With tough sanctions still effective, foreign companies from around the globe attended this year’s annual oil show in Tehran. Foreign companies, particularly the Chinese ones, showcased a pronounced eagerness to engage, viewing Iran’s oil and gas industry not merely as a market but as a strategic partner for growth and innovation. Their presence, ranging from first-time participants keen to explore the landscape to seasoned veterans looking to expand existing ties, highlighted the dynamic and evolving nature of international engagement despite prevailing complexities.
Why We Came
For many, the Iran Oil Show 2025 represented a maiden voyage into a market brimming with potential. Among the enthusiastic newcomers was Jason Jiang, Sales Manager at China’s Crown Extra Lighting Co. from Changzhou. While his company had previously explored opportunities in regional hubs like Dubai and Oman, their participation in Tehran marked a significant strategic pivot.
"This is our first time in this exhibition," Jiang told “Iran Petroleum”, his voice reflecting a blend of excitement and curiosity. His firm specializes in lighting solutions applicable across the oil, gas, and chemical industries, a niche perfectly suited for Iran’s expansive resource base. "I have heard a little about this [investment package] and this is why we are here in Iran," he affirmed, linking his company’s presence directly to the recently unveiled package of 200 investment opportunities. This ambitious initiative, inviting both Iranian and foreign companies to study and contribute to projects worth over $137 billion, served as a powerful magnet for new entrants.
While “Crown Extra Lighting” had not directly operated in Iran previously, their products have found their way into Iranian projects indirectly through collaborations with major Chinese petroleum companies like Sinopec and China National Offshore Oil Corporation (CNOOC), which have established a footprint in the country. This existing, albeit indirect, connection offered Jiang’s company a valuable insight into the operational environment.
Evaluating their inaugural participation, Jiang was markedly positive. “We learn about the Iranian market here because we have been in touch with many customers in the last few days,” he observed. The company’s booth saw a steady stream of visitors, demonstrating a clear interest in their specialized products. “They visited our booth and showed their interest in our products. They have sent us several inquiries in the first two days.” This immediate and tangible engagement underscored the exhibition’s efficacy as a direct conduit for market exploration and lead generation, reinforcing the decision to participate for the first time. The experience provided “Crown Extra Lighting” with invaluable direct feedback and established foundational relationships for future business endeavors in a market they now recognize as incredibly “rich”.
Extending Business Now
In contrast to the first-time enthusiasm, some foreign companies returned to the Iran Oil Show, building upon previous engagements and deepening their commitment to the Iranian market. Frank Gao Diliang, International Business Department Director at Jiali Technology from Hangzhou, China, was one such returning participant, having previously attended the Iran Oil Show 2024. His presence signaled a strategic continuity and a proactive approach to expanding established business ties.
Jiali Technology, a specialist in centrifugal pumps used extensively in the petroleum industry for crude oil and finished product transportation, recognizes the critical role their equipment plays in Iran’s energy infrastructure. Our company specializes in centrifugal pumps. Used in the petroleum industry, the crude oil transportation, all the finished product transportation,” Frank explained, emphasizing the core of their offerings”. His company already boasts a strong trade partner in Iran, laying a solid groundwork for their expansion efforts. “So, we want to extend our business now,” he stated, articulating a clear objective for their repeated presence.
Frank confirmed awareness of Iran’s new investment package but admitted to not knowing the intricate details, highlighting a common challenge for foreign firms navigating complex market information. However, the general knowledge of significant investment opportunities was clearly a driving force for their return. “Jiali Technology” has also implemented projects in other regional countries, notably Iraq, showcasing their regional experience and adaptability in diverse Middle Eastern energy landscapes.
Assessing their participation, Frank remained optimistic despite a slight dip in visitor numbers on the third day compared to the initial days. “I think it is good, good,” he remarked. “Yesterday and the first day, there were many, many customers to visit our booth.” This consistent flow of interest indicated a robust demand for their specialized equipment. When questioned about obstacles beyond sanctions, Frank candidly identified “payment, Banking problems” as a key hurdle. “We need some facilitation about the payment, the ways of payment for Iran,” he urged, pointing to a practical area where improvements could significantly streamline business operations for international partners. Despite this challenge, Jiali Technology’s commitment to extending its business in Iran remains unwavering, underscoring the perceived long-term value and strategic importance of the market.
Conditions Conducive to Investment
Another significant Chinese presence was Jenny Zhu, Foreign Trade Commissioner of Yangzhou Panstar Heat Exchanger Equipment Co., also making their debut at the Iran Oil Show. Her company, a major Chinese factory, specializes in the production and manufacturing of plate heat exchangers—equipment vital for refining processes in the oil and gas industry.
“Yes, this is our first time,” Zhu confirmed regarding their participation, joining the ranks of new entrants eager to tap into Iran’s vast energy potential. Like her counterparts, she was aware of the 200 investment opportunities package, signifying the broad reach and impact of this initiative in attracting foreign interest. Panstar’s products are “widely used in the oil and gas industry, especially refining companies,” aligning perfectly with Iran’s stated need for investment in its downstream sector, which targets about $80 billion for 1.5 mb/d in refining capacity. “We hope we can offer our equipment to your country,” Zhu expressed, outlining a direct and pragmatic approach to collaboration through equipment supply.
