Hamid Bovard, speaking Monday at a ceremony to sign selected research and technology contracts at the NIOC, said research has been placed at the forefront of the company’s work. He noted that Iran’s oil industry has long been a leader in this field, pointing to institutions such as research centers, technology parks and the Petroleum University of Technology.

He said numerous research initiatives have already been carried out across the oil industry, adding that the budget earmarks up to 4% of current expenditures for research. Bovard stressed, however, that spending must be effective, given Iran’s dependence on oil revenues and the significant impact each research initiative can have.

Monitoring Key to Oil Industry Efficiency

Bovard said about 60% of development costs in the oil industry are related to drilling, adding that even a 10% reduction in those costs through research and technology would significantly contribute to higher output.

He said each drilling rig is expected to drill three wells a year, and increasing that figure to four wells per rig could raise annual oil production by up to 100,000 barrels.

Emphasizing the importance of monitoring, Bovard said it enhances transparency in the oil industry and helps resolve many legal and contractual issues. He added that the NIOC and the broader oil sector are already among the most transparent organizations in the country.

Research Must Go Beyond Paper

Bovard said there will be no bans or restrictive caps on research funding and pledged support to ensure projects are carried out. He said the company will pursue innovative research to improve performance and ensure that studies do not remain merely on paper.

He added that, given delays in various sectors of the country, access to up-to-date technologies can help offset much of that lag and ultimately create economic value.