More than 500 knowledge-based firms are active in oil, gas and petrochemical sectors, of which 50 are capable of competing with foreign brands and their goods and technical services are sold in international markets, the head of the Oil Industry Technology and Innovation Park said.
“There are startups whose products, including catalysts, pieces and parts are sent to Russia and other neighboring states, but due to sanctions-related concerns, names cannot be revealed,” Mohammad Esmaeil Kefayati was also quoted as saying by IRNA.
Thanks to local engineers, Iran is 80% self-sufficient in manufacturing parts and equipment needed by the oil and gas industries, and plans have been made to meet the rest, he added.
The official said things have changed and outdated oil production methods do not work anymore, which explains why startups should be given a chance to play a bigger role in the key industry.
Taking advantage of local firms’ prowess can also help reduce costs in oil and gas sector, he added, stressing that 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.
There are more than 5,500 oil and gas wells in 400 oil and gas fields of the country, some of which are in the late stage of development. This stage is associated with a number of challenges during the production and operation of reservoir fluids. The fluctuation in temperature and pressure and assessment of oil production rates are typical at this stage.
Kefayati noted that drawing on the capabilities of knowledge-based companies, NIOC will be able to increase the annual production capacity to more than 80 million barrels of oil.
Equipment Manufacturers
According to Ehsan Saqafi, the head of the Association of Iranian Petroleum Industries Equipment Manufacturers, 800 plus companies are members of the association, which meet 80% of the needs of the petroleum industry.
Iran achieved self-reliance in the field of equipment manufacturing after domestic companies teamed up with startups.
“All stages of the design, engineering, construction and installation are undertaken by local experts and engineers, which have been achieved through the efforts of the research and development departments in Iranian firms,” he said.
In recent years, 12,000 items have been indigenized in the oil-rich regions of southern Iran, some of which are strategic items made in collaboration with knowledge-based companies.
The Association of Iranian Petroleum Industry Equipment Manufacturers is a private and non-profit organization founded in 2000.
Most of the Iran’s petroleum equipment are now designed, engineered and manufactured locally. These include items such as gas and steam turbines, process pumps, air and gas compressors, industrial valves, pressure vessels, heat exchangers, tanks, air coolers, towers, boilers, pipes, fittings, catalysts, drilling bits, wellhead equipment, drilling rig, control and dispatching systems, instruments, switchgears, high voltage cables and accessories.
Currently, Iran ranks first in the Middle East in the production of oil industry equipment despite the US sanctions.
In May 2018, the US withdrew from the Joint Comprehensive Plan of Action signed between Iran and P5+1 in July 2015, and reimposed unilateral sanctions on Iran.
Still in place, the draconian sanctions have mainly targeted Iranian oil and banking sectors. However, despite all the difficulties caused by the sanctions, the oil industry has progressed in the past four years with the help of local experts.
The National Iranian Gas Company has planned to indigenize 29 key equipment in the gas industry by 2024 and signed several contracts worth $23 million with domestic knowledge-based companies.
Saqafi noted that within three years, the country's gas industry will stop importing these strategic items from European countries such as France and Germany.
While the locally-made items will have the same quality as their foreign counterparts and accord with national and international standards, their production cost will be less than half that of foreign ones.
NIGC has already indigenized several parts and equipment used in the gas industry and reduced the import of equipment worth $300 million per year.
The National Iranian Drilling Company is also collaborating with domestic manufacturers to indigenize equipment and parts used in drilling projects.
