Underdeveloped Infrastructure Undermining Oil Equipment Firms

Although Iranian oil and gas equipment and machinery can compete with foreign brands, manufacturers still cannot have their fair share in international markets, head of the Iranian Oil Equipment Manufacturers' Association said.
"Underdeveloped infrastructure, especially in power and natural gas sectors, US sanctions and unclear contracts are among the most formidable challenges with which local companies have to deal," Ehsan Saqafi was also quoted as saying by ILNA.
Domestic companies have indigenized almost 85% of petroleum and gas processing and production equipment. Despite the progress, they still face an array of difficulties that do not allow them to compete with foreign products whose quality is even lower than Iranian goods, he added.
Saqafi said the remaining machinery and tools (15%) cannot be made domestically either due to tech shortcomings or lack of basic materials, adding that no country can be 100% self-reliant and setting up production lines for some parts and equipment is not cost-effective and must be imported.