In the Pipeline , Business India, Feb 03, 2002

The Annotated Bibliography of the

National Iranian Oil Corporation

Chris Bishop

Tres Davis

Matt Horn

GOV 365

C. Henry

September 24, 2002

Overview of the Administration of the NIOC

-History of the NIOC

This site gives a history of the NIOC. The history starts with the first discovery of oil in Iran in 1908 and takes the reader through the Iranian revolution.

-Members of the Boards

Here you will find the names and photos of the members of the Board of the NIOC and its subsidiaries.

-The Iranian Oil Ministry

The NIOC works with the Iranian Oil Ministry to help shape the oil policies of Iran.

NIOC and India

-Anonymous. “In the Pipeline", Business India, Feb 03, 2002. Source: Business Source Premier.

This article explains the joint memorandum signed by GAIL (Gas Authority of India Limited) and the NIOC allowing each of the companies to set up facilities in both Iran and India. This article also goes into construction and preparation for the Indo-Iran gas pipeline that is to be set up through Oman. Both countries are expanding their gas and petroleum facilities in hope of coming into a partnership.

NIOC and the Homa Field

-Abraham, Kurt S. "Arabic Producers Rumored to be Punishing Gore."World Oil, September 2000, Vol. 221, Issue 9.

In this article, the NIOC said it discovered a new, onshore, gas field near the Persian GulfCoast. Known as Homa Field, it is located in a mountainous region in the south of the Fars province. The reserves are estimated at 6.7 Tcf of sweet gas and 82 million bbl of condensate. Homa field is near Tabnak, the largest Iranian onshore field, and the two fields will work in tandem to help develop each other.

NIOC and Shell

-Schmidt, Victor. "Lasmo, Shell, NIOC Survey Iran Sector",Offshore Publication. Mar '99, Vol. 59, Issue 3, pg, 28

Lasmo, Shell and the NIOC will carry out a 19 million dollar exploration project in the Iranian sector of the Caspian sea. Both geophysical and geological studies will be conducted. After completion the partners will have preferential rights to select up to four blocks for development.

-Hashemi, Morteza. “NIOC’s Contract with Royal Dutch/Shell Company: Development of Soroush and Norwuz Oil Fields.” Outlooks and Analysis; Magazine of the Institute for Political and International Studies Monthly. March 2000, Vol. 13, No. 135 p. 9-14

The NIOC and Shell have entered into a major contract that will be a major undertaking by both companies. Experts mentioned in the article point out that although working with the NIOC, and more particularly the Iranian government, can be difficult and expensive, the contract with Shell should be profitable as well as stabilizing. The US is exerting pressure on companies like Shell to avoid deals such as these with Iran, but it is apparent that big, powerful companies like Shell can ignore these pressures.

NIOC and Conoco

-Tanner, James. "DuPont Unit, Iranian Concern Sign Oil Pact",. Wall Street Journal-Eastern Edition. 3/7/95, Vol. 225, Issue 45, pg. A4.

Conoco, Inc, a subsidiary of DuPont Co., to develop oil fields in Iran in accord with the NIOC.

NIOC and the Persian Gulf War

-Anonymous. "The Way We Were". Economist. 5/11/91. Vol. 319, Issue 7706, pg. 69.

This article talks discusses the hard times Iran fell on due to the US/Iraq war and the decline ofOPEC production in the early '90's. Thus the NIOC approved a 5.8 billion dollar foreign-exchange budget to step up the countries oil-production capacity. The NIOC wanted 2 million dollars for the project, but unless they receive western help, it looks more like 5 million dollars.

Geography of Iranian Oil

-O’Dell, Peter R. Praeger, Fredrick A.An Economic Geography of the Middle East p.19

The Middle East as a whole is the largest producer of oil. Upuntil 1946,Iran was the largest producer, but this was changed because of nationalization of the industry and the turmoil within the country thatlasted until 1951. The national Iranian oil company ismade up of a consortium of oil companies that produceoil and explore for oil on behalf of the NICO. It is through this consortium that Iran hopes to fully realize its national potential in regards to oil production.

