Behzad Mohammadi noted Iran’s significant global position in energy reserves but said sanctions over the years have blocked foreign investors and technology providers, isolating the country from global and regional markets. "If this situation is not resolved soon, Iran will fall far behind in oil and gas development compared to regional and global competitors."

He pointed to the aging oil fields, stressing that the industry needs investment and modern technologies, particularly enhanced oil recovery (EOR/IOR) methods. Due to these challenges, Iran has lost ground to regional rivals in crude oil market share, prompting importers to seek alternative suppliers.

70% of Iran’s gas comes from South Pars 

Mohammadi cited Iraq’s plans to increase daily production to 6 million barrels by 2029, arguing that Iran should focus on measurable, quantitative goals rather than qualitative targets to accelerate development.

Discussing gas fields, he said over 70% of Iran’s gas supply comes from the South Pars reservoir, but the widening gap between production and consumption—across industries, commercial sectors, and households—poses a growing challenge. "Pressure decline in this field is a serious issue. Without intervention, we will face irreversible consequences."

Meanwhile, Qatar—Iran’s partner in South Pars—has boosted production with foreign investment, raising its LNG capacity from 77 million tons to 126 million tons by 2027. Onshore gas fields, with smaller reserves than South Pars, require modern technology to remain viable.

 Upstream oil industry underdevelopment affects petchem feedstock 

Mohammadi explained that underdeveloped upstream oil and gas sectors hinder petrochemical feedstock supply. "Creating 1 million tons of petrochemical capacity requires about $800 million in investment. With 12 million tons of idle capacity, $10 billion in investments sits unused, generating no revenue."

In recent years, major petrochemical holdings have invested upstream to secure feedstock, but Mohammadi argued capital should instead expand downstream value chains.

 Oil investment ‘a critical necessity, not a choice’

He stressed that top global firms’ high investments in Qatar, Saudi Arabia, and Iraq—such as a $25 billion project in Iraq and over $30 billion in Qatar’s LNG expansion—highlight the urgency for Iran to act. "We have little time left to preserve and develop our oil and gas industry."

To overcome upstream challenges, Mohammadi outlined key solutions: active energy diplomacy, technology transfer, strengthening exploration and production firms’ financial and technical capabilities, prioritizing key projects, and balanced value chain development.