Cheap Chinese Equipment Hurt Drilling Industry

Cheap Chinese Equipment Hurt Drilling IndustryCheap Chinese Equipment Hurt Drilling Industry

Chinese drilling equipments are almost 80 percent cheaper than their domestic equivalents, deputy director of the National Iranian Drilling Company (NIDC) said, Tasnim news agency reported Friday.

"The huge price difference between Iranian and Chinese drilling equipment is among the issues being raised by domestic manufacturers," Mohammad Reza Takaidi said.

"The government must increase its support for domestic companies," he insisted.  "By offering loans and tax reliefs, the government can help manufacturers boost production."

The private sector, alongside the government, can partly cover the needs of the oil and drilling industries, according to Takaidi.  He pointed to manufacturers in Khuzestan Province in southwest Iran as being "competent and successful" within the drilling equipment industry.

Ten types of major oil equipment and machinery are already manufactured by domestic companies.

A committee that will oversee the development of 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 drilling and extraction operations.