TBY talks to Mehdi Mirmoezi, CEO of Pasargad Energy Development Company (PEDC), on becoming the point of reference for major oil players, completing a major pipeline to Iraq, and capitalizing on strategic partnerships across the region.

Mehdi Mirmoezi
Mehdi Mirmoezi was born in 1954 in Tehran and received his master’s degree in industrial engineering from Tehran Polytechnic. He has been CEO of PEDC since 2008. Before assuming his current position, he held several leading roles in Iran since 1979, including Deputy of Production Affairs in the Planning and Budget Organization (PBO), Managing Director of the Bandar Imam Petrochemical Complex, Petrochemical Industry Investment Company, and NIOC, and Chairman of the Board of Directors at Petropars Co. Currently, he is also Chairman of the Board of Directors at the Iranian Petroleum and Energy Club.

How will your new vision determine your strategy for the upcoming years?

We recently decided to adopt a new vision, which is to be a leading sustainable energy and petrochemical player offering diversified and high-quality products and services in Iran and the region, and be recognized as the strategic partner of choice in the energy field in Iran. This vision is based on three pillars. One is to create value, which means finding the right investment opportunities. The second is to be a diversified business with a diversified portfolio of activities. The third is to build strategic partnerships with global players, building new competitive advantages and value propositions for future project execution and future business activities. We just started to implement this new strategy and plan to reach the goals that have been specified in this regard.

How do you create value for your shareholders through your activities and subsidiaries?

We have broken down the energy business into four strategic business units covering the entire value chain, namely upstream, midstream, downstream, and power and utilities. Iran, like other countries, will gradually benefit more from added value in the energy sector. Our strategy has been to be present throughout the energy value chain, with help from the capabilities and expertise of our directors. We are well established in different parts of the value chain, such as drilling and well engineering services. Moreover, we are a qualified Iranian E&P company that is an excellent partner for major oil companies that want to develop oil and gas fields in Iran. International oil companies must have a local partner to engage in E&P activities in Iran. We want to be the partner of choice for major oil companies. It is important for partners to know which companies are fully private. Most of the companies are prequalified by the Ministry of Petroleum, or are semi state-owned companies. There are only a few companies that are fully private, and PEDC is one of them. Another advantage is that we have the backing of Pasargad Financial Group.

How can PEDC, as a trader in energy products, benefit from Iran's strategic location?

PEDC transports oil products between neighboring countries. We import some oil products from the UAE and Iraq, and export them to Armenia and Afghanistan. Also, we import products from Turkmenistan and export them to Iraq. We started this business to benefit from our geopolitical situation. PEDC possesses three power plants, located near the borders with Turkey, Iraq, and Afghanistan. We are seeking permission to export power from our power plants and directly export it to neighboring countries. In a few years, there will be opportunities to get involved in the trade of electricity, and we can benefit from our geopolitical situation.

What is your outlook for the year ahead?

After the reelection of President Rouhani, Iran will continue to develop positive relationships with the world. This will create a more supportive business environment in which we can conduct business. We are going to complete our build-operate-transfer (BOT) project for laying a gas pipeline to export gas to Iraq. We have a project worth more than USD2 billion with the National Iranian Gas Company (NIGC) to build a 600,000km pipeline with five compressor stations for exporting gas to two Iraqi cities: Basra and Baghdad. We are going to complete this project by the end of next year, which will create more value and credibility for us. We aim to sign partnership contracts in the next year with major international oil companies to develop Iranian oil fields. In addition, we would like to enter into partnerships in our petrochemical and refining projects, especially in Siraf, where we have eight plants that each produce 60,000bpd of condensate.