The Iranian oil industry, as one of the pillars of the country's economy, has undergone remarkable transformations over the more than four decades since the victory of the Islamic Revolution.

This industry has not only played a key role in the production and export of oil and gas but has also taken significant steps in advancing technology, achieving industrial independence, and meeting the country's energy needs.

However, alongside these achievements, there have been challenges and shortcomings that, if identified and addressed, can illuminate the path forward for this industry. In a series of interviews with a group of oil industry managers and experts, SHANA sought answers to two key questions:

1- What has been the most significant achievement of Iran's oil industry over the past 46 years?

2- What is the most important measure that has been neglected during these years?

The fifth part of the interviews with senior oil industry managers follows:

Ahmad Mohammadi, CEO of National Iranian South Oil Company (2018–21):

The most significant success of the oil industry post-Revolution has been the development of domestic human and managerial resources, replacing foreign expertise. This is our greatest achievement. In other words, we have effectively grown the knowledge and human capital of the oil industry within the country.

However, there are many areas where we have fallen short. Most countries strive to optimize the use of their resources, capacities, and advantages. Iran's advantage lies in its vast oil and gas reserves, yet we now face gas shortages and numerous oil-related challenges. Why did this happen? 

The answer lies in the disorganized and chaotic management of the oil industry at the macro level. While excessive and inefficient consumption is a primary issue, other oil-rich nations also subsidize their populations but have not faced the same fate. The root of our problems is the inadequate utilization of domestic expertise in decision-making, planning, and macro-management. This has led to the migration or withdrawal of industry experts. How many of our presidents' advisors in recent decades had oil expertise? 

In the absence of oil specialists in governance, governments have focused on peripheral and low-priority issues, neglecting the management of the oil industry. As a result, the era of fossil fuels is ending, and we still have vast untapped resources that we lack the capacity to extract.

Ali Akbar Shabanpour, CEO of Pars Oil and Gas Company (2013–16):

The development of the South Pars shared field, initially through foreign investment and later using resources from the National Development Fund, was the most significant achievement post-Revolution. This project not only secured Iran's share of the field but also led to the establishment of petrochemical units, the development of large-scale industries, and the domestic production of refinery equipment and offshore platforms.

The involvement of international oil companies in the early phases of South Pars, guided by targeted planning by the Ministry of Oil, resulted in valuable outcomes such as knowledge transfer, the empowerment of domestic contractors, and advancements in offshore drilling and pipeline installation. Despite international sanctions, the development of subsequent phases and petrochemical projects continued relatively successfully.

However, the lack of favorable conditions for foreign investment and access to advanced technology has caused significant damage to Iran's oil industry in recent years. After the 2015 nuclear deal (JCPOA), several valuable contracts were signed, including the development of Phase 11 of South Pars and the modernization of old refineries. However, the U.S. withdrawal from the JCPOA and subsequent sanctions led to the departure of foreign companies, leaving many agreements unimplemented.

Another critical issue is the unjust accusations against dedicated and patriotic managers, which has demoralized the industry. It is disheartening to see individuals who devoted their lives to the industry being wrongly blamed for energy imbalances or other national problems.

Afshin Javan, Director General of OPEC Affairs (2020–23):

The most significant achievement occurred in the late 1990s and early 2000s with the development of South Pars gas field phases. Through strategic energy policies, precise planning, and securing necessary investments, Iran accelerated the development of this shared field with Qatar.

The completion of several phases increased Iran's gas production capacity, enabling the country to claim a larger share of the field. This development not only met domestic gas demand but also spurred the growth of related industries, including petrochemicals, power plants, and industrial units. Key infrastructure, such as new refineries and gas transmission networks, was also strengthened, boosting productivity, reducing fuel imports, and creating jobs in southern regions.

However, greater flexibility in investment policies and smarter strategies to attract foreign capital could have allowed Iran to keep pace with Qatar in developing this massive gas field. Qatar, with its extensive financial resources and international partnerships, secured a larger share of the field and solidified its position in the global gas market. In contrast, Iran faced obstacles such as international sanctions, legal and bureaucratic challenges, and internal pressures, which slowed the field's development.

Pirouz Mousavi, CEO of Iranian Oil Terminals Company (2011–18):

One of the oil industry's proudest achievements is the uninterrupted production and export of oil during the Iran-Iraq War, despite enemy attacks. Post-war, the industry was quickly rebuilt and returned to its development path. Gas supply to cities, villages, industries, and power plants significantly increased, improving public welfare. In South Pars, Iran achieved parity with Qatar and even surpassed its rivals in some areas. The petrochemical industry also saw remarkable progress, with increased production, exports, and the localization of technologies strengthening national independence.

However, despite vast gas reserves, Iran's gas exports remain limited, highlighting weaknesses in export policies. In the petrochemical sector, the sale of base products like methanol, rather than developing value chains, has resulted in lost economic opportunities.

Key challenges include declining pressure in gas fields like South Pars, making pressure-boosting projects an urgent priority. The lack of foreign investment and advanced technology has also hindered Iran's competitiveness in shared fields. The Vision 2025, which set ambitious goals, has fallen short due to managerial and planning challenges. Additionally, the migration of skilled professionals due to unfavorable conditions has dealt a heavy blow to the industry.

To address these challenges, it is essential to focus on gas exports, complete value chains in petrochemicals, attract foreign investment, and implement pressure-boosting projects. Prioritizing renewable energy and retaining skilled human resources is also critical.