibitions and conferences of “Transneft” Alexander Plekhova, Russian technology is already in demand on the world markets, as it allows to gather information about the existing defects inside the pipe and save the customer on optimizing its repair.

At the same time “Transneft” do not sell equipment itself, and a service for the collection of information and decryption of received data. In particular, the technology actively interested in Mexican companies.

Also on the stand was presented to the domestic technology of laser orbital welding of pipelines. According to General Director of “UTS-Integration” Olga Morozova, this equipment has no analogues in the world and is able to reduce the cost of welding one joint 30% through the use of laser and less bulky equipment. The technology is already certified by Gazprom, and this equipment can be on the market by year-end.

“Total, Shell, representatives of Kuwait, Qatar (was interested in technology at the exhibition – approx. ed.). They have all been here. We received an invitation from Iraq, from the Indian delegation,” – said Morozov.

Earlier, Deputy energy Minister Kirill Molodtsov told the TASS that Russia Congress in Istanbul will be the first coordinated attempt to promote Russian oil and gas technologies at foreign trade fairs. According to him, Russia plans by 2020 to begin the export of Russian oil and gas technologies, and by 2025 the cost of supply will be commensurate with the size of the export of nuclear and military technology. He noted that the priority markets for export of Russian equipment and technologies are Iran and Iraq. In the future, they can be Libya, Vietnam, Cambodia, Laos, China.

About the Congress

World petroleum Congress – one of the largest forums in the oil and gas industry. The Congress, which is held once in three years, were last held in Moscow in IEC “Crocus Expo” in 2014.