The National Iranian Oil Company (NIOC) has kicked off executive operations for five oil and gas field development contracts valued at $13.6 billion, a move that underscores the 14th government’s push to expand upstream capacity. Reza Aqebati, NIOC’s director of engineering and development, said the projects will raise daily production by over 600,000 barrels of oil and 30 million cubic meters of gas.
Beyond these five contracts, Aqebati noted that approximately $9.3 billion in additional upstream deals have been signed and are now undergoing ratification and permitting. He also pointed to roughly 40 memoranda of understanding signed with various parties, covering 39 oil and gas fields. Should these MOUs be converted into binding contracts, they could bring in more than $37 billion in investment.
The fields in focus include Lavan, Khartang, and Sefid Zakhur, while talks are ongoing for the Yadavaran field with both domestic and international investors. To speed up project execution, NIOC has adopted a strategy of signing preliminary contracts. This allows initial work to begin during the often lengthy ratification period of the main contract, helping projects enter the development phase faster.
A significant regulatory boost has come from a Council of Ministers approval, secured with the government and the Plan and Budget Organization. It permits gas produced from new developments to be allocated to energy-intensive industrial units and petrochemical plants, thereby creating a dedicated investment incentive for those sectors.
