Private sector participation in upstream oil activities is rapidly expanding. Ramin Hatami, CEO of the National South Oilfields Company, announced the entry of this rig into operational orbit during a visit to the first drilling rig secured under new contracts. These contracts were signed in December of last year with the aim of increasing oil and gas production within the framework of the country's seventh development plan.
Details of Contracts and Drilling Equipment Supply
Hatami considered the supply of drilling equipment as one of the key requirements for the development of oil and gas fields, adding that the procurement of necessary drilling rigs is a priority for the upstream oil industry, pursued with the participation and investment of the private sector. In this regard, the first onshore drilling rig with a capacity of 2,000 horsepower, named OPC.1, has been supplied and launched by Oxin Petroleum Engineering and Drilling Services Company.
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This rig is stationed at the operational site of well number 62 in the Ab-Timor oil field, and its drilling operations began on October 1, 2026. Hatami also referred to plans for the launch of other rigs covered by the contract, stating that according to reports, it is expected that two more rigs will enter operational orbit by the end of this year.
Status of the Country's Drilling Fleet and the Role of the Private Sector
The CEO of the National South Oilfields Company further pointed to the status of the country's onshore drilling fleet, stating that currently, 121 light and heavy drilling rigs are active in the onshore sector. With the addition of 18 new rigs based on recent contracts, the share of the private sector in this fleet will increase.
Hatami emphasized that private sector participation is not limited to the supply of drilling equipment, and activities in the processing and collection of associated gas from oil have also been delegated to the private sector. As a result of implementing these projects, we will soon witness an increase in the share and role of this sector in the development of upstream oil industry activities.
He concluded by stating: The implementation of these contracts and the utilization of the investment capacity and executive capabilities of the private sector will create the groundwork for broader participation of this sector in the development of oil fields and achieving the production goals of the oil industry.
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