Ali Daqayeqi said purchasing drilling services under a PPP framework represents a major step toward increasing production from oil and gas fields. He noted that PetroIran Development has joined the national oil and gas production boost plan by signing a drilling services contract with the National Iranian South Oilfields Company (NISOC).

Highlighting the need to raise production amid a limited number of drilling rigs in the country, Daqayeqi said the PPP contract covers four 2,000-horsepower drilling rigs and was signed with NISOC in the presence of the president, the oil minister and the CEO of NIOC.

Daqayeqi said PetroIran Development and its subsidiaries, including Drilling International Co., have the technical capacity to participate in the national project, citing their experience in oil and gas projects and offshore drilling operations.

Why Public-Private Partnerships?

Explaining the advantages of the PPP model, Daqayeqi said the five-year operational guarantee lowers investment risk and enables long-term planning.

He said the project’s total investment is about $200 million, with 15% provided by NIOC as an advance payment and the remainder to be financed through external financing with the support of financiers. Repayment will be made over the five-year contract period.

Delivery Timeline and Rig Deployment

Daqayeqi said delivery times for the rigs vary between six months and one year, depending on the model and manufacturer, adding that efforts are underway to shorten the timeline by accelerating procedures.

He said the rigs will be deployed in fields operated by NISOC, with specific locations determined based on the company’s drilling plans and development priorities.

Daqayeqi said each well takes an average of four months to drill, and each rig can drill three to four wells per year. The resulting production increase will vary by field, ranging from 1,000 to 10,000 barrels per day.

Guaranteeing Private-Sector Participation

Addressing technology transfer and the use of domestic capacity, Daqayeqi said that although the rigs will be imported as complete packages, the company will rely on domestic, innovative and new technology-based firms to supply parts and provide support services. He noted significant growth among such companies at recent oil industry exhibitions.

Thanking the oil minister and the NIOC CEO for their support, Daqayeqi said the contract reflects a serious commitment to facilitating private-sector participation, calling it a major step toward boosting production, developing the economy and creating a model for greater private involvement in strategic oil and gas projects.