These efforts yielded remarkable results, including a surge in oil and gas production and the signing of a $17 billion pressure-boosting contract for the South Pars gas field.

Iran has long been recognized for its abundant natural resources and underground wealth, providing a strong foundation for human capital development. With over 1.2 trillion barrels of oil-equivalent hydrocarbon reserves, the country holds a prominent position among fossil fuel producers. Since its inception, NIOC has prioritized maximizing hydrocarbon extraction and leveraging advanced oil and gas technologies to enhance crude oil and gas output. 

To date, the application of modern technologies has enabled the extraction of approximately 340 billion barrels of oil-equivalent reserves. At current production rates, these reserves are projected to last for another 100 years. This estimate is based on a 25% recovery rate, which is expected to rise with technological advancements and research-driven improvements in Iran’s oil and gas sector. 

In 1403, under the new administration, NIOC focused on structural priorities, implementing targeted plans to maximize oil and gas extraction while boosting exports. This strategy aimed to enhance productivity, stimulate economic growth, and support comprehensive national development programs.

Key objectives included increasing production capacity, completing development projects in shared fields like South Pars and West Karun, diversifying oil sales through private sector participation, and fostering a knowledge-based oil economy amid sanctions. 

Despite tightening sanctions and geopolitical challenges, Iran’s oil industry has demonstrated resilience, relying on its skilled workforce and experience to navigate critical junctures. The continued global sale of Iranian oil and the signing of the South Pars pressure-boosting contract—a technically complex and vital project—underscore the industry’s strength. 

 Notable achievements

- Record oil, gas production: Daily crude oil output rose significantly, particularly in southern oil-rich regions, West Karun, and the Arvandan Oil & Gas Company. New wells and desalination projects also contributed to the increase. 

- Gas production surge: NIOC prioritized winter gas supply, adding over 30 million cubic meters per day (equivalent to the consumption of two provinces) before peak demand. In February 2024, gas delivery to the national grid hit a historic high of 870 million cubic meters per day. 

- South Pars milestone: The offshore facilities achieved a record daily production of 716 million cubic meters of rich gas. 

- Central Iran gas hub: The National Iranian South Oil Company (NISOC) set a winter production record of 248 million cubic meters per day, supplying 25% of the country’s gas. 

- Key project launches: 

  - The Cheshmeh-Khosh pressure-boosting station became operational. 

  - Phase 2 of the Ahvaz centralized desalination unit (110,000 bpd capacity) began operations. 

  - Development of the Yadavaran oil field (targeting 42,000 bpd) and Azadegan Phase 2 (expected to reach 550,000 bpd) progressed. 

  - Three western oil fields—Somar, Saman, and Dalavaran—entered development, with an estimated 410 million barrels of in-place oil. 

 $17b South Pars pressure-boosting contracts 

In March 2024, NIOC signed seven major contracts worth $17 billion to enhance output from South Pars, projected to generate $780 billion in revenue by 2051. Over 70% of the project’s supplies will be domestically sourced, creating 17,000 direct and 50,000 indirect jobs. President Masoud Pezeshkian emphasized the project’s role in ensuring stable gas supply and preventing winter shortages. 

 Investment, financing 

NIOC secured a $3 billion loan to increase crude production by 250,000 bpd, raising total output to 2.189 million bpd. New financing mechanisms, including oil-backed securities and public-private partnerships, were introduced to attract investment. Over 100 investment packages are under negotiation, with an upcoming event in April 2024 to unveil 200 upstream opportunities. 

 Social responsibility 

NIOC committed to 621 social projects worth 28.24 trillion rials ($56 million) in 2023, focusing on underdeveloped regions near oil and gas fields. In Khuzestan Province alone, over 13 trillion rials ($26 million) was allocated for community development. 

NIOC’s achievements in 1403—from record production to strategic contracts—highlight the dedication of its workforce and the industry’s ability to thrive despite challenges. By leveraging domestic expertise and innovative management, Iran’s oil sector continues to play a pivotal role in the nation’s economy. 

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