Speaking Monday, during a parliamentary session reviewing the first year of the plan’s implementation, Paknejad thanked members of the Energy Committee and the Program and Budget Committee for their detailed report on the Oil Ministry’s performance.

He said the ministry developed an operational roadmap and annual targets in coordination with executive and financial monitors appointed by the Supreme Steering Council and the Planning and Budget Organization. The plan’s assignments were divided into 26 major projects and communicated to relevant operational and administrative units.

Eight Executive Bylaws Approved

Paknejad said the ministry was responsible for drafting eight executive bylaws under the plan, all of which were prepared and approved by the Cabinet on schedule. Another 14 bylaws are being drafted jointly with other agencies and are under Cabinet review.

 Notable Growth in Oil Exports in 2025

According to Paknejad, the plan calls for a 9% annual growth in the oil sector. Despite achieving only 22% of the required financial resources in 1403, the oil and gas extraction value-added growth reached 6.2%, exceeding the country’s overall economic growth rate of 3%, according to the Statistical Center of Iran. He said crude oil and condensate exports showed significant growth in the first half of 1404 compared with the same period last year.

 Establishment of Oil and Gas Investment Account

The minister said that under Article 14(b) of the plan, an Oil and Gas Investment Account was created in 1403, with more than 49 trillion rials deposited by the National Iranian Oil Company and the National Iranian Gas Company. All deposits were allocated to oil industry projects, though the amount remains far below the sector’s needs.

He added that before being deposited, about 51 trillion rials from these resources were diverted by the Tax Administration and the Subsidy Organization to fund subsidies. This year, 56 trillion rials have been deposited so far, and the figure is expected to reach 90 trillion rials by year’s end.

 24 Oil Fields and 34 Gas Fields Offered to Investors

Under Article 15(b) of the plan, Paknejad said 24 oil fields and 34 gas fields have been introduced to domestic and foreign investors to help balance supply and meet industrial gas demand.

Following approval of the executive bylaw under the same article, four development contracts were signed with qualified domestic companies to produce about 32 million cubic meters of natural gas per day—equivalent to 3% of Iran’s total capacity—and 78,000 barrels of crude oil per day, or about 4% of total crude capacity.

 Production Indicators Surpass Targets

Paknejad said that through continuous efforts in development, production, flare-gas recovery, and stable fuel supply, all quantitative goals for the first year were met despite financial limitations. Crude oil and natural gas production in 1403 increased 8% and 3%, respectively, compared with the base year.

 Crude Oil Output Capacity Exceeds 4m Barrels Per Day

The minister said average crude oil production capacity last year reached about 4.15 million barrels per day, with actual production averaging 3.95 million barrels and gas condensate output at 750,000 barrels per day. Raw gas production capacity was estimated at 1.097 billion cubic meters per day.

He noted that shared-field output rose by 80,000 barrels per day, exceeding the 56,000-barrel target. Gasoline and diesel output also surpassed targets, averaging 110 million and 115 million liters per day, respectively.

 Progress in Flare-Gas Recovery Projects

Paknejad said both short- and long-term flare-gas recovery projects are being actively pursued. Performance reached 3.3 billion cubic meters of gas recovered, compared with the plan’s 1.5-billion-cubic-meter goal. Several new projects have recently come online, and additional contracts with private firms have been signed.

 Expanding Gas Storage Capacity

Under Article 44 of the plan, the Oil Ministry is tasked with increasing natural gas storage capacity. Current withdrawal capacity from the Sarajeh and Shurijeh reservoirs during the cold season stands at 30 million cubic meters per day. With the completion of the second phases of these facilities, capacity is expected to rise to 55 million cubic meters per day by the third year of the plan.

 Only 22% of Needed Resources Secured

Paknejad said the ministry is also working on structural reforms to separate regulatory and operational roles as required by Article 43(a). Expert committees have been formed, and discussions with the Administrative and Employment Organization are ongoing. The reform plan will be presented in 1405.

Due to limited time during the parliamentary session, written reports were submitted on other sectors, including petrochemicals, gas, and smart energy monitoring.

He concluded that while $27 billion was projected for the first year, only $5.5 billion—about 22%—was secured. “According to expert estimates, meeting all the objectives of the Seventh Development Plan will require approximately $190 billion,” he said.