The National Iranian Oil Company plans to sign a $7.5-billion contract on the development of joint fields with a consortium of domestic companies, managing director of NIOC said.
“The imminent contract is aimed at taking optimal advantage of the capabilities of domestic companies for developing the second phase of North and South Azadegan oilfields,” Mohsen Khojastehmehr was also quoted as saying by the Oil Ministry’s news agency Shana.
“The contract will be signed in a couple of months with a consortium that is composed of Iranian exploration and production companies,” he added.
He was speaking on the sidelines of the 26th International Oil, Gas, Refining and Petrochemical Exhibition, also known as Iran Oil Show 2022.
Regarding this year’s exhibit, he said more than 100 knowledge-based companies have participated in the international event, along with 1,100 local and foreign firms.
According to Khojastehmehr, NIOC is seeking to sell the highest volume of oil and the country is ready to double its oil exports.
Elaborating on the investment in the upstream sector, he said about $160 billion have been agreed to be allocated to it, of which $90 billion will go to the oil industry and $70 billion to the gas industry.
International Markets
Also speaking at the exhibit, Mohammad Sadeq Jokar, the head of the Institute for International Energy Studies, emphasized the need to find new markets in different countries, saying reliance on domestic capabilities can help make sanctions ineffective.
“A strategic market is where our export volume accounts for a significant percentage of total energy imports,” he said.
“Studies show that gas consumption growth in Europe has been less than 0.5% in the last 10 years and will also experience a declining trend in the next 10 years.”
Jokar noted that maintaining the Iraqi market share and entering the Pakistani market are still possible despite sanctions, as Pakistan’s market has already been explored and Iran’s rivals have been identified.
Regarding Iran’s global energy model, the official said the model was first designed and completed by the Institute for International Energy Studies.
“According to this model, Iran will have an outlook for demand, supply and price growth in various energy fields, similar to the one used by the Energy Information Administration, the Organization of the Petroleum Exporting Countries and such organizations,” he said.
“This model focuses on oil in its first version and has been able to forecast different regional and global oil supply-demand scenarios. It is important as it can help policymakers and decision-makers in conducting oil exports, selecting target markets, estimating oil demand and assessing the price outlook.”
On cooperation with Latin American countries, Jokar said, “The sale of raw materials and the export of technical and engineering services, as well as energy, to the Latin American market can be put on the agenda, for which the administration is trying to interact fairly and logically with private sector players.”
The largest annual gathering in Iran's petroleum industry, Iran Oil Show 2022, was held on May 13-16 at Tehran’s Permanent Fairground and Iranian exhibitors showcased products and services in a wide range of fields, including technical and engineering services, oil, gas and petrochemicals, industrial machinery and knowledge-based production.
Iran has achieved self-sufficiency in manufacturing various types of equipment and machineries used in the oil and gas sectors.
Ten types of major oil equipment and machinery are manufactured by domestic companies, including line hangers, subsurface safety valves and mono bores, which are essential parts required in drilling and extraction operations.
Domestic producers are now capable of manufacturing 70% of the equipment and only 30% of the industry’s spare parts and equipment are imported.
