10 Contracts Signed
Domestic manufacturing and commercialization of research are so important that the number of advisory services centers in petrostates is increasing. Domestic manufacturing and commercialization have become a major pillar of technological innovation. In Iran, by relying on academic and scientific research related to the petroleum industry, contracts have been signed with domestic companies for the manufacturing of some strategic commodities like casings and tubing needed in the development of oil and gas fields.
Recently the Oil Industries Engineering and Construction Company (OIEC) and Luleh Gostar of Esfarayen (LGE) signed an agreement to order tubing and casings for the development of Ramshir and Mansour fields. Addressing the ceremony, Reza Dehqan, deputy CEO of National Iranian Oil Company for development and engineering, said: “This agreement indicates domestic capabilities under the present circumstances, and shows that the wheel of industry is still spinning and we can go ahead under any conditions.”
He touched on the projects which were to come online under the Iran Petroleum Contract (IPC), saying: “From a stage onward we concluded that we should no longer wait for agreements. That is why we started projects in parallel based on the new oil contract model. Now that we are faced with sanctions, the parallel agreements are still in effect.”
Twenty-three packages for enhancing oil production capacity, valued at $6.2 billion, were defined by NIOC for the purpose of job creation, creating space for Iranian contractors and manufacturers and preserving the production of about 280,000 b/d of oil. Meantime, contracts were signed with domestic companies, in which domestic manufacturing is highlighted. Import bans were slapped on 84 items of foreign commodities that would be manufactured domestically. NIOC also identified 15 items of widely consumed commodities. NIOC officials said about 40% of the $6.2 billion would be earmarked for domestic supply of commodities.
Dehqan said 10 agreements had been signed, while 10 more would be signed in coming months.
“OIEC runs two important fields subject to these agreements and I hope it would increase output by 70,000 b/d as envisaged,” he said.
Oil production preservation and enhancement in Iranian oil fields is envisaged in 23 packages with $6 billion investment over three years. This national project, whose objective is to engage Iranian companies and to create jobs, includes 23 projects, including 29 onshore and 4 offshore ones.
With an investment of about $220 million, these projects will be implemented in seven oil-rich provinces (Khuzestan, Bushehr, Fars, Hormuzgan, Kermanshah, Ilam and Kohguiluyeh Boyer Ahmad). With their implementation, the country’s crude oil production capacity will increase by 300,000 b/d, earning the country $14 million in revenue.