Ali-Akbar Nazari spoke on Tuesday, at the specialized meeting "Introducing Investment Opportunities in NGL, LNG, and Flare Gas Recovery" during the "Transformation in Investment and Development in Iran’s Upstream Oil and Gas" event.

He emphasized the importance of flare gas recovery and outlined NIOC’s new initiatives, including plans to transfer flare gas to qualified companies at a base price of zero. This program is a key part of the company’s strategy to conserve gas resources and reduce environmental pollution.

Nazari noted that a daily volume of 700 million cubic feet of flare gas has been divided into 35 separate packages. According to the plan, these gases will be fully recovered by the end of the Iranian calendar year 1408 (March 2029). If projects are not operational by the deadline, contract extensions may be granted.

As deputy director of feed gas, flare gas, and LNG project sales contracts in NIOC’s investment department, he highlighted investment opportunities but cautioned that under Iran’s Seventh Five-Year Development Plan and budget laws, NIOC is authorized to impose penalties if flare gas recovery projects are not completed on time. Penalties will apply once companies formally commit to project execution.

Addressing concerns about the short timeframe for project assignments, Nazari explained that since most of these gases are allocated for specific projects, NIOC has decided to offer this investment opportunity at a base price of zero to expedite flare gas recovery and maximize resource utilization.

He added that NIOC is ready to provide supportive incentives to facilitate investment and will review proposals from interested investors.

 Nine flare gas recovery contracts signed 

Mohammad Mansouri, deputy director of production at the National Iranian South Oil Company (NISOC), also announced new plans for flare gas management and recovery, stating that NIOC aims to introduce investment opportunities in NISOC, the Iranian Offshore Oil Company, the Central Oil Fields Company, and Arvandan Oil & Gas Company. The primary goal is to prevent national resource waste and reduce environmental impacts from gas flaring.

Mansouri outlined the terms for participating in flare gas recovery tenders, noting that technically and financially qualified investors can bid at a base price of zero and carry out recovery operations until main projects become operational. The recovered gas can be converted into valuable products, preventing resource waste and avoiding environmental penalties.

He expressed hope that these programs would achieve a flare gas recovery target of 800 million cubic feet per day by the end of 1405 (March 2027). So far, nine associated petroleum gas (APG) recovery contracts have been signed.

Mansouri urged investors with execution capacity to collaborate by quickly installing necessary equipment to significantly reduce gas flaring.

 New investment terms for flare gas recovery 

Issa Noveyri, head of research and development at Arvandan Oil & Gas Company, announced new plans for optimizing gas resource management in West Karoun, where approximately 220 million cubic feet of sour gas is produced alongside oil—146 million cubic feet of which belongs to Arvandan.

He detailed three investment packages—two-year, over two-year, and over four-year—each designed to optimize byproduct production. A major change in the program allows investors to export all produced goods, a restriction that previously existed.

Noveyri stressed that NIOC must conclude negotiations within four months and finalize contracts within two months.

He emphasized the environmental benefits of these projects, noting that gas prices will be set through auctions to attract investment while mitigating pollution from flaring.

Noveyri called on investors to act swiftly within the set timeframe to install necessary facilities and accelerate flare gas recovery.

He added that implementing this plan will return a significant volume of flare gas to the production cycle, reducing environmental pollution and enabling economic utilization and exports.