Speaking on the sidelines of the second day of the 15th Khuzestan Specialized Exhibition of Petroleum Industry, Equipment, Manufacturing in Ahvaz on Sunday, Ebrahim Piramoun noted that NISOC currently produces 75% of the country’s oil and 15% of its gas, while also supplying a significant portion of feedstock for petrochemical plants.

He added that the company has exceeded its gas production commitments by over 30% this year, largely due to the collection of associated petroleum gas.

Piramoun cited economic sanctions and aging equipment as obstacles to increasing oil and gas production in southern Iran.

Despite these challenges, he credited oil industry workers for achieving significant production increases over the past four months.

Leveraging NTBFs

The NISOC CEO emphasized the need for extensive measures to maintain and increase production. He stated that despite sanctions, the company has set a strong record in boosting oil production and has successfully collected flare gas at five of its subsidiaries.

Piramoun highlighted that repair work and the launch of certain projects, carried out by experts, led to production increases in a short period.

These efforts, he said, have boosted oil revenues despite the country’s difficult economic conditions, contributing to national interests.

He noted that the Khuzestan Oil Industry Equipment Manufacturing Exhibition is being held with the participation of knowledge-based companies from about 15 provinces.

“We are reaching out to all new technology-based firms (NTBFs) and experts across the country to develop the oil industry,” he said.

Commitment to social responsibility

Piramoun stressed NISOC’s commitment to addressing deprivation in oil-rich regions through social responsibility initiatives.

He mentioned that the development of provincial roads is being pursued, with funding from oil-rich regions’ budgets and oversight by the company’s project management department.

He acknowledged that diverse opinions within the organization strengthen decision-making but emphasized the need for consensus on technical issues.

Piramoun noted that about 6-7% of NISOC’s oil production relies on gas injection for pressure maintenance, and without it, production would suffer.

Untapped potential, future goals

Piramoun stated that Iran still has significant untapped oil production potential.

Achieving a capacity of 5 million barrels per day is attainable through technological advancements and investment, though global trends away from fossil fuels may pose challenges.

He revealed that two major associated gas gathering projects, totaling 750 million cubic feet per day, will be completed by March 2027. Additionally, scattered associated gas will be auctioned to domestic NTBFs for maximum utilization.

70 mcm of gas delivered to national grid

Piramoun reported that NISOC workers have collected 200 million cubic feet of associated gas over the past four months through overhaul of aging equipment.

The company currently delivers 70 million cubic meters of sweet and light gas daily to the National Iranian Gas Company, exceeding its commitments by at least 30%.

He highlighted that at the Rag Sefid field, which produces 180,000 barrels of oil per day, significant amounts of associated gas are flared.

The Persian Gulf Holding is implementing three gas gathering projects in the field, one of which is nearing completion and will soon collect 120 million cubic feet of associated gas daily.

Tank project progress

Piramoun mentioned the semi-completed 28-tank oil storage project, valued at $4.4 billion, at NISOC. While 25 tanks have been awarded to contractors, only three projects have been completed so far, with two more expected to come online next year.

He explained that under a new restructuring plan, the subsurface section of the 28-tank project will be handled by NISOC, while the surface section will be assigned to contractors.

Doubling development, repair wells

Piramoun emphasized that to meet the goals of the Seventh Development Plan, the number of development and repair wells at NISOC must double.

He noted that most oil production in southern Iran is accompanied by water and salt, and existing desalination units are insufficient, necessitating increased capacity in this area.

The 15th Khuzestan Specialized Exhibition of Petroleum Industry, Equipment, Manufacturing will run from January 11 to 14 (Saturday to Tuesday) in Ahvaz and is open to the public from 9 a.m. to 5 p.m.