Contracts signed by refining and distribution, gas, and petrochemical sectors have been valued at approximately 7.8 billion dollars, 7.4 billion dollars, and 5.4 billion dollars, respectively.

According to Isna, most contracts that have been signed from September 2005 up to the end of the past Iranian year (March 2007) are related to development of phases 17 and 18 of South Pars gas field, whose value has been estimated at 3,055 million dollars while the lowest value of contracts pertained to exploration and development of Garmsar and Khorramabad oil and gas blocks, whose value has been estimated at 66 million dollars.

The most important oil industry contracts amounted to 13 contracts that were concluded for development of phases 17 and 18 as well as development of phases 15 and 16 of South Pars gas field, construction of Bidboland 2 gas refinery, development of the southern part of Azadegan oil field (phase 1), collection of associated gas in Kharg, and construction of liquid gas plant on the island.

Total investment in oil industry during the past Iranian year (ended March 20, 2007), grew by about 9.1 percent. Investment in the refining sector has increased from 476 million dollars in 2005 to 951 million dollars by March 2007 to achieve an approximate spurt in production and investment of about 100 percent (99.7 percent).

At the same time, total investments made in the National Iranian Oil Company’s projects during the preceding Iranian year, grew by 4.3 percent compared to 2005. Investment in the sector increased by 303 million dollars compared to corresponding figure of 2005.

The highest and lowest growth in investment was registered respectively by the National Iranian Oil Refining and Distribution Company (99.7 percent) and the National Iranian Gas Company (5 percent).

Out of total investments made in the National Iranian Oil Company’s projects by the end of the past Iranian year (March 2007), 2.513 billion dollars came from foreign resources, showing a decrease of 15.3 percent compared to the corresponding figure of 2005.

Foreign exchange investment through domestic resources in the oil sector by the end of the past Iranian year grew by 708 million dollars. During the same period, we have witnessed increased rial investment through domestic resources by 445 billion rials (up by 2.6 percent compared to a year before).

Also, total value of contracts signed by the National Iranian Oil Refining and Distribution Company from September 2005 to March 2007, has been estimated at 7.84 billion dollars. Most of those contracts pertained to development and quality improvement of products yielded by Abadan, Bandar Abbas, Arak, Isfahan, Tabriz, Tehran, and Lavan refineries as well as the new gas condensate refinery of Bandar Abbas, whose construction is still under way.

It should be noted that out of total investments made in refining and distribution sector in 2005 and 2006 has grown 460 percent with regard to domestic foreign exchange resources while showing an increase of 8.5 percent in terms of rial investments. During the same period, no foreign investment has been made in the sector.

Total value of contracts signed for the gas sector during the same period has amounted to 7.469 billion dollars. Most of those contracts were related to construction of Bidboland 2 refinery, construction of the seventh cross-country gas pipeline, contracts signed by provincial gas companies as well as purchasing equipment for the fifth cross-country gas pipeline.

From September 2005 to March 2007, eighteen important contracts were signed for the gas sector. However, foreign investment made in the sector from 2005 to early 2007 has decreased by 281 million dollars (32 percent) while domestic investment in the sector has grown by 4,136 billion rials (an 18-percent rise) during the same period. It should be noted that total growth of investment in the gas sector during the same period has been estimated at about 5 percent.

Some 5.462 billion dollars worth of contracts were signed for the petrochemical sector from September 2005 up to March 2007 the most important of which pertained to a power supply plan for the second phase of Assaluyeh petrochemical projects, Kavian Petrochemical Complex (11th olefin), Mahabad’s HD/LLDPE, urea and ammonia (Shiraz), and Kermanshah’s HD plant.

It should be noted that although contracts for 17 projects have been signed (from September 2005 to March 2007), foreign investment in the sector during the same period only increased by 9 million dollars (0.6 percent). Domestic investments in petrochemical sector in rials and foreign exchange also increased by 0.6 percent and 32 percent, respectively.

It is noteworthy that total growth in investment made in the National Petrochemical Company from September 2005 up to March 2007, has been estimated at about 11 percent, most of which is owed to domestic resources.

On the whole, the Iranian oil industry has not been very successful in attracting foreign investments from 2005 up to March 20, 2007. Such investments decreased in oil and gas sectors while no foreign investment was made in oil refining and distribution during the same period. Only petrochemical industry managed to attract 0.6 percent more foreign capital to its projects.