Within this framework, NISOC, while simultaneously focusing on production maintenance, field development, operational readiness, and strengthening the resilience of facilities, succeeded in increasing average daily crude oil output by approximately 100,000 barrels. This achievement, realized across the operational scope of the Karoun, Maroun, Aghajari, Masjed Soleyman, and Gachsaran oil and gas operating companies, offset the natural decline of reservoirs and underscored NISOC’s decisive role in ensuring sustainable national energy supply.

Parallel to this production trajectory, a conservation-oriented and environmentally responsible approach remained one of NISOC’s strategic priorities. In the area of associated gas recovery, the average daily gas flaring volume declined by more than 345 million cubic feet from the beginning of the 14th administration. Meanwhile, two major associated gas collection projects, implemented in partnership with Maroun Petrochemical Company and Persian Gulf Holding, reached approximately 80% completion. With a combined capacity of nearly 800 million cubic feet per day, these projects play a significant role in improving the efficiency of Iran’s energy mix and fulfilling the mandates of the Seventh Development Plan.

Implementation of the Country’s Largest Flare Gas Recovery Project with Private Sector Participation

Continuing along this path, the implementation of the country’s largest flare gas recovery project—centered on the participation of private and knowledge-based companies—marks a turning point in associated gas management. The daily recovery of more than 520 million cubic feet of flare gas, annual profitability exceeding $300 million, attraction of $518 million in private sector investment, creation of over 1,500 direct jobs in Khuzestan and Kohgiluyeh and Boyer-Ahmad provinces, and a substantial reduction in environmental pollutants through the extinguishing of 270 flares and prevention of 29,000 tons of greenhouse gas emissions per day represent some of the project’s key achievements.

In the same context, the gas optimization project and complete elimination of smoke from 21 tall flares around the city of Ahvaz stand as a clear symbol of the integration of industrial development with environmental stewardship.

Infrastructure Development and Operational Stability

In the infrastructure domain, 1404 was accompanied by the commissioning of 22 major industrial, construction, and environmental projects, with investments totaling more than 48 trillion rials and €194 million. These projects, primarily implemented in Khuzestan and partly in Kohgiluyeh and Boyer-Ahmad, significantly enhanced production capacity, safety, and facility stability.

This stability was further reinforced by the achievement of a new record in major overhauls of facilities and process equipment. Hundreds of process units, dozens of gas processing plants, and more than 200 heavy machines underwent comprehensive maintenance operations.

Strengthening the Role of the Private Sector

Alongside operational initiatives, NISOC pursued a deliberate strategy to strengthen the role of the private and non-governmental sector in the upstream oil value chain. This policy, driven not by divestment alone but by the objectives of enhancing production stability, improving efficiency, reducing project risks, and maximizing domestic technical and financial capacities, resulted in the signing of guaranteed purchase contracts for drilling and crude oil processing services.

Ensuring Sustainable Oil Production: From Drilling to Processing

Guaranteed drilling service contracts, following rigorous technical and economic evaluations, facilitated targeted private sector entry into one of the most critical segments of production. The provision of 20 onshore drilling rigs with 2,000 horsepower capacity and the planned drilling of hundreds of new wells not only provide a reliable foundation for production maintenance and growth, but also directly contribute to sustainable employment and activation of related industries.

Similarly, guaranteed crude oil processing service contracts under Build–Own–Operate (BOO) models represent another step toward redefining the private sector’s role in oil industry infrastructure development. Designed to increase crude oil processing capacity across multiple fields, these contracts reduce direct government investment burdens while establishing sustainable frameworks for long-term cooperation.

Collectively, these agreements, beyond creating hundreds of thousands of barrels of new processing capacity, reflect a meaningful shift in the approach to upstream development—one in which the private sector is positioned not merely as a contractor, but as a development partner and driver of sustainable production.

NISOC: A Key Pillar in Achieving Seventh Development Plan Targets

Aligned with the macro policies of the Ministry of Oil and under the guidance of the National Iranian Oil Company (NIOC), these measures demonstrate that NISOC’s role extends well beyond production. The company has become one of the key pillars in achieving the Seventh Development Plan’s objectives, including its substantial contribution to reaching the targeted daily crude oil production level of 4.58 million barrels.

Technology and Localization

In technology and localization, NISOC maintained its leadership through the implementation of “first-of-its-kind” domestic manufacturing contracts. The approval of 28 such contracts, valued at 6.868 trillion rials, resulted in foreign currency savings of €272 million and created productive employment for nearly 1,000 individuals, reflecting a targeted move toward reduced dependency and strengthened domestic capabilities.

Future Outlook: Reservoir Management and Enhanced Recovery

Looking ahead, reservoir sustainability and production continuity assumed more operational dimensions, particularly through efforts to increase recovery factors by at least one percentage point. Initiatives included collaboration with universities, research centers, and knowledge-based firms, the pilot implementation of low-salinity water injection in the Bangestan reservoir of the Ahvaz field, commissioning of the oil industry’s first domestically developed nitrogen production and injection system, and pioneering application of enhanced and improved oil recovery (EOR/IOR) methods.

These efforts have further solidified NISOC’s position as a leader in intelligent reservoir management.

Linking Oil Industry Development with Community Well-Being

Alongside its industrial achievements, NISOC continued to prioritize corporate social responsibility. The execution of extensive development and service projects in education, healthcare, water supply, roads, environmental protection, and social support—supported by investments totaling tens of trillions of rials—illustrates the linkage between oil industry development and improvements in local quality of life.

The Road Ahead

The path forward for NISOC centers on sustaining this trajectory with full commitment to the Seventh Development Plan’s mandates. Key priorities include increasing crude oil production to targeted levels, complete flare gas recovery by the end of the program, development of gas fields to meet rising domestic demand, and further strengthening the company’s role in stabilizing Iran’s energy portfolio.

These objectives will be pursued in parallel with deeper adoption of enhanced recovery techniques, advancement of indigenous technologies, development of human capital aligned with future missions, and expanded engagement with private and knowledge-based sectors—an integrated strategy aimed at safeguarding national reservoirs and resources while contributing meaningfully to economic growth and regional development.

Ramin Hatami

CEO of NISOC