Iranian South Oil Company: country's oil industry moving towards product branding

Oil&Gas Materials 10 August 2020 16:43 (UTC +04:00)
Iranian South Oil Company: country's oil industry moving towards product branding

BAKU, Azerbaijan, August 10

By Elnur Baghishov – Trend:

As a result of the positive steps taken by the Ministry of Petroleum of Iran to boost domestic production, Iran's oil industry is moving towards the product branding, said managing director of National Iranian South Oil Company (NISOC) Ahmad Mohammadi, Trend reports citing the company’s official website.

Mohammadi made the remark at an event held in connection with the issuance of the first standard certificate for oil industry equipment and product quality by the Standardization Department of the Iranian Petroleum Institute.

According to the managing director, Iran is already moving from the production of spare parts to the production of equipment.

Mohammadi added that so far, NISOC has produced more than 15,000 units of equipment and products.

The director emphasized that the NISOC has taken a number of steps in the manufacturing of drilling and production equipment, gas turbines, equipment used in wells and similar products.

Mohammadi said that during an exhibition on the oil equipment industry held in Khuzestan Province last Iranian year (from March 21, 2019 to March 20, 2020), Iranian manufacturers were offered to produce 7,500 units and spare parts.

"So far, production of 70 percent of the equipment and spare parts has begun, and it is expected that production will be completed by the end of the current Iranian year," he said.

National Iranian South Oil Company, a subordinate of National Iranian Oil Company, operates 45 large and small hydrocarbon deposits in an area of 400,000 square kilometers from Iran's Bushehr Province to the north of Khuzestan Province. The company produces about 80 percent of Iran's crude oil and 16 percent of gas. The company reportedly produces about 3 million barrels of oil per day.

About 280 new wells will be drilled as part of the plan to maintain and increase production in 28 fields under the control of NISOC. It is planned to implement the program to maintain and increase oil production at 28 fields within two years. With the completion of this plan, the company's production will increase by 341,000 barrels per day. About $4.6 billion is required for the implementation of this plan.

Iran has 125 oil fields and 59 gas fields. The country's total hydrocarbon reserves are estimated at 836 billion barrels. With available technology and equipment, Iran can extract 239 billion barrels. Thus, 29 percent of the country hydrocarbon reserves are recoverable, while 71 percent remain underground.