NPC posted a 42.5% increase in its exports to $382m in the first quarter of its financial year to 20 June 2004 from $268.5m for the same period last year. Volume of exports reached 1.28m tonnes for Q1. In the corresponding period last year, sales were 1.06m tonnes. Q1 output reached 3.6m tonnes up by 7% over the results in the same period last year.








NPC and China's Zhuhai Zhen Rong Company (ZHZR) signed a memorandum of understanding (MoU) on the establishment of joint venture chemical complexes in Iran and China. The document was signed on July 25, 2004 at NPC headquarters in Tehran. NPC and ZHZR have agreed that, after the preliminary work and feasibility studies, it is commercially viable and technically mature by using natural gas as feedstock to produce methanol and chemical fertilizer in Iran, as well as using Iranian condensate as feedstock for production of aromatics in China. NPC and ZHZR said in their MoU that they share the idea to investigate the possibilities for joint investments as well as trading and technical co-operation in petrochemical projects in Iran and in China. The proposed joint venture projects to start with include: a methanol project with an initial capacity of 1.65m tonnes per year in Iran using South Pars natural gas as feedstock; ammonia & urea project using natural gas as feedstock to produce ammonia and urea based on gas feedstock from Iran's South Pars gas field. The production capacity of this complex is preliminarily set as 1m tonnes per year. They also agreed to explore the viability of using propane produced by NPC as feedstock to produce Polypropylene in Iran. They have also decided to investigate the feasibility of NPC's participation with ZHZR in the construction of a world scale BTX complex using Iranian condensate as feedstock for production of benzene and paralxylene and other petrochemicals in Iran or China whichever prove to be more economical. A joint leading committee will choose the above mentioned project(s) and will lead and coordinate the exchange of information for feasibility study work on the chosen project(s).




Iranian President Seyyed Mohammad Khatami and Petroleum Minister Bijan Namdar Zanganeh visited NPC's booth at the Ninth International Oil, Gas, and Petrochemical Exhibition which was held on July 6-9, 2004 in Tehran. During the visit, President Khatami and Minister Zanganeh received firsthand information on NPC's projects and briefing on their overall progress.



NPC has long realized the need for injecting skills and professionalism into the Fire Service personnel at various petrochemical complexes in the country. Looking into the future and with the objective of building a knowledgeable, skilled and strong Fire Brigade at par with the international standards, NPC has invited the Fire Service College (FSC) of the United Kingdom to give specialized Fire Fighting and Rescue Training to its personnel. After several reviews and interactions between NPC and FSC, the course duration and the contents were finalized, tailor-made to the specific needs of petrochemical industries in Iran. In order to derive maximum benefit from the training and to enhance interaction between the trainees and the FSC instructors, the first batch of 20 fire fighting officers were given an intensive English Language training of three weeks at Mahshahr. The first batch of Fire Fighting and Rescue Training Course started off at the Bandar Imam Petrochemical Co. on 10 July 2004. This five-week training course is expected to wrap up on 11 August 2004. In the first batch, 20 young and enthusiastic Fire Officers, nominated from different NPC petrochemical complexes are undergoing vigorous professional training.

NPC says it is shifting to engineering, procurement & construction (EPC) and engineering, procurement, construction and commissioning (EPCC) contracts to implement its new contracts. The decision is taken in a bid to speed up the implementation work on the projects.
Prior to NPC's new policy, foreign contractors could only participate in the engineering and procurement (EP) portion of projects while local engineering companies would carry out the construction work.


NPC made known its new policy in a seminar attended by representatives of over 20 foreign companies. In line with this policy, NPC concluded EPCC contracts for two of its most recent contracts, ie, Ilam's 300,000 tonne/year hdPE plant and Kharg's 2nd methanol project which will have a capacity of 660,000 tonne/year. At the seminar, NPC's director of projects, Mr. Seyyed Hassan Sadat told the participants about the new approach and a host of other related issues including contract structures, contract price categories, modes of local and foreign participation, tax regulation, financing schemes, price policy, custom clearance and work permits. Meanwhile, NPC's director of planning and development, Mr. Hassan Peyvandi Sani provided fresh and detailed information on the projects which NPC has drawn up under its 4th five-year development plan.