New development contracts in Iran's oil and gas industry worth a total of $13.6 billion have been signed. This action is part of the efforts of the fourteenth government to increase production capacity and develop oil and gas fields in the country.
Details of the Contracts and Development Areas
The Engineering and Development Manager of the National Iranian Oil Company, Reza Aghabati, announced the signing of five new contracts and stated that in addition to these contracts, approximately $2.3 billion in contracts in the upstream development sector are also being finalized and obtaining necessary permits. These contracts include the gas fields of Lavan, Khartang, and Sefid Zakhour, which have been introduced as fields of interest for development.
Development of Oil and Gas Fields
Aghabati also referred to 40 memorandums of understanding signed during the fourteenth government, which include 39 oil and gas fields. He added: "If these memorandums are converted into contracts, it will be possible to sign contracts with an investment value of over $37 billion." These statements reflect the government's determination to increase production capacity and attract investment in the country's oil and gas sector.
Facilitating Investment and Accelerating Field Development
The Engineering and Development Manager of the National Iranian Oil Company mentioned the actions taken to facilitate the investment process in the upstream oil industry and said that with the cooperation of the government and the Planning and Budget Organization, a resolution has been received from the Cabinet. This resolution is dedicated to the development and increase of production in gas fields and the allocation of produced gas to energy-intensive industrial units and petrochemicals, creating a suitable capacity for attracting investment in these industries.
Aghabati also pointed to the solution of signing preliminary and initial contracts that can help accelerate field development. He emphasized: "By utilizing the capacity of preliminary and initial contracts, some of the initial actions and preparations for field development can be started so that projects can enter the execution and development phase more quickly."
Iran's Oil and Gas Capacities
Iran is recognized as the third-largest holder of proven oil reserves and the second-largest holder of proven gas reserves in the world, and in total oil and gas reserves, it holds the first position globally. Aghabati stated that converting potential reserves into actual and sustainable production capacity is one of the main responsibilities of the upstream development sector of the oil and gas industry. In this regard, the fourteenth government has taken significant actions to develop fields and increase production capacity.
