The plan comes as Iran marks the 47th anniversary of the Islamic Revolution and during a year designated as “Investment for Production.” The oil industry is seeking new ways to attract and direct capital toward projects central to the national economy.

Emphasizing the role of public participation and the private sector, the current administration has taken structural steps to address long-standing financing constraints and speed up the implementation of major projects. This report reviews the key measures and innovative tools designed to mobilize private and non-governmental investment in energy production and management.

Financing framework for upstream contracts

The National Iranian Oil Co. has developed a set of new financial instruments under its upstream contract financing guidelines to facilitate investor participation in oil and gas projects. These include payment commitment certificates, crude oil delivery warrants and commodity deposit certificates backed by crude oil and gas condensates.

The instruments are intended to reduce financing costs while improving liquidity and flexibility through their eligibility as collateral in financial institutions and capital markets. An integrated implementation directive was issued shortly after the guidelines took effect. Two companies have already used the mechanism to finance field development projects, and funding processes are underway.

Establishment of specialized financial entities

To enhance security and appeal for investors, the Oil Industry Guarantee Fund has been established with initial capital of 300 million euros and 20 partners, including banks, exploration and production companies, the National Development Fund and the Iran Energy Exchange. Operating independently, the fund is designed to back oil sector projects. Its charter and partnership agreement have been approved, and provisions have been made for issuing guarantees to shareholders.

In addition, based on Articles 12 and 14 of the Seventh Development Plan, project companies are being formed to attract small-scale investment and public participation. One example is Mapna Oil and Gas Development Co., which is being established and prepared for stock market listing to carry out a $102 million project to process output from the Qaleh Nar, Kaboud and Balarud fields.

Engagement with banks and financial institutions

Invoking Article 12 of the law on financing production and infrastructure, the National Iranian Oil Co. has formally invited banks and financial institutions to participate in upstream projects. In this context, Tejarat Bank has signed a financing participation agreement for the Ab-Teymour field processing project, which has entered the implementation phase.

Other measures to tap private and non-governmental capacity include fast-track, skid-mounted processing facilities under public-private partnership arrangements. Contracts signed to date would allow the private sector to handle 12% of the country’s crude oil processing capacity.

According to Amir Moqiseh, head of investment and business development at the National Iranian Oil Co., the first phase of PPP contracts covers processing of 115,000 barrels of crude oil per day at the Mansouri (Asmari), Qaleh Nar, Kaboud and Balarud fields. A second phase includes six contracts totaling 315,000 barrels per day at fields including Mansouri (Bangestan), Ab-Teymour, Ramshir, Karanj, Golkhari and Mansourabad, with a combined value of $1.67 billion.

While construction of permanent processing units can take up to 36 months, skid-mounted facilities can be completed in less than two years, significantly accelerating field development through private-sector participation.

Major investment drive in drilling fleet renewal

The Oil Ministry is also targeting a long-standing bottleneck in industry development by introducing a guaranteed purchase model for drilling rig services, a move expected to spur major investment in modernizing the country’s drilling fleet.

The National Iranian Oil Co. has invited investors to participate in five-year guaranteed service purchase agreements. Under a build-own-operate model and PPP framework, contracts have been signed with six companies to supply 20 onshore drilling rigs with 2,000-horsepower capacity. The deals are valued at $768 million and 28 trillion rials.

In offshore drilling, plans call for five rigs capable of operating in water depths of 350 feet or more. Two are nearing final contract signing, while others are undergoing regulatory approval. Once completed, the projects are expected to cover a significant share of Iran’s offshore drilling needs.

From investment prospectus to foreign currency financing

Other measures since the start of the 14th administration include compiling an “Investment and Financing Opportunities” prospectus presenting more than 200 projects valued at $137 billion to Iranian and foreign companies; negotiating over 100 oil and gas investment packages with private contractors and investors; approving upstream oil and gas contract guidelines through the National Financing Council; and securing foreign currency facilities from central bank resources to finance priority industrial projects.

Officials say the Oil Ministry’s strategy goes beyond financing individual projects, representing a broader transformation in governance and development of the oil sector. By introducing new financial instruments, creating specialized institutions, expanding cooperation with banks and the private sector, and focusing on efficient, fast-yielding models, the ministry aims to turn the oil industry from a predominantly state-run sector into a dynamic, investment-friendly engine for national production.

As momentum builds during the “Investment for Production” year, the initiative is framed as a path to maximizing value creation from Iran’s underground resources through public capital and entrepreneurship.