Research and technology, as the main pillars of transformation in the oil industry, play a decisive role in reducing dependence on foreign resources and managing constraints arising from sanctions. By relying on domestic capabilities and concentrating on solving operational challenges, oil companies have strengthened the path toward knowledge-based development and technological innovation aligned with the country’s macro objectives, taking effective steps to enhance strategic capabilities.

Omid Shakari, the deputy oil minister for engineering, research and technology, told Shana that the department’s mission extends beyond technical support to include guiding the oil industry’s development.

“In the past year, we sought to strengthen the link between engineering, research and technology through a holistic and systematic approach, placing these three areas at the service of solving real challenges in the oil industry,” he said. “The outcome of this approach has been a focus on process reform, improved decision-making quality, and reduced technical, contractual and technological risks in oil industry projects.”

The full interview with Shakari follows:

What were the most important areas of performance for the deputy ministry over the past year?

Shakari said the department’s one-year performance can be summarized within a coherent strategy comprising several interconnected key pillars, all aimed at strengthening the oil industry’s value chain and enhancing its resilience.

“The first and most fundamental pillar has been the re-engineering of the oil industry’s technical and operational system,” he said. “Our objective has been to increase transparency, reduce contractual disputes and ultimately improve productivity at all stages of projects.”

The second pillar involved organizing and directing research and technology activities.

“We believe fragmented research efforts cannot address the industry’s vital needs,” he said. “Therefore, we worked to move research out of isolated silos and place it directly in the service of operational and strategic priorities.”

The third pillar centered on technology development and first-time production, which he described as the primary tool for reducing foreign dependence and deepening domestic manufacturing.

“Through this strategy, we are addressing technological bottlenecks and sanction-related constraints,” he said.

In parallel, complementary measures were pursued, including targeted support for knowledge-based companies and domestic manufacturers, updating standards to enhance safety and quality, and strengthening passive defense and crisis management frameworks.

What actions were taken in the technical, operational and project evaluation system?

Shakari said multiple initiatives were implemented to establish a coordinated and integrated technical and operational system across the Oil Ministry.

“These measures included drafting, compiling and issuing regulations, guidelines, criteria and technical standards, along with monitoring their proper implementation,” he said.

Among the key steps was the preparation of standardized contract documents. In line with national laws supporting knowledge-based companies and maximizing the use of domestic production capacity, a standardized “first-time production” document covering first- and second-type products — including goods, industrial equipment and industrial chemical products — was developed and issued in December.

The ministry also updated the oil industry’s dedicated price lists for 2025, revising certain sections and expanding regional adjustment coefficients to better reflect project conditions across different parts of the country.

Additionally, a guideline on determining remuneration for specialized agents in upstream problem-oriented research projects and downstream demand-driven projects was issued for 1404.

In the area of financial adjustments and tender evaluation, the ministry revised and issued new financial evaluation guidelines aimed at ensuring fairer competition and a unified approach to determining the lowest appropriate bid.

To compensate for costs stemming from currency fluctuations, a supplementary guideline addressing the impact of exchange rate increases on rial-based contracts lacking adjustment clauses was also issued.

What measures were adopted to improve tender procedures and company qualification in upstream projects?

Shakari said the ministry established unified procedures for conducting tenders, particularly for complex, multi-dimensional contracts.

“These frameworks provide employers with the flexibility to select appropriate tender methods based on project complexity,” he said.

To facilitate investor participation and financing of oil and gas field development projects, the ministry developed legal and contractual structures enabling partnerships between qualified oil companies and investors.

Other measures included issuing guidelines to monitor the operational capacity of drilling rig suppliers and drilling companies to prevent overcommitment and project delays.

The ministry also updated contractor qualification regulations in cooperation with the Planning and Budget Organization, adding three new subcategories addressing emerging industry needs, particularly in exploration, offshore structures and operation and maintenance contracts.

A new round of calls for evaluating Iranian exploration and production (E&P) companies was launched. Following specialized assessments, six companies and partnerships were added to the approved list, bringing the total number of eligible Iranian E&P entities to 27.

What role did the Oil Ministry play in international standardization cooperation?

Shakari said the ministry assumed responsibility for the secretariat of the national mirror committee of ISO Technical Committee 67, titled “Oil and gas industries including low-carbon energy,” and established seven corresponding subcommittees.

The ministry also participated actively in responding to documentation from IEC and IECEx, particularly in areas related to equipment used in explosive atmospheres common in the oil industry.

At the national level, 38 standards were revised and localized, and 13 new standards were developed. This year, 92 oil industry standards (IPS), including national and corporate standards, were issued as mandatory, while 78 additional standards are undergoing trial implementation before becoming compulsory.

How were first-time production and localization policies pursued?

Shakari described the ministry’s approach as active and strategic.

“The goal is not only to support domestic production, but to use it as a driver for overcoming sanction-related constraints,” he said.

In cooperation with the vice presidency for science, technology and knowledge-based economy, a transparent framework for issuing permits for first-time production projects was developed.

Over the past year, 17 proposed projects were reviewed, and contracts for 29 approved projects were pursued. A list of 96 strategic technological items was also prepared to guide companies’ technology development priorities.

How did the ministry support knowledge-based companies and domestic manufacturers?

Measures included updating and announcing a list of goods prohibited from foreign procurement to secure the domestic market for Iranian producers. The ministry also published a directory of selected Iranian oil industry manufacturers to promote exports.

Localization efforts for critical equipment, including wellhead and downhole gas compressors for the South Pars pressure-boosting project, were prioritized.

The ministry reviewed 26 cases of complaints from knowledge-based companies, particularly concerning imports of goods with domestic equivalents.

What were the achievements in international technological cooperation?

Shakari highlighted cooperation with Russia on transferring intelligent pigging technology for oil and gas pipelines and establishing a comprehensive pipeline testing center.

“These collaborations have contributed to knowledge transfer and strengthened domestic engineering capabilities,” he said.

What developments occurred in research and technology?

Key initiatives included issuing guidelines for organizing research activities, publishing a technology development road map and defining research priorities. More than 40 technological proposals were evaluated, with several entering implementation and commercialization phases.

Loan requests from 141 technology firms were reviewed, resulting in the approval of 3.67 trillion tomans in facilities, of which 1.6 trillion tomans has been disbursed.

What actions were taken in passive defense and crisis management?

Two new guidance documents were issued, and multiple drills were conducted across critical oil industry sites. A total of 78 resolutions were adopted in seven sessions of the Passive Defense Executive Committee.

How are renewable energy and energy management being advanced?

Solar power capacity under construction or planning across the oil industry stands at about 156 megawatts, with nearly 4 MW already operational. The ministry also implemented a building energy management system to enable data-driven decision-making.

What is your overall assessment of the road ahead?

“The future of the oil industry is inconceivable without systematic engineering, problem-oriented research and indigenous technology,” Shakari said. “We are committed to continuing this path with strength.”