30-04-02 Deputy Minister of Oil and Managing Director of the NIOC, Mehdi Mir-Moezi, said that the Algerian oil company expressed interests in production, marketing and managing of liquefied natural gas (LNG) with Iran. Mir-Moezi, who is attending a seminar of officials of 15 national oil companies of oil producing countries in Algeria, expressed hope that a final decision by the Algerian officials will be announced in the near future.
He added that the next year seminar will be held in China. He said that the review of the role of national oil companies as part of the world oil industry is the main focus of the seminar. He further said the seminar includes the review of the oil companies capabilities regarding their financial, technical and management affairs.

The companies also proposed to cede policy making, and monitoring responsibilities to their respective governments, thus enabling them (the companies) to become more competitive with multinational and other private firms, Mir-Moezi stated.
He also criticized the law which currently stipulates for the oil export revenues to be deposited in the government coffers, adding "so far, any increase in oil production other than boosting NIOC's expenses does not raise the financial capabilities of the company."
Mir-Moezi welcomed the recent legislation ratified in the parliament rectifying the shortcomings. He said in the Third Five-Year Development Plan (March 2000-March 2005) all the revenues from selling of oil derivatives, specially in the gas sector will accrue to the NIOC.

Hopefully despite the financial obligation of NIOC, the company 's revenues will climb higher this year, he added. The significant portion of the revenues will consists of the production of South Pars Gas field.
Mir-Moezi alluded to the shipment of first consignment of the LNG from South Pars gas field, adding the revenues of the LNG export will be directed towards repayment of obligations and domestic gas revenues will be accounted as NIOC revenues. He said that NIOC is in the process of signing contact for the South Pars gas field phase 2 and 3.
It is expected that the three other phases will be signed by the end of the March. He said that the gas exploited from these phases will be used in making LNG. Iran exported the first consignment of gas liquids extracted from the early stage of the second and third phases of South Pars gas field. Managing Director of South Pars Oil and Gas Company Assadollah Salehiforouz said that the company exported the 40,000-ton consignment worth $ 8 mm from Assaluyeh port in Bushehr province to the United Arab Emirates (UAE).

The gas liquids amounted to 310,000 barrels, he said. Since coming on stream in February, the 2nd and 3rd phases of South Pars, have yielded 590,000 barrels of gas liquids of which 500,000 barrels are for exports. He said that output of the second and third phases of South Pars will reach 50 mm cfpd gas and 80,000 bpd of gas liquids as well as 400 tons of sulphur by October.
The first phase of South ParsGas field development project designed to yield output worth $ 2 mm every day is expected to come on stream by the end of the current year, Executive director Mohammad Ali Shakarkhab said. Shakarkhab said that 105 km pipeline will also be set up through the sea to export the gas output from South Pars.