Banned Oil Contractors Can Return

Banned Oil Contractors Can Return
Banned Oil Contractors Can Return

Several oil contractors barred in the past have been called by the oil ministry to resume cooperation, the deputy for engineering affairs at the oil ministry said, IRNA reported Saturday.

"To help accelerate the industry's growth, many contractors previously barred from oil projects during the previous government have been told to return," Seyyed Emad Hosseini said. He did not say whether or not this would include foreign contractors.

Domestic contractors and producers will be able to bid alongside foreign companies "on a level playing field," he added. Among the approaches to combat the economic consequences of sanctions, the oil industry is keen to implement the 'Economy of Resistance' policy, the official noted. The policy was proposed by the Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei, to counter the sanctions, promote domestic growth and reduce consumption. The US imposed tough sanctions on Iran to curb the country's nuclear program, which it claims is geared to military use. Iran insists it is for peaceful purposes. Iran and P5+1 have been holding marathon talks over the past year to thrash out a mutually acceptable "comprehensive deal."

Salehi said, "The ministry aims to strengthen the private sector's role in major oil policies. However, that does not mean it will take control of the ministry."

Additionally, ten types of major oil equipment and machinery are manufactured by domestic companies.

A committee to pursue production of important oil equipment by domestic manufacturers was established last October by Oil Minister Bijan Namdar Zanganeh.  Production of three major pieces of equipment subsequently began inside the country, including line hangers, subsurface safety valves (SSSV) and mono bores; three essential parts required for oil extraction.