Amir Moqiseh, director of investment and business development at NIOC, said the company has taken a more realistic, domestically focused view of Iran’s oil economy and, since last year, has introduced a range of measures to attract investment and expand private-sector involvement.

Speaking Tuesday on a TV program, titled “From Capacity Building to Maximum Utilization: The Future of Iran’s Petrochemical and Oil Industries,” Moqiseh said Iran’s oil industry has reached maturity in investment. He said NIOC’s new strategy emphasizes full use of domestic capabilities while creating conditions for an active role by private and nonstate investors.

He cited the “Transformation in Upstream Oil and Gas Investment and Development” event held earlier this year, saying strong interest from economic actors, financial institutions and the private sector led to the signing of several contracts in a short period, with tangible effects on production, employment and economic value creation.

Moqiseh said the oil industry remains a key driver of the national economy, adding that private-sector participation in oil projects generates sustainable revenue while creating widespread employment opportunities for skilled domestic workers.

$12b in Ratified Upstream Contracts

Moqiseh said NIOC’s activities follow three main priorities set by the oil minister. The first is increasing oil and gas production capacity. He said two upstream contracts under the Iran Petroleum Contract (IPC) model have been signed this year for gas field development, with three more expected by year’s end.

Since the start of the year, five contracts have been ratified and entered the execution phase, he said, with a combined value exceeding $12 billion. The projects are expected to create significant employment in the upstream oil and gas sector.

The second priority is accelerating development of shared oil and gas fields. Moqiseh said the development contract for the shared Azadegan oil field has been ratified, and production is expected to exceed 550,000 barrels per day in the near future through a consortium of banks and exploration and production companies.

Shift in Financing and Investment Models

The third priority, he said, is a fundamental shift in financing and investment. NIOC is moving away from the traditional employer-contractor model toward an investor-investee framework in which contract parties are treated as partners.

He said aligning interests under this model reduces costs, accelerates project execution and maximizes economic returns for the country.

Moqiseh said pressure-boosting contracts at South Pars have been signed, with Iranian contractors responsible for implementation. Infield drilling is underway, and development of South Pars Phase 11 by Petropars is progressing at an accelerated pace.

He described offshore drilling rigs as a key bottleneck and said plans are underway to secure four offshore rigs, some of which have already entered the country, alongside progress in supply chains and support services.

Petrochemical Investment in Upstream Projects

Moqiseh pointed to opportunities outlined in the Seventh National Development Plan, saying petrochemical investment in upstream projects helps ensure feedstock security, expand production, reduce flaring and generate sustainable revenue.

He said policies under Article 15, Clause B of the plan have created favorable conditions for downstream oil and gas development, particularly by facilitating stable feedstock supply and investment in petrochemical and energy industries.

Most contracts signed this year, or set to be signed by year’s end, involve petrochemical companies, he said. These firms are investing upstream to secure long-term feedstock using revenues from their own production.

Petrochemicals Lead Flare Gas Collection

Moqiseh said the cooperation model is mutually beneficial, allowing petrochemical companies to profit from upstream projects while safeguarding long-term business stability and shareholder interests.

At the same time, the government and NIOC benefit from private financing, particularly amid funding constraints, he said.

He said five major flare gas collection projects have been defined nationwide, all implemented by petrochemical companies or related entities.

Increased Feedstock at NGL 3100

Moqiseh said the technical complexity and scale of the contracts require time for gradual commissioning. He described weekly follow-ups by the president and oil minister on flare gas reduction as encouraging but also a significant responsibility for NIOC.

He said projects completed so far are collecting about 145 million cubic feet of associated gas per day, with flaring declining as units gradually come online.

The Dehloran gas collection project, inaugurated by the president, now collects 82 million cubic feet per day and feeds it to the NGL 3100 facility, Moqiseh said.

NGL 3100, inaugurated in August with a capacity of 240 million cubic feet per day and initial intake of 80 million cubic feet, is now receiving 130 million cubic feet per day, he said.

Moqiseh said Iran currently flares or releases about 50 million cubic meters of gas daily. Projects at Bidboland, Marun and several transferred sites are underway to reduce that volume, with results expected by mid-next year.

He said 12 contracts signed in early January, with execution periods of about 15 months, will collect 300 million cubic feet of gas per day and generate about $600 million annually. Six additional contracts to be signed by year’s end are expected to add about $65 million a year in revenue.

Ending Uncertainty Over Flaring

Moqiseh said contracts signed or to be signed in the second half of the year will collect about 370 million cubic feet per day. The Kharg NGL project, backed by joint petrochemical investment, has been finalized and will soon enter the execution phase.

He said NIOC aims to eliminate all unresolved flaring by the end of the year and collect a significant portion of remaining flare gas within 15 months, in line with directives from the president and oil minister.

With contracts signed in January and additional deals expected soon, 44 gas flares will be extinguished nationwide, he said, significantly reducing pollution and improving economic efficiency.

Expanding Private-Sector Participation

Moqiseh said three upstream gas field development contracts will be signed by year’s end with energy, power and energy holding companies, with three more also planned.

He said NIOC is no longer limiting itself to large-scale upstream contracts suited only to major energy holdings. Under the new approach, medium-sized and smaller companies are being integrated into the upstream value chain through expanded public-private partnership models.

Six public-private partnership contracts were signed at a recent event, he said, adding about 490,000 barrels per day to national crude processing capacity.

Boosting Drilling and Processing Capacity

Moqiseh said contracts with private and nonstate entities will add 20 drilling rigs to Iran’s fleet. In offshore drilling, agreements are in place to supply 10 rigs, including four under private partnership contracts.

By year’s end, NIOC also plans to sign contracts for five additional drilling units and create about 150,000 barrels per day of new crude processing capacity, steps he said will significantly strengthen production capacity and upstream development.