Presenting a detailed report on the plan’s implementation before
lawmakers, Paknejad thanked the Energy Commission and the Plan and Budget
Commission for their comprehensive performance reviews. He explained that, in
coordination with supervisory and financial monitors appointed by the High
Council for Program Steering and the Plan and Budget Organization, the ministry
had broken down the plan’s macro goals into 26 major projects and distributed
the responsibilities across operational and headquarters divisions.
Legal and Administrative Implementation
Paknejad said that the ministry was responsible for drafting eight
executive by-laws, all of which were completed and approved by the Cabinet
within schedule. Fourteen additional by-laws, prepared jointly with other
agencies, are now in the approval process.
Oil and Condensate Exports Up Sharply
Under the Seventh Plan, the oil sector is expected to achieve 9%
annual growth. Despite securing only 22% of the required funds in 2024, the value-added
growth in oil and gas extraction reached 6.2%, outperforming the national GDP
growth of 3%, according to the Statistical Center of Iran. Paknejad added that
exports of crude oil and condensates during the first half of 2025
(March–September 2024) rose significantly compared with the same period the previous
year.
Oil and Gas Investment Account Established
In compliance with Clause (b) of Article 14 of the Seventh Plan, the Oil
and Gas Investment Account was created, with more than 49 trillion tomans
deposited by the National Iranian Oil and Gas companies in 2024. This year,
deposits have reached 56 trillion tomans and are expected to hit 90 trillion
tomans by year’s end.
However, Paknejad noted that around 51 trillion tomans of these funds
were diverted before deposit by the Tax Administration and Targeted Subsidy
Organization to cover subsidy payments.
58 Fields Offered to Investors
In line with Clause (b) of Article 15, 24 oil fields and 34 gas fields
have been offered to domestic and foreign investors to help address gas
shortages in industrial sectors. So far, four field development contracts have
been signed with qualified Iranian companies, aiming to add 32 million cubic
meters of gas per day (3% of total output) and 78,000 barrels of oil per day
(4% of total oil output).
Production and Export Achievements
Paknejad reported that oil and gas production targets for 2024 were
met in full:
- Oil
output rose 8%, and gas output increased 3% compared with the base year.
- Crude
oil production capacity averaged 4.15 million barrels per day, with
operational capacity at 3.95 million bpd and 750,000 bpd of gas
condensate.
- Gross
gas production capacity reached 1.097 billion cubic meters per day.
- Output
from shared oil fields rose by 80,000 bpd, exceeding the 56,000-bpd
target.
- Production
of gasoline and gasoil reached 110 million and 115 million liters per day,
respectively — both above targets.
Flaring Reduction and Gas Storage Expansion
In gas-flaring reduction, the ministry achieved 3.3 billion cubic
meters of recovery, more than double the planned 1.5 bcm. Additional flare-gas
recovery projects have been launched with private investors and are expected to
come online soon.
Regarding gas storage (Article 44 of the Plan), Paknejad said the Sarajeh
and Shurijeh fields currently supply 30 million cubic meters per day during
winter peaks. This capacity will increase to 55 million m³/d by the third year
of the plan as Phase 2 of both fields is completed.
Structural Reform and Outlook
Under Clause (a) of Article 43, the Oil Ministry is tasked with restructuring
to separate governance and operational functions. Expert committees have been
formed, and a reorganization plan will be submitted in 2026 (Iranian year 1405).
Paknejad concluded by emphasizing that, while only $5.5 billion — or 22%
of the $27 billion needed for 2024 — was secured, the ministry’s performance
demonstrates the resilience and efficiency of Iran’s oil sector under financial
and external pressures.
“Achieving the Seventh Plan’s full objectives will require about $190
billion in financing,” Paknejad said. “Yet even with limited funds, the Oil
Ministry has delivered on all quantitative commitments for the first year.”