Iran’s Oil Ministry has banned the import of 84 oil equipment manufactured to support domestic parts makers, a ministry official said.
Parviz Sangin added that the equipment, including wellhead facilities, desalination equipment, anti-corrosion materials, sulfur recovery catalysts and wellhead control panel, can be sufficiently manufactured by Iranian companies with desirable quality, ILNA reported.
“Contractors are not allowed to buy foreign equipment included in the 84-item list even from domestic providers,” he said.
The official stressed that the ministry expects a minimum of 80% use of domestic equipment in EPC (engineering, procurement and construction) plans aimed at sustaining and raising petroleum production.
Sangin noted that previous plans such as the indigenization of 10 groups of oil equipment indicate the ministry’s emphasis on the use of domestic products, which is now more important due to the looming US sanctions on Iran’s oil industry taking effect on Nov. 4.
US President Donald Trump in May unilaterally withdrew the United States from the nuclear deal sealed in 2015 between Tehran and six world powers.
Underscoring that the ministry has consulted representatives from four unnamed Iranian companies as well as the Ministry of Industries prior to coming up with the list, Sangin said the ministry normally announces such a list by March, which marks the end of the Iranian fiscal year.
“However, as the Oil Ministry is currently holding tenders for raising oil production, it decided to announce the prohibited equipment earlier to save time,” he said.
The National Iranian Drilling Company has also commissioned domestic manufacturers to implement 50 contracts on technical services, welding, sandblasting, coloring, overhaul and procuring spare parts.
Oil Minister Bijan Namdar Zanganeh told ISNA last week that Iran needs investment to boost domestic production.
“The most important measure we should take is to facilitate the flow of investment in the oil sector,” he said.
“An effective strategy to help Iranian contractors improve their products’ quality is to invite them to bid for oilfield development agreements.”
Zanganeh says domestic companies have the potential to manufacture 85% of equipment needed by the in the oil and gas industry.
“If we proceed according to plans, up to 85% of equipment used in the petroleum sector can be produced by domestic companies,” Zanganeh said.
According the Oil Ministry officials, essential items in oil and gas exploration/production, including various types of drill bits as well as wellhead and downhole equipment, are being produced by domestic manufacturers.
