Domestic Consortium to Implement NIDC Projects

The National Iranian Drilling Company, a subsidiary of the National Iranian Oil Company, has signed a memorandum of understanding with a consortium of six domestic firms for implementing oil and gas development projects. The agreement was signed on Wednesday by Sepehr Sepehri, NIDC's managing director, and Hossein Afazel, the consortium's chairman, the Iranian Oil Ministry's portal, Shana, reported.

According to Sepehri, the cooperation focuses on drilling activities in Iran and overseas based on EPC contracts.

The bulk of deals concluded between domestic firms in the oil and gas sector follow EPC (engineering, procurement and construction) and EPD (engineering, procurement and drilling) contracts, which help contractors undertake most activities.

Referring to the Oil Ministry's policy of harnessing domestic potentials in the upstream and downstream sectors, the NIDC chief said, "NIDC welcomes increasing cooperation with domestic private companies to fulfill such a goal."

He added that domestic firms and contractors have an untapped potential which, if utilized properly, can meet his company's needs. The consortium comprises Akam Steel Company, Sirjangostar Global Group, Baron Compressor Company, Demico, Fanavaran Parsian Company and Payvaran Parsian Company.

The consortium's chairman noted that the six domestic firms completely cover the supply chain in the upstream sector.

"The member companies cover a wide range of services, including design and manufacture of equipment, operations and provision of licenses and insurance in the petroleum sector," he said. Afazel hoped that cooperation with NIDC will be a harbinger of hope for domestic contractors that seek stronger presence in the thriving industry. NIDC is responsible for drilling rigs operated by the National Iranian South Oil Company, Petroleum Engineering and Development Company, Iranian Offshore Oil Company, Iranian Central Oil Fields Company, Arvandan Oil and Gas Company and Pars Oil and Gas Company. The company has 73 drilling rigs, 68 of which are being used in joint oilfields, namely Azar in Ilam Province as well as South Pars, the world's largest gas field shared by Iran and Qatar, in the Persian Gulf.

  Cooperation With Foreign Firms

NIDC also signed an MoU with the Polish EXALO Drilling SA on Tuesday, based on which EXALO will provide NIDC with a range of services, including technical engineering support and supply drilling and extraction equipment. The company will meet its requirement from domestically-made goods. EXALO has planned to establish a strong presence in Arvand Free Trade Zone in southwest Iran, bordering Arvand River and southern Iraq, which in turn can help NIDC expand its foothold in southern Khuzestan Province.NIDC is engaged in 70% of Iran's onshore drilling ventures, yet it only accounts for 12% of offshore initiatives.