Iran Oil Minister Urges Faster Implementation of Development Law, Vows Commitment to Reform Targets

Iran Oil Minister Urges Faster Implementation of Development Law, Vows Commitment to Reform Targets
(Sunday, December 21, 2025) 16:20

TEHRAN, Dec 20 (NIPNA) – Iran’s petroleum minister said on Saturday that the Petroleum Ministry remained committed to meeting the targets of the country’s Seventh Five-Year Development Plan and called for faster implementation of a key legal provision aimed at expanding private sector participation in upstream oil and gas projects.

Mohsen Paknejad told a meeting of senior petroleum ministry officials that the ministry would honour its commitments through the end of the 14th administration, stressing the need to accelerate enforcement of Article 15, clause (b), of the development plan.

Paknejad said the oil sector was viewed by policymakers as the “front line” of Iran’s economic strategy, adding that expectations were high for the ministry to help drive growth despite structural and financial challenges.

“The Seventh Development Plan is the covenant of the 14th administration,” he said, according to state media. “We must focus our time and energy on implementing it to smooth the path of national development and economic expansion.”

He said the National Iranian Oil Company had the technical, engineering and legal capacity to design robust contracts under Article 15 that would safeguard state interests while allowing greater participation by qualified private companies.

Paknejad said proper contract design was essential to ensure competitiveness and prevent the entry of underperforming firms, while ultimately benefiting the national oil company.

Under clause (b) of Article 15 of the Seventh Development Plan, the Petroleum Ministry is required to use competitive mechanisms to assign exploration, development and production activities in oil and gas fields – particularly shared and gas fields – to qualified companies, without transferring ownership or sovereignty. The law targets offering at least 2% of Iran’s oil production capacity to non-state operators by the end of the third year of the plan and at least 5% by the end of the programme, with a higher threshold set for gas production.

Paknejad said greater private sector involvement could also help attract skilled young professionals who lacked opportunities in the public sector, strengthening motivation and capacity across the industry.

He said the ministry would continue to monitor progress closely and called for the preparation of a clear roadmap to ensure full implementation of Article 15.

 


Email is required
Characters left: 500
Comment is required