Crude Extraction of Iran Up by 70% in 2.5 Years: NIOC

Iran’s crude oil production increased by 70% in about 2.5 years as the 13th Administration took office in August 2021, announced Mohsen Khojasteh-Mehr, the managing director of National Iranian Oil Company (NIOC) on Thursday.

Speaking in a press conference on the sidelines of the 28th Iran International Oil, Gas, ‎Refining and ‎Petrochemical Exhibition (Iran Oil Show 2024), he said during the current government, a fourfold rise was set in the number of contracts signed on oil investment.

Emphasizing that the upstream sector of the oil industry has the task of generating income, the deputy petroleum minister added that Iran earned a sum of US$35 billion from the exports of oil and gas condensates last year (March 2023-24).

Elsewhere in his remarks he said that a pressure boosting project, which started last Iranian year, requires an investment of US$20 billion as its implementation will fetch US$900 billion in income and 90 Tscf of gas for the country. Eligible companies that we have chosen for the project should work in the field of geophysical and geotechnical studies, turbo-compressor manufacturing, and pressure boosting platforms.

The official noted that a few days ago, his company signed a contract with petrochemical companies for 20 gas tanks worth US$7 billion, explaining that NIOC cooperates with petrochemical complexes and refineries, and supports them in providing feed and export issues.

Inauguration of 30 Projects

This year, 30 projects worth US$8 billion will be operational, and the operation of 19 projects worth US$11.5 billion will also begin by 20 March 2025, the official announced.

Last year, the NIOC signed a US$13-billion contract for the development of oilfields, of which US$12.5 billion pertained to two joint fields, Khojasteh-Mehr stated, adding that Iran has 400 oil and gas reservoirs, as the country’s total oil and gas reserves are equivalent to 340 billion barrels of crude oil.

A total of 700 low-production wells have been handed over to new technology-based firms (NTBFs) and technological companies because the private sector can help the entire upstream chain of the oil industry.

He continued some US$6.5 billion was invested in oil industry’s upstream sector on average per year under the current administration. He added that US$15-million contracts were inked in oil industry’s upstream sector under Iran’s 13 administration in 2.5 years and US$6.6 billion of investments were made on average per annum.

Economic growth are driven by main factors, he said, adding Iran’s economic growth is projected to reach 8% in which oil and gas industry plays a determining role. “Oil and gas industry had 50% share in Iran’s economic growth in last Iranian calendar year (19 March 2024). The data released by the Central Bank of Iran and the Statistical Center of Iran indicated the effective role of oil and gas industry in the country’s gross domestic product (GDP),” he noted.

On manufacturing strategic equipment, he said 80% of the equipment needed in upstream and downstream sectors are locally made, and US$350 million and IRR 30 trillion (US$49.2 million) have been allocated to underway projects to manufacture equipment for the first time and various studies being conducted on discoveries, production and exploitation.

We are looking for digitalization of oil and gas fields through using artificial intelligence and 140 proposals have already been received in this regard, said Khojasteh-Mehr, who is also Iran’s Deputy Petroleum Minister. - Shana