Conflict affects Iranian and Israeli energy sites
The military strikes between Iran & Israel have raised concerns about possible damage to oil and gas infrastructure and fields in the region.
Here are some details on these sites, and how they have affected them so far.
SOUTH PARS GLAZ FIELD
Israel attacked an installation in the South Pars offshore field where Iran had partially suspended production on June 14. South Pars is a part of the world's largest gas reserves, which Iran shares jointly with Qatar.
Around 200 km from Qatar, the attack targeted four units in Phase 14 of South Pars. Many of these are joint ventures between international companies, such as ExxonMobil, ConocoPhilips and other U.S. firms.
TEHRAN FUELD DEPOT AND RIFFINING
Iran reported that Israel had struck a fuel depot in Tehran and an oil refinery close to the capital, on June 14. However, authorities claimed the situation was now under control.
HAIFA OIL REFINERY
The Israeli Bazan Group closed its Haifa refinery on 16 June after an Iranian attack damaged its power station. The refinery's crude processing capacity is 197,000 barrels per days (bpd).
Why South PARS Matters
South Pars accounts for around a third the largest natural gas reservoir in the world. Iran shares this reservoir with Qatar, a major gas exporter. Qatar calls their field North Dome.
Most of the gas produced by Tehran is consumed domestically, but some is exported.
According to the Gas Exporting Countries Forum (a grouping nations that export gas), Iran exported around 15.8 billion cubic meters of gas in 2023.
The reservoir is estimated to contain 1,800 trillion cubic foot of gas that can be used to power the U.S. or the world for over 35 years.
IRAN'S OIL
Iran is OPEC’s third-largest oil producer, producing about 3.3 millions bpd crude oil and another 1.3million bpd condensate, which totals around 4.5% of the global supply.
Kpler data showed that exports reached their highest level in 2018 at 1.8 million bpd. This was largely due to strong Chinese demand.
Iran's main production facilities are located in the southwest in Khuzestan Province, and Bushehr for South Pars gas and condensate.
Kharg Island is the main port of export for 90% of the crude oil.
After President Donald Trump pulled out of a nuclear agreement, the U.S. tightened its sanctions against Iran in 2018.
Analysts say that sanctions were not enforced as strictly and Iran was able to evade them.
China has not recognised the sanctions imposed against Tehran and Iran, so some Chinese refiners are now on the U.S. Treasury sanctions list.
Analysts believe that Saudi Arabia and the other OPEC countries could compensate any decrease in Iranian production by pumping more.
(source: Reuters)
