Startups Can Help NIOC Reduce Costs by 90%

The revival of abandoned oil and gas wells in Iran by tapping into cutting-edge knowledge of startups can help reduce production costs by 90%, the head of the Oil Industry Technology and Innovation Park said.
“The National Iranian Oil Company must spend at least $10 million on drilling each new well, whereas drawing on knowledge-based firms’ experience, the state-run company can revive each abandoned well at a cost of $1 million,” Mohammad Esmaeil Kefayati was also quoted as saying by IRNA.
The Economic Council has allocated $700 million to be invested in projects to increase crude output level by 200,000 barrels per day from wells whose production have decreased, he added, hoping that startups can be linked to local oil and gas firms so they can help minimize the cost and risk of ventures like applying modern enhanced oil recovery and improved oil recovery techniques that are crucial for increasing production.