Iran signs $13bn worth of contracts to develop 6 oil fields

The National Iranian Oil Company (NIOC) has signed contracts worth $13 billion, marking the country’s biggest oil contracts in a decade.

18 March 2024
ID : 45397
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The National Iranian Oil Company (NIOC) has signed contracts worth $13 billion, marking the country’s biggest oil contracts in a decade.

Managing Director of the National Iranian Oil Company (NIOC) Mohsen Khojastehmehr and the representative of a domestic contractor sign major contracts for development of upstream projects at different oil fields of the country in Tehran, Iran, March 17, 2024.

The National Iranian Oil Company (NIOC) has signed contracts worth $13 billion, marking the country's biggest oil contracts in a decade.

The NIOC signed the contracts with domestic companies to develop upstream projects at six oil fields including Azadegan, Azar 2, Soumar, Saman, Delavaran and Masjed-Soleiman.

Under the contracts, oil production at those fields will increase by 400,000 barrels per day to hit 620,000 bpd, which will generate $15 billion annually, NIOC Managing Director Mohsen Khojastehmehr said at the signing ceremony on Saturday.

The projects will create 66,000 direct and indirect jobs, he added.

Khojastehmehr hailed the contracts as another step by the administration of President Ebrahim Raisi to fulfill its promises to develop the oil industry and improve the economy.

“Our plan, since the administration took office, was to prioritize the projects that result in economic growth and benefit the people”, Khojastehmehr said, adding that the company has, among other things, managed to increase the production and sale of oil since August 2021 when the Raisi administration took office.

The contracts were inked two days ahead of the Oil Nationalization Day which marks the anniversary of Iran’s taking control of its oil industry in 1951 as a result of a movement led by then-prime minister Mohammad Mosaddeq.

Oil Minister Javad Owji and First Vice-president Mohammad Mokhber were also present at the signing ceremony.

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