Iran and Diplomacy

-Fatemi, Nasrollah. “Oil Diplomacy, Powderkeg in Iran.” Whittier Books Inc. New York 1954. p. 344-345

The Iranian government would continue to sell oil to former customers. The Brits were dissatisfied with the arrangement and sought arbitration. Britain took the case to the then newly formed international court of justice.

-Mossaddegh, Dr.. Reply to PresidentTruman, IranianEmbassy in Washington D.C.Embassy of Iran newsreleased April 3, 1951

This is a political letter that triedto stop any fears that may have been present in the United States about the nationalization of Iranian oil and the possible disruption of oil supplies.The ambassador tries to describe the wrong doing of the Anglo Persian oil company. Theambassador also elaborates on why this nationalization was legal within both Iranian and international law. Mossaddegh assures Truman that the NIOC will still work with oil companies that already have a vested interest in Iranian oil.

Iran During WWI and WWII

-O’Connor, Harvey.The Empire of Oil. Monthly Review Press 1955 p324-342

This chapter discusses the problems that American companies had with entering into the Iranian oil markets before and after WWI. There were problems with Iranian ministers who sided with the Nazis during WWII. The chapter also details a little aboutthe financial losses of the Anglo -PersianOil Company. It also details how the NIOC held outfor the best deal with the American big five oilproducers on revenues.

NIOC and Nationalization

-Leeman, Wayne A. “The Price of Middle East Oil: An Essay in Political Economy.” CornellUniversity Press. Ithaca, New York. 1962. p.213-218

Leeman argues that it is the goal of all state in the Middle East to nationalize their oil industries. Leeman says the most educated people in underdeveloped areas of the world have socialist tendencies. The benefits of the nationalization of oil are limited according to Leeman however, and often times when nationalization occurs it can have detrimental effects of the efficiency of oil production.

-Lenczowski, George.Oil and the state in the Middle East.CornellUniversity Press 1960, p.64, 90-112

Contained in this book is the document that spelled out theagreement for the consortium of oil companies in Iran to form the NIOC. Pages 90 -112 discusses the laws that allow for nationalizationand how companies and countries use them, it alsowrites about legislative safeguards. There is also asmall section about how companies cannot depend on themilitary of their home lands to ensure their safety.

-Movahhed, M.A. “A Brief Look at the Iranian Legislation Effecting its Gas Industry.” Eghtessad-e Energy[Energy Economics] Spring 1997, No. 2 & 3, Vol. 9 p. 11-12

Since the Nationalization of the Iranian oil industry in 1951, the country has struggled to define what role the government will play in the oil industry. The NIOC must struggle to meet the wishes and desires of the government while at the same do doing effective business with outside companies. This relationship can get rocky at times and interpretation of the constitution by government officials can vary greatly.

-Mikesell, Raymond F.; Bartsch, William H.; Behrman, Jank N.; Church, Phillip E.; Edwards, Gertude G.; Gomez, Henry; Harris, William G.; Mamalakis, Markos; Wells, Donald A.; Wionczek, Miguel S.; Zinser. James E. Foreign Investment in the Petroleum and Mineral Industries- Case Studies of Investor- Host Country Relations. Published for “The Resources for the Future” by the John Hopkins press 1971. pg238-240

Gives a brief overview of the history of the oil industry in Iran. The history starts with the discovery of the first well and traces the history of the NIOC and its gradual maturation into a major player in the international oil industry. This exhaustive history covers not only the development of the oil industry in Iran, but there are many references to other countries and their petroleum development.

-Shwardan, Benjamin. The Middle East, Oil and the Great Powers. Council for Middle Eastern Affairs Press. New York. 1959. p. 113-116

In 1951 the Iranian oil industry was nationalized. The US acted as an intermediary in many ways between Iran and Great Britain during this process. Great Britain had a vested stake in Iranian Oil through the Anglo-Iranian Oil Company.

-Stocking, GeorgeW.Middle East Oil- a Study in Political and Economic Controversy. Vanderbilt press, 1970. p 74-86

This is a selection about various issues that lead up to formation of theconsortium and the history of the problems that have plagued the counties oil industry.

