TEHRAN (Iran News) – TEHRAN Oil Minister Bijan Zanganeh says Iran has progressed well during the sanctions era and gained self-sufficiency in the oil and gas fields and now it has upper hand for new talks with foreign oil and gas companies for cooperation.

Speaking in the signing ceremony of contracts for retaining and increasing oil output, Zanganeh said that if foreign oil and gas companies come to Iran, “We are ready to cooperate with them within the framework of stipulated terms and conditions.”

Zanganeh reiterated that Iran is ready to cooperate and collaborate with foreign oil companies if they come back to the Islamic Republic of Iran.

“But we do not give up what we have achieved. We will clinch agreements with foreign oil and gas companies on a new basis within the framework of rules and regulations at a much more solid and higher level,” he added.

Zanganeh emphasized that the capacities created in the sanctions period would be used optimally.

The Oil Ministry will use its upper hand in conclusion of contracts with foreign companies under new terms and conditions, he said.

He went on to say that many capacities have been created in oil sector and Iran’s progress in oil exports amid sanctions is not comparable with two years ago.

Zanganeh said that one percent increase in crude oil production co-efficiency which is 7 billion tomans will bring about 300 billion-dollar revenue for the country.

Regarding the increase in the recycling co-efficiency, he said that $1.2 billion worth of investment will be made for the current stage, 100,000 bpd will be added to the output and will bring about $1.5 billion extra revenue a year.

He noted that all the contracts have been signed with Iranian contractors and 72% of equipment is domestically made.

Efforts have been made for creating jobs amid sanctions during which 14.5% of Oil Ministry shares have been destroyed.

Earlier, he said that 11 billion dollars of revenues earned in the first boom of the petrochemical industry seven years ago, and in the second jump, the income is expected to reach 25 billion dollars at the end of the next Iranian year (March 20, 2021-March 20, 2022).

Iran had earned two billion dollars from the petrochemical industry in 1997 and the income reached 11 billion dollars in 2013, Zanganeh said. The revenue of petrochemical projects would increase to 25 billion dollars by March 20, 2022, he noted, adding that 37 billion dollars of income is expected by 2025.

Meanwhile, the CEO of the National Iranian Oil Company said NIOC was planning to issue Rls. 20,000b worth of bonds to finance projects aimed at production enhancement and maintenance of oil fields in Iran.

Addressing the ceremony, Masoud Karbasian said the project was put on the agenda by the Iranian Minister of Petroleum Bijan Zangeneh and was endorsed by the Economic Council back in 2018.

Afterward, 10 contracts were signed in the same year to be followed by 13 others. This time, 8 more contracts have been signed with a total value of $1.2 billion and to enhance production by 95,000 b/d.

He said that 33 packages of the plan to maintain and increase oil production include 29 onshore projects and four offshore projects, and expressed hope that with the full implementation of 33 packages, the country’s daily oil production capacity will increase by about 280,000 barrels.

Referring to the maximum use of the potential of Iranian companies in the implementation of these projects, Karbasian pointed to the presence of 17 competent companies in the field of exploration and production, 16 drilling companies, and 22 EPC companies ranked first in Iranian tenders. “A total of 31 contracts have been awarded to 22 Iranian companies.”

He estimated the total value of the contracts awarded in these 31 projects at $3.7 billion.

The CEO of the National Iranian Oil Company, referring to the average of 30% progress of 10 contracts in the first phase of the maintenance and enhancement of oil production, said: “The progress of projects is closely monitored through NIOC’s project management system.”

Karbasian stated that another advantage of this plan is the maximum share of domestic manufacturing, and added: “By implementing the localization plan of 10 groups of widely-used oil items, which started in the Iranian Ministry of Petroleum back in 2014, it is possible to tap the potentialities of Iranian manufacturers in three parts: wellhead equipment, downhole equipment, and seamless pipes.”

He said the share of domestic production in the plan to maintain and enhance oil production is 72% and said this share is expected to reach more than 80% by the end of the contracts.

According to the official, 18 drilling rigs are currently active in the plan, which will increase to 55 rigs with the activation of all 33 contract packages.

Karbasian said the allocation of 4% of the contracts’ value to fulfill social responsibilities is another benefit of this national plan.