The National Iranian Drilling Company, a subsidiary of the National Iranian Oil Company, has signed a memorandum of understanding with Dana Energy Company to cooperate in oil and gas development projects.
The MoU was signed by Sepehr Sepehri, NIDC's managing director, and Mohammad Iravani, the CEO of Dana Energy Company, on Sunday based on EPC (engineering, procurement and construction) and EPD (engineering, procurement and drilling) contracts, NIOC's news portal reported.
As per the agreement, Dana will provide NIDC with a range of services, including technical engineering support, and supply drilling and extraction equipment.
According to Sepehri, the move is in line with the Oil Ministry's policy to indigenize oil and gas equipment.
Dana is a leading private oil and gas company active in exploration and production, upstream services and energy trading.
The ministry has taken measures to boost domestic manufacturing of oil equipment to curb capital outflows for imports.
In 2014, a committee was set up by Oil Minister Bijan Namdar Zanganeh to pursue the production of 10 major categories of equipment for the key oil and gas sector, including turbines, pipes and compressors.
Some of the essential devices used in oil and gas exploration/production, including various types of drill bits as well as wellhead and downhole equipment, are being produced by Iranian firms.
According to Reza Khayyamian, the head of the Society of Iranian Petroleum Industries Equipment Manufacturers, localization of a broad set of equipment is high on the agenda.
Efforts are underway to indigenize the technology for producing a variety of equipment, such as control valves, pipes, rotating machines (turbines and compressors), smart pigs used in cleaning pipes, oil and gas measurement tools as well as equipment associated with health and safety.
Sepehri said NIDC welcomes increasing cooperation with domestic private companies to fulfill such a goal.
Another move by the ministry to secure the domestic firms' presence in the sector is the introduction of the new oil and gas contracts known as Iran Petroleum Contract with international energy majors.
According to one of the requirements of the new contracts, whatever equipment that can be manufactured domestically should not be imported by foreign contractors.
Dana Energy Company was among the first group of domestic companies certified last year for undertaking oil and gas projects alongside foreign contractors under IPC.
