Mehran Makvandi made the remarks Monday at the Oil and Gas Field Production Enhancement Conference, thanking the Iranian Petroleum Engineering Association and the Research Institute of Petroleum Industry for organizing the event. He said production growth can be examined from several angles, including the development and modernization of drilling fleets and technical services aligned with national production plans.

Referring to NIOC programs, Makvandi said about $800 million has been allocated to the National Iranian Drilling Company to purchase 15 drilling rigs of varying capacities, along with auxiliary equipment such as cementing and acidizing units, in line with support for the private sector and strengthening state capabilities.

Need to Improve Drilling Efficiency

Makvandi stressed the importance of improving drilling efficiency, noting that a major challenge facing the industry is visible and hidden nonproductive time (NPT), which is estimated to account for more than 40% of drilling operations.

He said NPT at the National Iranian Drilling Co. stood at about 21% last year, with targets set to cut it to 10% in 1403 and 1404 (2024–25) and ultimately to the global benchmark of about 3%.

Citing successful international experience, Makvandi said countries such as the United States, Russia, China and Canada have significantly increased production by relying on advanced technologies, particularly hydraulic fracturing.

Core Challenge: Lack of Indigenous Know-How

Makvandi said Iran’s main challenge in hydraulic fracturing is not a lack of equipment—more than 90% of required equipment is available domestically—but rather a shortage of indigenous expertise in design and execution.

Without effective links between industry and universities, research centers and the Research Institute of Petroleum Industry, he said, even purchasing dozens of complete fracturing packages will not lead to operational success.

He added that hydraulic fracturing should be formally incorporated into NIOC policy and reflected in well design, completion strings and development plans for the southern oil-rich regions, central regions and other operators.

Makvandi said many past failures stemmed from neglecting safety and completion requirements in well design, noting that proper design and compatible completion fluids can prevent reservoir damage.

Shallow-Field Fracturing Pilots

Makvandi said several shallow, low-pressure-gradient fields—such as Masjed Soleyman, Naft Shahr and Haftkel—should be selected as pilot projects for fracturing operations, with participation from the private sector and universities and support from NIOC.

Executing pilots with internationally experienced companies and transferring technical know-how, he said, would help institutionalize the technology domestically.

He concluded that success in developing hydraulic fracturing depends on targeted investment in technical knowledge and building strong links among industry, academia and research centers, adding that equipment development alone will not deliver results.