Domestically, there is great demand for Panstar’s products in China, and they have also found a significant market in Russia, demonstrating their established expertise and global reach. When asked about the exhibition’s performance over the initial days, Zhu’s assessment was effusive. "It is very valuable, very potential. Very nice. Professional. The oil exhibition is professional," she enthused, her words painting a picture of a well-organized and highly relevant event that resonated with her company’s strategic objectives.
Perhaps one of the most striking insights came when Zhu was asked about obstacles beyond sanctions. Her response was definitive: "No. No special obstacle. You see that the ground is paved for you to work with Iran." This bold statement reflects a perception that, despite external pressures, the underlying market conditions and the receptiveness of the Iranian side are highly conducive to business. It suggests that for some, the potential rewards and the clear opportunities outweigh perceived barriers, indicating a strong belief in the viability and profitability of operations in Iran. This perspective offers a powerful counter-narrative, emphasizing the readiness and ease of engagement for companies willing to explore the market directly.
Roaring Trade
The international flavor of the Iran Oil Show 2025 was further enriched by the presence of European firms, often operating through their Asian branches to navigate the complexities of the market. Daniel Hu, Sales Manager of the Chinese branch of Erreesse Valve, headquartered in Grignasco, Italy, represented one such significant participation. This marked Erreesse’s first visit to Iran, a strategic move driven by a clear directive from its European headquarters.
"Yes, first time. First visit to Iran," Hu confirmed, highlighting the company’s proactive step into the Iranian market. His evaluation of the exhibition was overwhelmingly positive. "I think it's a very fantastic exhibition. There are many specialist experts and many businesses in here," he remarked, appreciating the high caliber of attendees and the vibrant business environment. This observation underscores the event's success in attracting key decision-makers and facilitating meaningful interactions.
Hu acknowledged awareness of Iran’s recently unveiled investment opportunities in the oil industry and expressed a strong desire for cooperation. “Of course... Erreesse is a European company, and even the headquarters is not easy to do business with Iranians. But headquarters ask us; actually, we are the Erreesse China branch. And they asked us to attend this exhibition. They want to do business with Iran. So they ask us to do this, to attend the exhibition and do business directly with Iranians,” he revealed. This candid insight illustrates a deliberate and strategic decision by a European company to leverage its Chinese branch to directly engage with the Iranian market, demonstrating a clear appetite for business despite perceived logistical challenges from its main headquarters.
“Erreesse Valve” is a specialized equipment manufacturer, providing “well equipment” to the industry. This focus positions them perfectly to contribute to Iran’s upstream sector, which is slated for a major boost, aiming for a production plateau of 5.7 mb/d of crude oil and 1.5 bcm of gas, necessitating substantial investment and technological upgrades. The company is already highly active in other Middle Eastern countries, as well as Russia and Southeast Asia through its China factory, demonstrating a robust track record in diverse and complex markets. This experience provides “very valuable experience to be present in the Iranian market,” as Hu affirmed.
When asked about other obstacles beyond sanctions, Hu’s response echoed a determined resolve. “Actually, there is no difficulty for us. We will try our best to do all the effects for business with Iran,” he declared. This statement underscores a profound commitment and a proactive approach to overcoming any potential challenges, reflecting a confidence in their ability to successfully operate and contribute to Iran’s energy landscape. The enthusiasm and determination shown by Erreesse Valve’s Chinese branch highlight the strong pull of Iran’s market for international players.
A ‘Treasure Trove’ of Opportunity
The 29th Iran Oil Show 2025 proved to be more than just an exhibition; it was a clear signal of Iran’s unwavering commitment to revitalizing its energy sector and fostering international partnerships. The event followed closely on the heels of the National Iranian Oil Company’s (NIOC) “Transformation in Investment and Development in Iran’s Upstream Oil and Gas” conference, which highlighted 200 projects worth over $137 billion. These opportunities span both the upstream sector (around 100 projects in oil fields) and the broader oil industry value chain (another 100 projects).
Iran, ranking first globally in combined oil and gas reserves, recognizes its oil industry as the main focus of its economic development and a pivotal source of government revenue, public welfare, and value creation. Despite experiencing setbacks over the past two decades due to economic sanctions and a lack of strategic investments, the sector remains the “driving force” of the Iranian economy.
The exhibition served as a crucial platform to address the investment drought that has affected Iran’s competitive edge and led to imbalances in energy, monetary, and banking systems. By showcasing the latest innovations, technologies, and industrial solutions, the Iran Oil Show aims to play a vital role in the country’s economic development and the prosperity of its energy sector. The average recovery rate from Iranian oil fields currently stands at about 25 percent, significantly lower than the 50 percent achievable with current global development technology and more than 40 percent in Persian Gulf countries like Iraq. With most of Iran’s oil wells in the second half of their lives and an automatic annual production drop of eight percent, the need for advanced technologies and foreign expertise is paramount.
The palpable enthusiasm from both first-time and returning foreign participants, particularly from Chinese and other foreign firms, highlighted a growing confidence in navigating the Iranian market. Their proactive engagement and candid discussions about opportunities and challenges underscore a shared vision for long-term collaboration. The sheer volume of companies, the expanded exhibition space, and the clear statements of intent from foreign representatives cement the Iran Oil Show 2025 as a resounding success and a hopeful harbinger of increased international investment and technological exchange in Iran’s vital oil and gas industry. The exhibition provided a powerful affirmation that despite external pressures, the “ground is paved” for mutually beneficial partnerships and sustained economic growth.
Reza Abesh Ahmadlou
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