Development of upstream oil sector atop agenda: Zanganeh

August 18, 2019 - 18:57

TEHRAN - Iranian Oil Minister Bijan Namdar Zanganeh has said that the development of the upstream oil sector in collaboration with universities and research institutions is the ministry’s top priority in the current Iranian calendar year, 1398 (March 2019-March 2020).

“The first phase of developing the upstream sector includes boosting production and rising recovery rates in 20 oil and gas fields comprising 52 reservoirs in cooperation with universities and research centers,” the minister said.

In an order, Zanganeh appointed his deputy for research and technology, Saeed Mohammadzadeh, as the executive manager of the project underlining that it is the ministry’s priority within the framework of resistance economy in 1398.

Mohammadzadeh is accordingly required to submit regular reports on implementation of the project to research and technology department of the oil ministry.

Earlier this month, the National Iranian Oil Company (NIOC) Exploration Directorate signed four agreements with universities and knowledge-based companies to conduct research in a variety of oil-related areas including geophysics, geochemistry, unconventional hydrocarbon resources as well as drilling.

The Exploration Directorate is tasked by the oil ministry to sign seven research agreements, four of which have been signed.

NIOC Research and Technology Directorate also announced that it is going to conduct 25 major research projects worth nearly 700 billion rials (about $16 million) in two years.

Following a well-established plan, we will try to implement the projects in a parallel approach, during the current year and the next calendar year (March 2020-March 2021), Ebrahim Taleqani told Shana.

Taleqani also noted that other NIOC subsidiaries have also been tasked to increase their research activities and in this regard almost all of them are going to sign similar research agreements in near future.

Since the reimposition of the U.S. sanctions, Iran has been encouraging domestic companies’ presence in its oil and gas projects, in all sectors including research, exploration and development sectors. 

Currently about 300 knowledge-based companies are active in the field of oil industry in Iran.