The National Iranian Oil Company has initiated first-time production contracts with the aim of developing local manufacturing and supporting knowledge-based companies. Seyed Dadush Hashemi Golsefid, the manager of construction support and procurement at this company, elaborated on the management's plans for consolidating material needs and creating sustainable demand in an interview.
Development of Local Manufacturing and Guaranteed Purchasing
Hashemi Golsefid emphasized that in first-time production contracts, the capacity of the Innovative Construction Contract Framework (PDA) is utilized. This mechanism allows for a commitment to future purchases of the first-time produced technological product, contingent upon successful prototyping and obtaining necessary approvals. This approach can assist in guaranteed purchasing of part or all of the National Iranian Oil Company's needs from knowledge-based companies.
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Financial Challenges and Resource Procurement Solutions
The manager of construction support and procurement at the National Iranian Oil Company pointed out the financial challenges faced by some domestic manufacturers, stating: "Knowledge-based companies often lack the necessary financial capacity to establish production lines. The high risk of first-time production also makes attracting investors difficult." Therefore, utilizing legal and contractual capacities for financing and creating a market for domestic products is crucial.
Hashemi Golsefid also added: "Alongside the future purchase commitment mechanism, providing advance payments of up to 50% or more in first-time production contracts and engaging with financial resource providers, including non-governmental research and technology funds, is on the agenda."
Results and Goals of First-Time Production Contracts
The development of local manufacturing and support for knowledge-based companies in the oil industry has been pursued in recent years using various contractual and legal tools. First-time production contracts have been focused on enabling the design, manufacturing, and commercialization of goods and technological equipment that have not been previously produced domestically.
The Innovative Construction Contract Framework (PDA), which was issued on December 20, 2025, is mandatory for main and subsidiary companies under the Ministry of Oil and has become the basis for signing first-time production contracts for goods and industrial equipment within the country. This document allows oil companies and domestic manufacturers to support prototyping stages by defining the obligations of the parties and anticipate product purchases after successful technical evaluations.
By utilizing these capacities, the financial barriers for knowledge-based companies to enter the industrial production process will be removed, and the groundwork for developing production capacity and timely supply of necessary goods for the National Iranian Oil Company will be established.
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