Iran completely self-sufficient in upstream oil equipment

July 10, 2019 - 22:15

TEHRAN - Managing director of Iran’s Oil Industries Engineering and Construction Company (OIEC) said currently all the necessary equipment for the oil industry’s upstream sector are produced inside the country, IRIB reported.

Speaking in a signing ceremony with an Iranian company for providing oil field equipment, Gholamreza Manouchehri noted, “Although currently there is no particular problem in our oil production, and domestic and export needs are being met, we are focusing on increasing recovery factor of our fields in order to protect our interests in shared fields.”

Emphasizing the fact that despite the U.S. sanctions, Iran continues its development plans in the oil industry, Manouchehri said, “Beside their economic benefits, such plans will encourage domestic companies and create new job opportunities.”

The official further noted that currently Iranian companies are active in a variety of areas in the oil industry, saying “Supported by the Oil Ministry, domestic companies have been also engaged in the upstream sector projects.”

The OIEC managing director stated that some of the equipment used in upstream projects are being manufactured for the first time inside the country, adding that “following this path, I can say we are able to make all the equipment needed by oil industry’s upstream sector, inside the country.”

In August 2018, Iranian Oil Ministry passed a directive to ban the import of 84 items among oil industry equipment which could be produced inside the country.

“In line with the implementation of the Supreme Leader’s policies in supporting Iran-made products and in order to maximize the use of domestic products and services, main companies and their subcontractors (directly or indirectly) are prohibited from purchasing foreign products and equipment listed in the attachment of this notice”, the order read.

Wellhead equipment, desalinating packages, anti-corrosions, sulfur recovery catalysts, wellhead control panels and etc. were among the 84 items which are listed as banned items.
In May 2018, Donald Trump withdrew the U.S. from an international deal with Iran, formally known as the Joint Comprehensive Plan of Action (JCPOA), and in November the sanctions were reimposed on the country’s oil sector.

Since then, most of the foreign companies and manufacturers of oil industry equipment which were collaborating with Iran, cut their ties threatened by the consequences of having economic ties with Tehran.

Iranian oil industry, however, has been taking all necessary measures to push through the situation and withstand the pressures imposed by the sanction. 
In this regard, moving toward domestic production and constructing all the necessary equipment inside the country has been become a top priory for the Iranian oil ministry in the past few years.