Tehran’s Oil Tech Park, which is affiliated with the Oil Ministry, has signed four collaboration agreements with domestic technology entities to utilize their smart solutions in the conventional but crucial petrochemical sector.
During a Monday event in Tehran, the Oil Tech Park announced a partnership with the state-backed Iran National Innovation Fund to provide financing, market expansion and support to both fledgling and developed tech firms active in the field, Isti.ir reported.
INIF is managed by the Vice Presidential Office for Science and Technology and serves as the state's arm for allocating financial aid to local budding tech teams.
The Oil Tech Park also signed a second agreement with the Pardis Tech Park to hold joint exhibitions and conferences for attracting private investors and strengthening ties between the large industrial enterprises and the oil technology ecosystem.
Another agreement signed by the Oil Tech Park was with the Persian Gulf Petrochemical Industries Company.
PGPIC is a holding company boasting production plants, engineering firms, investment firms, training facilities and logistics firms involved in the implementation of petrochemical projects and expansion of facilities.
The Oil Ministry believes that the company can broaden its horizons and improve operations by incorporating cutting-edge technologies developed by domestic knowledge-based units.
A multilateral agreement was also signed by the Oil Tech Park, Parsian Data Processing Group, which is affiliated to the major private Parsian Bank, and the state-backed Iranian Oil Industry Ventures.
The agreement calls for the development of smart solutions to promote the petrochemical sector using artificial intelligence and the internet of things.
The ministry plans to increase the productivity of oil wells, optimize gas consumption, develop the oil production chain and complementary industries, and boost the collection of flare gas
Speaking at the signing ceremony, Oil Minister Javad Owji stated that the ministry and its subsidiary companies have prioritized collaboration with the technology ecosystem in four areas: increasing the productivity of oil wells, optimizing gas consumption, developing the oil production chain and complementary industries, and collecting flare gas.
“Utilizing the vast potentials of the technology ecosystem can increase employment and generate significant added value and revenue in the field,” he said.
Iran is an energy superpower and its petroleum industry plays an important role in the country’s economy.
In 2012, Iran exported 1.5 million barrels of crude oil per day, becoming the second-largest exporter among the Organization of Petroleum Exporting Countries. In the same year, officials estimated that Iran's annual oil and gas revenues could reach $250 billion by 2015.
However, the industry was disrupted by an international embargo from July 2012 through January 2016. Iran plans to invest $500 billion in the oil sector before 2025.
Previous Measures
In a similar move in July, two knowledge-based companies signed contracts with Iran’s Research Institute of Petroleum Industry, affiliated with the Oil Ministry, to inject new technologies in the petrochemical sector.
According to RIPI’s reports, Azma Sanj Pishro Company in Tehran collaborated with the institute to transfer the know-how of water- and oil-based nanofluid production.
The institute, in return, has committed to provide technical consultation and support, commercialize ASP’s petrochemical products, make research and development investments and expand the tech firm’s market.
The second contract was forged with Toftech company operating in Isfahan, the institute said.
Toftech specializes in the manufacture of advanced scientific devices used in laboratories, including mass and ion-mobility spectrometers.
RIPI joined hands with the company to assist the production of IMS used in the analysis of sulfur and mercury compounds and other gaseous and liquid materials for research purposes.
Ion-mobility spectrometry is an analytical technique used to separate ionized molecules in the gas phase based on their mobility in a carrier buffer gas.
They come in various sizes, ranging from a few millimeters to several meters depending on the specific application, and are capable of operating under a broad range of conditions.
Hoping that the collaboration will accelerate the process of upgrading the key sector, RIPI officials called on interested tech firms for joining the journey and sharing knowledge and facilities.
Technological Boost
Tech developments in oil industries grabbed the spotlight in mid-June when an oil and gas tech park was launched in Tehran with the support of the Vice Presidential Office for Science and Technology.
The park is established over 32 hectares in the former Research Institute of Petroleum Industry’s site in the southern Baqershahr neighborhood of Tehran.
The tech park is aimed at injecting state-of-the-art technology into the domestic petroleum industry and incorporate the know-how generated by universities and research institutes.
It plans to host and support knowledge-based companies and startups for developing smart ideas to upgrade technologies, develop markets, create jobs and boost their capacities in the key sector.
Tech teams entering the park can enjoy legal and tax exemptions, and receive up to 5 billion rials ($16,600) of seed money from the Iran National Innovation Fund, affiliated with the vice presidential office.
In line with the park project, an oil innovation and research fund was established in Tehran to support knowledge-based companies active in the petroleum sector.
Startup Investment
In April, Bijan Namdar Zanganeh, the former oil minister, announced plans to invest $80 million in startups and knowledge-based firms.
“The ministry is determined to create opportunities for startups so that they can bolster different sectors of the energy industry, especially those manufacturing pipes, turbines and compressors,” he said.
He added that the ministry wants startups to propose new ideas and innovative plans to help cut production costs and improve productivity in the key sector.
The ministry’s R&D Department is tasked with expanding technological facilities to host startup companies.
Zanganeh inaugurated the first Oil Technology Park in Shahr-e Rey in southern Tehran last year, which is providing financial aid and equipment to researchers for implementing their projects.
“Startups have already indigenized key catalysts and essential equipment and parts for the petrochemical and drilling sectors,” he said.
According to Mohammad Sadeq Khayyatian, an official with the Iran National Innovation Fund, due to its overdependence on oil revenues, Iranian governments did not pay attention to the revenue-generating potential of knowledge-based firms.
Khayyatian said that has now changed and Iran is increasingly counting on the technology ecosystem for creating wealth and the government is also increasing its financial support to knowledge-based companies.
“The government plans to offer tax and customs exemptions to high-tech firms, ease the cumbersome process of issuing commercial licenses, cut social security insurance costs, reduce the obligatory military service duration [for tech enthusiasts] and help empower innovative enterprises,” he said.
