Iran's oil and gas industry has consistently been one of the country's most critical economic and strategic pillars, playing a vital role in energy supply, economic development, and regional diplomacy.

Since the revolution, despite numerous challenges, the industry has pursued growth and progress by leveraging domestic capabilities and local expertise.

This report provides a comprehensive overview of the achievements in Iran's oil and gas sector, particularly in the development of shared fields, increased production capacity of crude oil and gas, and the collection of associated gases. It also examines the plans and actions of the 14th government to address energy imbalances and improve industry efficiency.

Remarkable achievements in exploration

Over the past 46 years, oil and gas exploration and the increase in reserves have progressed in tandem with production and exports. At the start of the Islamic Revolution, recoverable gas reserves stood at 8 trillion cubic meters, and liquid hydrocarbons at 88 billion barrels.

By the end of the Iranian year of 1402 (March 19, 2024), these figures had risen to 32.3 trillion cubic meters for gas and 156.5 billion barrels for liquid hydrocarbons.

Exploration serves as the foundation for subsequent activities in the oil and gas value chain. In the second decade after the revolution, following the end of the imposed war, exploration activities gradually accelerated, with more resources allocated to them.

As a result, recoverable natural gas reserves have increased by more than 3.5 times, with the discovery of the South Pars gas field, one of the world's largest gas reserves, being a key achievement. Liquid hydrocarbon reserves have also grown by 80%, with the discovery of major oil fields such as Azadegan, Yadavaran, and Namavaran marking significant milestones.

Exploration operations are currently planned and underway across vast areas of the country, including the Persian Gulf, Dasht Abadan, North Dezful, Kope-Dagh, Lorestan, Moghan, Dasht Gorgan, and the South Caspian region. Priority is given to oil and gas exploration in border and shared areas with neighboring countries, with most recent activities, including drilling and seismic surveys, concentrated in these regions.

Key discoveries since the revolution include the South Pars gas field, Azadegan oil field, Yadavaran oil field, Tabnak gas field, Changouleh oil field, Azar oil field, Kish gas field, Sardar Jangal field, South Pars oil layer, Arash oil and gas field, Belal field, Paranch oil field, Jofeir field, Aban field, Farzad B gas reservoir, Sepehr field, Arman field, Sohrab field, Eram field, Minou field, Arya field, Gordan field, and others.

NIOC’s achievements

The National Iranian Oil Company (NIOC) has achieved significant milestones under the 14th administration, including the development of a comprehensive plan to modernize the drilling fleet and update drilling-related equipment and technical services. In the Iranian year of 1403, 65 oil and gas wells were drilled and completed, including 15 development wells and 50 repair wells in operational areas by the National Iranian Drilling Company (NIDC).

Specialized drilling operations grew by 19% compared to the previous year. Additionally, negotiations were conducted for over 100 investment packages in the oil and gas sector with private contractors and investors.

Other achievements include obtaining permits for the domestic production of 14 strategic items worth $2 billion, pursuing the replacement of operational vessels with domestically built ones worth $500 million, and signing a tripartite memorandum for the revival of closed and low-yield wells between NIOC, the Oil Industry Technology and Innovation Park, and the Innovation and Prosperity Fund.

Oil as a symbol of national progress, independence

Recent achievements have not only strengthened Iran's position in the global energy market but also played a crucial role in ensuring stable domestic energy supply, painting a bright future for the industry.

Iran's oil and gas sector today shines as a symbol of national progress and independence, continuing to advance. Significant efforts have been made to develop oil and gas fields, particularly shared fields with neighboring countries, through buyback contracts, financing, and domestic resources.

The development of gas fields to increase natural gas substitution for liquid fuels and gas injection into oil fields to enhance recovery rates has been a priority for the Ministry of Petroleum.

Natural gas production has increased nearly tenfold, and gas condensate production has grown more than 24 times since 1979. Key developments include the South Pars, Nar, Kangan, Aghar and Dalaan, Sarkhoun, Gourzin, Gonbadli, Khangiran, Tabnak, Tang Bijar, Homa, Shanoul, and Varavi fields.

14th administration's efforts to address gas imbalance

In its first five months, the 14th administration took significant steps to address gas imbalances, including ensuring stable gas production during the cold season despite severe summer shortages. Measures included major repairs of upstream and downstream facilities, increasing crude gas production by 10 million cubic meters per day through the commissioning of six gas wells in the Central Iran Oil Company, and early winter production increases in Central Iran's gas fields.

Other initiatives included the commissioning of the Varavi gas field pressure boosting station, completing major repairs at the Tang Bijar field, and increasing production capacity at the Dalaan refinery.

South pars: crown jewel of Islamic Revolution

The South Pars gas field, one of the world's largest independent gas reserves, is located on the Iran-Qatar maritime border in the Persian Gulf, 100 kilometers from Iran's southern coast. Its existence was confirmed in 1990 with the drilling of the first exploration well.

Iran's share of the field is 3,700 square kilometers, holding 14 trillion cubic meters of gas, about 8% of the world's total reserves. The field also contains an estimated 18 billion barrels of gas condensate. Development began in 1997, with natural gas extraction starting in 2001 at around 2 million cubic meters per day.

In the past three decades, significant achievements have been made in developing the field using domestic companies, manufacturers, and contractors. The completion and operation of 27 standard phases have increased Iran's crude gas production from the field to over 700 million cubic meters per day.

Key milestones include the installation of the largest platform in South Pars Phase 11 and the signing of a memorandum to increase ethane extraction from nine South Pars refineries by 1 million tons annually.

 Pressure boosting: a strategic priority

The Ministry of Petroleum has prioritized the South Pars pressure boosting project, aimed at maintaining field pressure, sustaining production rates, preventing gas migration to Qatar, and managing the country's gas balance.

Four major contractors—Petropars, OIEC, Khatam al-Anbiya Construction Headquarters, and MAPNA—are set to execute the project, with contract negotiations underway.

Increasing oil production

The 14th administration has taken numerous steps to maintain and increase crude oil production, including boosting output by 70,000 barrels per day in the National Iranian South Oil Company's fields through well services, resolving processing issues, and completing major repairs.

Other measures include increasing production in the Aghajari Oil and Gas Company's fields by 24,000 barrels per day, preventing a 50,000-barrel-per-day decline in Gachsaran Oil and Gas Company, and increasing production in the Karoun Oil and Gas Company by 18,000 barrels per day.

Collecting associated petroleum gas: a growing focus

Since the revolution, numerous projects have been completed to collect flare gas, aiming to add value and reduce environmental pollution.

Key projects include the construction of gas and liquid gas plants, gas injection projects, and the reduction of gas flaring and SO2 emissions in eight refineries in the South Pars gas complex.

The 14th administration has also advanced projects to collect associated gas, including the commissioning of the Maroon 5 (Asmari Sweet) gas collection project and reducing flaring by 45 million cubic feet per day through the Gachsaran 2 pressure boosting station.

This is the story of a great nation that, through unity and solidarity, has overcome challenges and taken significant strides toward progress and development. Iran's oil and gas industry continues to shine as a beacon of national achievement, driving the country forward in the global energy landscape.