Domestic manufacturers are capable of providing technical services and producing 80% of advanced oil equipment to develop downstream and midstream projects that will be tendered by the Oil Ministry soon, the head of the Society of Iranian Petroleum Industries Equipment Manufacturers said.
"Although we have been deprived of cutting-edge technology to manufacture machinery to launch upstream ventures, our factories can meet at least 50% of contractors' need for state-of-the-art equipment," Reza Khayyamian was also quoted as saying by ISNA.
Pointing to the Oil Ministry's plan to undertake 36 projects in the current fiscal, which started on March 21, Khayyamian said, "As per the ministry's rules, qualified Iranian contractors are obliged to purchase locally-made equipment."
According to the official, over $6 billion worth of oil contracts will be signed with local upstream and downstream companies to support the private sector in line with the country's push toward indigenization of oil and gas equipment, including control valves, pipes and rotating machines.
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