Speaking on the sidelines of the second day of the 29th
International Oil, Gas, Refining and Petrochemical Exhibition in Tehran, Petroleum
Minister Mohsen Paknejad said Iran is "fully committed to pursuing
development projects across the value chain" and emphasized confidence in
domestic resources to achieve major milestones.
“We are not waiting for foreign investors,” Paknejad told
reporters. “With the backing of local expertise and capacity, we can take
significant steps forward.”
Resumption of Caspian Sea Drilling After Three Decades
The minister also announced the resumption of exploratory
drilling operations in the shallow waters of the southern Caspian Sea for the
first time in 30 years, marking a key milestone in the country’s upstream
ambitions.
Located 15 kilometers off the coast and in water depths of
70 to 75 meters, the Rodsar structure is targeted for drilling down to 5,000
meters below the seabed. The project, with an initial investment of $50 million
under an EPD contract, could potentially yield over 600 million barrels of oil
in place and about two trillion cubic feet of natural gas, based on preliminary
seismic and geological studies, he said.
While stressing that these figures are estimates, Paknejad
said further appraisal will be needed to confirm commercial viability. The
drilling will be conducted by domestic firms such as Khazar Oil and North
Drilling Company, utilizing the semi-submersible Iran Amir-Kabir platform.
Gas Network Stability Amid Harsh Winter
Reflecting on energy supply during the previous winter,
Paknejad said it was “one of the least challenging” in recent years. He
credited swift action by the National Iranian Oil Company, which added 30
million cubic meters per day to the country’s gas production capacity in a
short timeframe.
However, he noted that inefficient power plants drove up
fuel consumption, resulting in nearly $600 million in diesel imports during the
peak winter months. “Only $200 million of that was used for power generation.
The rest was essentially wasted,” he added, calling for cooperation from the
Energy Ministry to improve thermal efficiency.
Focus on Technology, Innovation, and Contracts
Paknejad called for a shift away from traditional exhibition
formats, urging more focus on innovation, AI, and new technologies. “We have
lagged behind in this area and must not fall further behind neighboring
countries,” he said, expressing hope for a more tech-centric showcase in future
editions with private sector involvement.
He also highlighted streamlined contract processes as a key
reform. “We have reduced the contract finalization timeline from several years
to just six months,” he said, crediting new mechanisms approved by the Economic
Council and direct support from the president and first vice president.
Energy Imbalance and Efficiency Campaigns
Addressing Iran’s long-standing energy imbalance, Paknejad
warned that growing demand has continually outpaced production increases,
despite various mitigation efforts. He called for public cooperation in
reducing consumption and pointed to last winter’s “Two Degrees Less” campaign
as a successful initiative.
“The core solution lies in demand-side management,” he said,
adding that the government must provide high-efficiency equipment and support
structural changes in energy use.
Future Outlook and Cautious Optimism
Looking ahead, Paknejad said Iran is targeting 4.58 million
barrels per day of crude production and 1.35 billion cubic meters of gas by the
end of the seventh development plan. He underscored that drilling operations in
the Caspian Sea are currently proceeding with local resources, but noted Iran
is open to international cooperation for technology transfer and investment —
excluding “one particular country.”
He declined to specify oil production and export volumes,
citing sanctions, and instructed officials not to release detailed figures.
“Our production and exports continue at full capacity and
without disruption,” he said.