This report examines how these initiatives improve living conditions, foster trust between the industry and communities, and enhance health, education and cultural development. 

A key goal of the oil industry’s CSR projects is upgrading infrastructure in oil-rich regions and improving residents’ quality of life. By building and repairing roads, providing water and electricity, and constructing schools and medical centers, these projects have significantly benefited local populations. New schools, for instance, have given students in oil-producing areas access to better educational opportunities. 

Iran’s oil industry has a complex political and social history, marked by both progress and challenges. The discovery of oil led to modernization, bringing the country’s first sulfur processing plant, power generation facility, water treatment plant and other pioneering developments. 

This legacy reflects what is now known as CSR—a concept often neglected in the past, leaving communities near oil reserves to endure hardship despite their natural wealth. In recent years, however, the Ministry of Oil has redefined CSR as a priority, leading to new investments in water supply, road construction, schools and training centers in oil and gas regions. 

With over 115 years of experience since the first oil gushed in Masjed Soleyman, Iran’s oil industry has learned much about balancing industrial operations with social and environmental responsibilities. Initially focused on employee welfare, the sector gradually expanded its CSR efforts to include local communities and environmental protection. 

Today, the oil industry is once again bringing prosperity to oil-rich regions. Where infrastructure had deteriorated, new projects are restoring hope—delivering water to villages, replacing makeshift classrooms with proper schools and providing gas-powered heating to households. 

Oil industry leads in social responsibility 

The oil sector has emerged as a CSR leader among peer organizations, integrating social responsibility into its corporate culture. By addressing economic, social and environmental needs, the industry has committed to improving living standards, protecting stakeholders’ interests and fostering ethical practices. 

This commitment has positioned Iran’s oil industry as a model of sustainability, accountability and transparency. Globally competitive, the Ministry of Oil now allocates up to 4% of development project budgets to CSR initiatives in oil and gas regions, underscoring its dedication to environmental stewardship, equitable employment, community welfare and ethical operations. 

Nearly 440 CSR projects completed in seven months 

While CSR in Iran’s oil industry has evolved over the years, the 14th administration has accelerated project implementation since taking office. More than 438 CSR projects—covering education, sports, health, roads, water and electricity—have been completed, with investments exceeding 15.8 trillion rials. 

Prior to 2021, over 4,560 CSR projects worth 26 trillion rials were executed in oil-rich areas. From 2021 to the start of the 14th administration, an additional 4,280 projects, valued at 82 trillion rials, were undertaken. In total, the Oil Ministry has allocated over 109 trillion rials to CSR initiatives. 

CSR efforts by subsidiaries of the Oil Ministry are now integral to sustainable development, emphasizing stakeholder engagement and community benefits. Given the oil industry’s economic significance and multibillion-dollar projects, a portion of each project’s budget is legally mandated for public welfare programs, particularly in oil and gas regions. Over the past 46 years, the Ministry of Oil has prioritized this approach, implementing numerous initiatives to support local development.