Speaking at a ceremony to sign investment contracts based on PPP frameworks,
Paknejad said the petroleum ministry is playing an active role as a regulator
and facilitator, despite tighter sanctions and operational challenges.
He said two sets of contracts were signed, one covering the guaranteed
purchase of drilling services and another focused on crude oil processing
services, describing them as the “two wings” needed to expand Iran’s crude
production capacity.
Under the drilling contracts, the National Iranian Oil Company (NIOC)
will guarantee the purchase of land drilling services over five years,
encouraging private and non-state investors to modernise the country’s drilling
fleet. The total value of the contracts, including auxiliary services, is about
$1 billion and will add 20 new drilling rigs, each with a capacity of 2,000
horsepower, Paknejad said.
He added that the expansion of the drilling fleet would accelerate
upstream oil and gas development, increase the number of new wells and generate
steady income and employment alongside higher output.
At the same time, Iran signed contracts to develop fast-installation,
skid-mounted crude oil processing units for six oilfields — Mansouri
(Bangestan), Ab-Teymour, Ramshir, Mansourabad, Karanj and Golkhari. Under the
build-own-operate (BOO) model, NIOC will purchase processing services worth
more than $1.7 billion over 10 years.
Paknejad said the construction period for these units is around 15
months, compared with up to 36 months for conventional fixed facilities,
allowing for faster field development. Once operational, the projects will add
315,000 barrels per day of new processing capacity, prevent production declines
of around 180,000 bpd and increase crude output by about 135,000 bpd.
Reviewing the performance of the petroleum ministry under the current
government, Paknejad said average crude oil production in December rose by
225,000 bpd compared with the start of the administration. He added that gas
production reached a new record of 1.114 billion cubic metres per day in
January, while output from the shared South Pars gas field hit a record 725
million cubic metres per day.
He said the use of new contractual models has opened upstream oil and
gas projects — previously dominated by large international oil companies — to
greater participation by private and non-state investors, helping safeguard
national resources, particularly in shared fields.
Paknejad said the newly signed contracts would also support job
creation, estimating around 11,500 direct and indirect jobs, and contribute to
broader economic welfare.
“This is the future path of Iran’s oil industry,” he said, adding that
the government would act as an enabler and regulator, with the private sector
as the main driver.
He also thanked President Masoud Pezeshkian for attending the
ceremony, saying the president’s support had strengthened morale among oil
sector employees and helped advance major national projects.