NISOC signs 30 investment contracts to boost production, reduce flaring

TEHRAN- The Director of Investment and Business Development of the National Iranian Oil Company said: With the aim of increasing production, reducing gas flaring, and developing operational capacities, more than 30 investment contracts have been signed in National Iranian South Oil Company (NISOC).

According to SHANA quoting the NISOC, Amir Moghiseh, during a visit to the investment plans and projects of the company, referring to the growing trend of private and non-governmental sector participation in the oil industry, stated: These projects are being implemented with the aim of increasing production, reducing gas flaring, developing processing capacity, and strengthening the country's drilling capability.

Stating that the National Iranian South Oil Company, as the largest crude oil producer in the country, has been a pioneer in developing private sector participation in the upstream oil industry, he added: In the second half of last year, the trend of signing investment contracts grew significantly, and these contracts are focused on three main axes: collecting associated gases and extinguishing flares, crude oil processing, and providing onshore drilling rigs.

The Director of Investment and Business Development of the National Iranian Oil Company said: In the field of collecting associated gases and flare gases, 23 contracts have been signed with the private and non-governmental sectors, the implementation of which will provide the basis for extinguishing 57 flares in Khuzestan province.

Moghiseh added: The implementation of these contracts has not stopped, and it is predicted that by the end of this year, about 400 million cubic feet of associated gas will be collected. Also, during Government Week, 40 million cubic feet of flare gas in the Khuzestan area will be collected and prevented from being burned.

Increasing processing capacity by 380,000 barrels

He cited contracts for purchasing crude oil processing services using skid-mounted rapid-installation equipment as the second axis of cooperation with the private sector and said: In this sector, seven contracts have been signed for seven oil fields, the implementation of which will add 380,000 barrels per day to the country's oil processing capacity.

The Director of Investment and Business Development of the National Iranian Oil Company continued: This capacity is equivalent to about 11 to 12 percent of the country's oil processing capacity, which will be created with the participation of the private and non-governmental sectors.

Moghiseh, referring to the progress of some projects in line with or ahead of the schedule, added: With the continuation of support and cooperation of investors, it is possible to bring some of these projects into operation earlier than the scheduled date.

Providing services for 18 onshore drilling rigs

He cited the provision of onshore drilling rig services as the third axis of investments and said: Providing these services is one of the prerequisites for development, increase, and maintenance of production in the country's onshore oil fields.

The Director of Investment and Business Development of the National Iranian Oil Company added: The National Company of South Oil-Rich Regions, within the framework of public-private partnership contracts, has assigned the provision of services for 18 onshore drilling rigs to the private and non-governmental sectors.

Moghiseh, referring to the first onshore rig supplied under the guaranteed purchase scheme for onshore drilling rig services, said: This rig was supplied and brought into the country with private sector investment and is currently being set up, and will soon begin drilling operations in the Ab-Teymour field.

Emphasizing the support of the National Iranian Oil Company for the presence of the private sector in the upstream oil industry, he stated: Utilizing the capacity of the private sector in upstream projects can pave the way for increasing production and strengthening the capacities of the oil industry in the next 5 to 10 years.

The Director of Investment and Business Development of the National Iranian Oil Company added: The investments made in this field, in addition to increasing production, can have positive effects in terms of employment, development of operational capacities, and increasing the country's foreign exchange earnings.

Moghiseh said: Based on the plan presented by investors, it is predicted that in the next two to three months, a significant number of additional rigs will be supplied and brought into operational areas.

EF/MA