Nasrollah Zarei pointed to the historical reliance of Iran’s budget on oil, stating: “Despite efforts by various administrations to reduce this dependence, the narrative of ‘oil as the engine of economy and development’ remains an undeniable reality.”

He noted that development in the oil sector itself drives the industry, warning: “If developmental goals—particularly in upstream operations—are not met, the country’s economy will face significant turbulence, affecting livelihoods and overall progress.”

Under the Seventh Development Plan (2024-2028), Iran aims to increase oil production to 4.8 million barrels per day and gas output to 1.34 billion cubic meters daily, Zarei said. Of this, a daily increase of 1.08 million barrels from shared oil fields is part of the broader production boost.

Given current production levels and natural field decline, he added, about 1 million barrels of oil and 350 million cubic meters of gas per day require new projects and contracts—a major responsibility for the government and the Oil Ministry.

Zarei stressed the need for reforms and large-scale investment, calling an upcoming oil industry investment conference the “first step in this strategic path.”

He noted that in a year declared by the Supreme Leader as “The Year of Investment for Production,” all sectors must work toward this goal. Recent contract reforms at the National Iranian Oil Company have improved investment appeal, and private sector engagement is expected.

Citing other oil-producing nations’ experiences, Zarei suggested offering part of NIOC’s shares in the capital market to reduce government size, boost public economic participation, and absorb liquidity. This would strengthen domestic markets and, if conditions allow, could extend internationally.