Oil Ministry to define mega projects to use capacities of domestic equipment builders

November 27, 2021 - 16:8

TEHRAN – Head of the Iranian Petroleum Industries Equipment Manufacturers Association (IPIEMA) has said the Oil Ministry is going to define new mega projects in which equipment manufactured by the country’s oil equipment builders will be used, Shana reported.

Speaking in a press conference on Saturday, Majid Mohammadpour noted that 40 percent of the construction capacity of the members of the IPIEMA is empty, saying: “in order to completely use this domestic production capacity, new megaprojects in the oil industry are to be defined.”

Underlining the positive steps taken by the new government administration, Mohammadpour said currently 85 percent of the equipment used in the country’s oil, gas, and petrochemical industry are provided by domestic manufacturers.

The official noted that currently the knowledge for the production of 10 equipment groups including turbines, compressors, and catalysts have been indigenized and 10 new groups are also going to be added to this list in the near future.

According to Mohammadpour, in addition to supplying domestic needs of the country’s oil, gas and petrochemical industries, the equipment and parts manufactured in the country are also exported to other countries like Turkmenistan, Qatar, Venezuela, Iraq, and Syria.

Referring to the 25-year Iran-China Comprehensive Cooperation Plan, he stressed: "Preparations must be made in the industrial sector. With regard to many types of equipment, we have been able to build equipment similar to Chinese ones with lower prices, and we can be superior in this agreement."

The indigenization and domestic production of oil and gas industry equipment has been always among the objectives of the Iranian Oil Ministry. However, the issue became further highlighted since the re-imposition of the U.S. sanctions and Washington’s determination for cutting off the Islamic Republic’s ties with the world advances in knowledge and technology, especially in the oil and gas sector.

In the past few years, the ministry has been seriously supporting knowledge-based companies and startups, and several events, exhibitions, and panels have been held in this regard to encourage the mentioned companies’ contribution to the country’s oil and gas industry.

EF/MA

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