NIOC and Great Britain

-Ghosh, Sunil. “The Anglo-Iranian Oil Dispute.” Firma Mukhopadhyay. Calcutta, India. 1960. p. 81-84

Britain laid claim to Iranian Oil after Iran announced plans of nationalization in 1951. According to Britain the oil of Iran would be accessible until 1993, marking the end of their previously signed agreement. The Iranian Premier said that he was interested in maintaining a good working relationship with the oil companies already in Iran. The Iranian government argues that the right to nationalize the oil industry was based on the right of the sovereignty of nations.

NIOC and Development of Oil Industry

-Fanning, Leonard M. “Foreign Oil and the Free World.” McGraw-Hill Book Company, Inc. New York. 1955 p. 299

In addition of producing oil the NIOC had many social obligations, including schools and hospitals that are owned and operated by subsidiaries of the NIOC. With the aid of President Truman, Iran and Great Britain came to an agreement about the nationalization of Iranian oil. Although in the originals laws of nationalization passed by the Iranian parliament not stipulation was made for any king of reparations for the losses suffered by the British.

-O’Connor, Harvey. “World Crisis in Oil.” Monthly Review Press. New York. 1962. p. 294-300

After the nationalization of Iranian Oil, the NIOC needed some time to develop its oil production business. There was not a great deal of expertise in the oil industry among Iranian nationals so arrangements that allowed foreigners to still work in the oil industry in Iran worked to help Iran in the long term. In 1956 an oil gusher spewed an excess of 5 million barrels of oil, of which about a third was recovered.

-Anonymous, “New District Open to Concession Bids” The Petroleum Press Service July, 1959. Published by the Middle East Research and Publishing Center. Vol. II. No. 35

Shortly after Iran had nationalized its oil the NIOC began to look bids to help stimulate its oil exploration. The government at this point is diverting 50% of the NIOC’s revenues to general budget purposes.

-Anonymous. “Soroosh Onstream with Early Production Facilities” Safan. Published January 17, 2002.

An offshore oil well is being developed by the NIOC but until a permanent facility can be constructed a temporary one has been commissioned that will be built by Expro Swire Production and BP. Iran is quickly moving to increase its ability to drill for maritime oil.

NIOC and Korea

-Dareni, Ali Akbar. “Iran, South Korea in $1.6B Gas Deal” The Associated Press: September 15, 2002.

Iran and South Korea have entered into a very large gas deal. The NIOC along with LG of Korea will develop a huge gas field in southern Iran. What makes this story important is that South Korea entered this deal despite the US call for an embargo on Iranian oil due to its alleged sponsorship of terrorism, and also Bush’s claim of Iran being a member of an “axis of evil” along with North Korea.

NIOC and Statoil

-Asland, Rangar. “Carrying Out Field Studies in Iran” Statoil. Published January 16, 2002.

NIOC begins an agreement with Statoil to help increase efficiency in production. The Iranian government enters the contract because it is very interested in increasing its oil production.

NIOC Contracts

-Kerr, Simeon. “Iran Delays Award of Bangestan Oil Field Contract to December” Dow Jones Newswires

The NIOC has wanted to contract out several of its oil fields but in order to do this it must first get the approval of the Iranian parliament. It seems that internal pressure on the government has made it very difficult for any decision to be made about such matters and the bidders, including BP and Shell, have been waiting more than a year to hear a response on their bids.

Iran and Turkey

-Atalay, Selim. “Turkish Tupras to Buy 4.5 Mln Tons of Crude from Iran’s NIOC” Dow Jones Newswire Published August 1, 2002.

Tupras, a Turkish refiner, has signed a contract to buy 4.5 million metric tons of crude oil form the NIOC. In the agreement Tupras also be allowed to meet Iran’s unleaded gasoline demands although the details of this agreement have not been made public.

Iran and Malaysia

-Anonymous, “Iran, Malaysia to Expand Oil Industry Cooperation” Dow Jones Newswire, Published August 1, 2002.

The NIOC and Malaysia have been working on a strong working relationship with Malaysia. Iran imports a good deal of unleaded gasoline from Malaysia and the latter receives a large portion of its methanol from Iran. A visit to Malaysia helped solidify the deal and marked the continuation of a ten year long relationship between the two countries.