Speaking at a meeting on Sunday to discuss the formation of the association, Mostafa Mahdavi said a comprehensive assessment of the O&M sector had identified 50 major challenges across five key areas: human resource management and development, procurement and tender regulations, governance documents and guidelines, contractor qualification systems, and payment and cost structures.

Among the most pressing issues are the lack of standardized contract templates, inconsistent technical and quality evaluation criteria in tenders, the absence of dedicated pricing schedules, conflicts of interest involving permanent staff at outsourced facilities, the lack of a structured performance evaluation system, insufficient contract adjustment rates, and contractors' working capital constraints.

Mahdavi explained that these challenges were prioritized based on implementation difficulty and the expected benefits of proposed solutions. As a result, creating the O&M Contractors Association was selected as a top-priority project. He noted that international experience shows successful outsourcing systems rely on strong, organized, and accountable contractor associations.

A Strategic Partner for the Outsourcing Ecosystem

According to Mahdavi, the new association should go beyond serving as a traditional trade organization. Instead, it should become a specialized advisory body that supports the development of the oil industry's outsourcing framework.

Its key responsibilities would include professionally representing contractors while promoting national interests, improving industry standards and qualifications through specialized frameworks and contractor ranking systems, and strengthening knowledge management by documenting lessons learned, sharing best practices, and promoting technical expertise.

The Ministry also expects the association to play an active role in developing O&M outsourcing governance guidelines and standardized contract documents as a technical and legal partner.

In addition, the association could contribute to designing contractor evaluation systems, harmonizing tender assessment criteria, verifying member qualifications, preparing contractor shortlists, expanding specialized training programs, and implementing professional certification systems.

Mahdavi stressed that the relationship between employers and contractors should evolve from a purely contractual arrangement into a strategic partnership built on shared value.

Ministry of Oil Pledges Support

The Ministry of Oil reaffirmed its commitment to supporting the establishment of the association. The Physical Asset Management Department will officially recognize it as the legal and technical representative of O&M contractors in working groups, committees, and policymaking processes.

The Ministry also pledged to facilitate members' efforts to obtain specialized O&M qualification certificates from the Planning and Budget Organization, establish a permanent communication channel through a joint O&M outsourcing working group, and support innovation in areas such as smart facilities, online monitoring systems, and advanced technologies.

A Major Step for the Future of the Oil Industry

Mahdavi described the creation of the association as the beginning of a significant responsibility for the country's oil industry. He said the success of outsourcing depends on capable, professional, and accountable contractors, ultimately leading to more reliable operations, sustainable facilities, and stronger protection of national assets.

He invited industry stakeholders to participate in founding the association, expressing confidence that it would become a leading technical institution with the Ministry of Oil working alongside contractors throughout the process.

During the meeting, representatives from O&M companies shared their views and recommendations on the association's establishment, contractor qualification systems, standardized contracts, workforce challenges, tender procedures, and other outsourcing-related issues. Participants emphasized the importance of continuous cooperation between the Ministry of Oil and the private sector to address industry challenges and enhance O&M performance.