MP Says Indigenizing Oil Equipment Crucial

MP Says Indigenizing  Oil Equipment Crucial MP Says Indigenizing  Oil Equipment Crucial

Gholam Mohammad Zarie a member of the Majlis Mines and Industries Committee said Tuesday, "The oil industry's reliance on foreign powers is among the major challenges with which the oil ministry is grappling. That is why self-reliance in manufacturing oil machinery and equipment is high on the priority list.

"In spite of the fact that utilizing foreign equipment helps increase energy production, it creates jobs in other countries not in Iran. Investing in domestic industries and goods creates much-needed jobs and also boosts oil and gas production," Shana news agency quoted him as saying.

Elaborating on the details of the joint session with the oil minister regarding indigenization, the lawmaker added," The oil ministry has taken effective steps in identifying equipment some of which has already been put out to tender, yet there are more on the list."

Pointing to the production of drilling augers domestically, Mahmoud Tabrizi a board member of the Oil Equipment Manufacturers' Association announced," The augers used to be made by Baker Hughes, one of the world's largest oilfield services companies. It operates in over 90 countries, providing the oil and gas industry with products and services for drilling, formation evaluation, completion, production and reservoir consulting.

"However, due to trade sanctions the American company refused to supply Iran with advanced drilling equipment and that in fact turned out to be such a blessing in disguise as domestic companies indigenized them successfully," ILNA quoted him as saying.

Domestically-made augers have been tested in the southern oil-rich regions at a depth of 3000 meters. Manufacturing such equipment in Iran may not be economically viable for now, but in the long run "we will not need middlemen and sanction busters to import them at astronomical prices."

Highlighting the renovation of oil industry turbines, Ailreza Darvish another board member in the association said ten million euros has been invested for this purpose by the South Pars Gas Complex, National Iranian Gas Co. and Iranian Central Oil Fields Co.