TEHRAN - Director of National Iranian Oil Company (NIOC)’s Discovery Department said the private sector should be able to contribute to developing the country’s oil fields, IRNA reported on Saturday.

Speaking in the 3rd Iran International Exploration and Production Congress and Exhibition (Iran E&P 2019) in Tehran, Saleh Hendi noted that like the mining sector in which mines are being developed by the private sector, NIOC should also award oilfield development projects to capable private companies.

“Iran has huge resources of shale oil, shale gas and gas hydrates which have not yet been developed; exploration and development of these resources should be awarded to the private sector.” the official said.

"The private sector can well handle a significant part of the government's responsibilities in the oil industry," he said, adding that this could be initiated with small projects and small fields, and then move to bigger projects.

Earlier in December 2018, the official had said that National Iranian Oil Company will transfer exploration projects for oil and gas fields to domestic companies.

“Plans are underway to award exploration projects to domestic companies now that the U.S. is putting pressure on foreign companies to operate in Iran”, Hendi said in a press conference.

EF/MA