Hamid Bovard, NIOC’s managing director, said during a ceremony to sign 12 contracts for gas flare collection in southern oil fields that the initiative is one of three key objectives in Iran’s Seventh Development Plan. The other two are boosting crude oil production to 4.5 million barrels per day and raising natural gas output to about 1.3 billion cubic meters per day, including through pressure-boosting projects.

Bovard said the company is working closely with private investors, both domestic and foreign, to implement these plans alongside government support.

 Expanding Production Through Private Investment

Regarding oil output, Bovard said NIOC is pursuing a 250,000-barrel-per-day production increase and an additional 520,000 barrels per day in processing capacity through 12 build-own-operate (BOO) contracts.

He said roughly $1.6 billion in gas production contracts were signed last month with major private energy consumers, including petrochemical and steel companies, as well as for the Gordian and Paznan-Madar gas fields. Three to four more contracts are expected to be finalized by year’s end.

 Gas Flare Recovery: A Government Priority

Bovard, who also serves as deputy oil minister, said contracts to capture 520 million cubic feet per day of flare gas have been finalized, with 12 symbolic agreements signed Saturday to collect about 300 million cubic feet per day. Eighteen more contracts are expected to be concluded soon.

“With these projects, nearly 90% of flare gas will be collected nationwide by the end of 2027,” he said, adding that five projects are operational, six are under construction, and 12 new ones were signed in this round.

A major feature of these projects, Bovard said, is the planned shutdown of 32 flare stacks across 12 production units in Khuzestan Province, including three large flares around Ahvaz (Ahvaz-1, 3 and 4), which have long affected the city’s environment.

 Energy Supply and Added Value

According to Bovard, the projects will inject more than 200 million cubic feet of light gas daily into the national grid and produce over 800,000 tons of gas liquids annually, providing feedstock for petrochemical plants and creating significant added value.

He said the initiative will prevent the release of about 30,000 tons of greenhouse gases per day — equivalent to cutting around 5,700 tons of carbon emissions daily — and will greatly reduce air pollution in Khuzestan.

Bovard also announced plans for Iran’s first mini-NGL plant in Ahvaz, developed with foreign partners. Due to sanctions, he did not disclose details but said installation would take six months, with the facility expected to become operational within 10 months.

 Call for Private-Sector Participation

Bovard said a new refinery in the Masjed Soleyman area is under construction and will collect 45 million cubic feet of gas daily when completed within 18 months.

He invited private investors to participate in upcoming tenders for flare gas recovery projects, noting that 18 new investment packages will be finalized by mid-December. “The door is open to all investors,” he said. “Contract durations range from six to 18 months, ensuring swift implementation.”

Bovard thanked the president, the oil minister, Khuzestan’s governor, and his colleagues in the oil industry for their support, expressing hope that the collaboration between the government and private sector will serve as a model for other fields.

“With unity and collective effort, we will turn Iran into a vast hub of production and energy,” he said. “Together, we can build a cleaner and more prosperous future for our nation.”