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Iran signs $6.2bn worth of contracts to increase oil output by 280,000 bpd
Iran signs contracts worth $6.2 billion to increase oil production using domestic expertise.

Iran has awarded dozens of contracts worth $6.2 billion to domestic companies to have oil production increase by 280,000 barrels per day (bpd) as part of a plan entitled “The extra-output scheme”.

A senior official from the National Iranian Oil Company said on Wednesday that 10 out of a package of 33 contracts had been signed with companies and manufacturers based in Iran to start construction and installation of equipment at offshore and onshore oil fields in the country.

Reza Dehghan said the contracts showed that Iran was determined to increase investment in its oil industry despite sanctions imposed by the United States which restricts the country’s ability to export crude.

“The execution of the extra-output scheme in the oil fields is a sign that the rights of the Iranian nations in joint fields are protected,” said the official, making a reference to the oil fields that are shared with neighboring countries.

Dehghan said nearly a quarter of the projected increase in Iran’s daily oil output would come from Ramshir and Mansouri oil fields, both located in the southwestern Khuzestan province.

He said around a third of the value of the contracts, some $2 billion, would be dedicated to equipment and installation facilities that would mostly be built by Iranian companies.

Despite having its crude exports reduced as a result of sanctions, Iran has maintained its oil production at levels ranging from three to four million bpd since last year.

About the National Iranian Oil Company (NIOC)

Since 1951, National Iranian Oil Company (NIOC) has been directing and making policies for exploration, drilling, production, research and development, refining, distribution and export of oil, gas, petroleum products.

NIOC, with a vast amount of oil and gas resources, is one of the world’s largest oil companies. At the present time, it is estimated that the company holds 156.53 billion barrels of liquid hydrocarbons and 33.79 trillion cubic meters of natural gas.

With advances in technology and increasing complexities of economic and political relations, NIOC has risen to a privileged status. Therefore, national and regional policies and cooperation with industrial countries in the provision in the supply of energy and stabilizing global oil markets are on the agenda of NIOC. On the verge of the fourth decade of the Islamic Revolution, oil industry workers have every reason to be proud of their achievements before the noble people of Iran, and they pride themselves on having learned the lessons of self-assurance and dignity.

NIOC, in accordance with Article 44 of the Constitution, gives authority to different sectors, while supervising oil industry activities. The company has taken major steps toward establishing business enterprises, funded financial resources for development, helped to update technologies for exploration, drilling and production with reliance on the knowledge of Iranian experts.

NIOC consists of seventeen production companies, eight technical service companies, seven managements, six divisions (administrative units) and five organizational units.


Origine : Communiqué National Iranian Oil Company

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