Speaking on Monday at the specialized session on "Innovative Financing Methods in the Tech-Based Ecosystem of the Oil Industry" during the Third Petrotech Conference, Mehdi Hassanzadeh highlighted the role of the Oil Research and Technology Fund as a specialized entity supporting innovation and technological projects in the oil sector.

He noted that the fund was established in 2011, distinguishing itself from other research and technology funds by focusing exclusively on the oil and energy industry.

Hassanzadeh stated that the fund provides various financial services and guarantees to knowledge-based companies. One of its key objectives is to develop monitoring and facilitation tools that streamline the financial and operational processes of projects.

Financial support for tech-based projects

 Addressing the growing volume of guarantees issued by the fund, Hassanzadeh noted that in the Iranian year of 1402 (2023), the fund provided over 550 trillion rials in guarantees to oil industry companies, a figure expected to exceed 700 trillion rials this year.

He also highlighted the fund’s expanding service coverage among companies operating in the oil sector, emphasizing its commitment to meeting the diverse needs of universities and industrial firms.

With a focus on pioneering efforts and supporting startups, Hassanzadeh stated that the fund aims to provide financial assistance to technology-driven projects and foster new collaborations, particularly in the oil and energy sectors.

Supporting NTBFs for sustainable oil industry growth

The fund's primary mission is to facilitate investment in large-scale projects, Hassanzadeh said, adding that it collaborates with the Vice Presidency for Science and Technology and other relevant institutions to develop new financial instruments for oil projects.

He stressed that one of the biggest challenges for new technology-based firms (NTBFs) is the lack of sufficient financial and credit support. To address this, the fund offers guarantees and financial assistance to ensure project implementation. A newly developed tool for this purpose is revenue-based project financing.

Hassanzadeh also called for a more strategic, government-backed approach in this sector, noting that the Oil Research and Technology Fund, as a specialized institution, seeks to support NTBFs, promote sustainable development in the oil industry, and reduce financial barriers to project execution.