Oil and Gas
The Energy sector in Iran is a dynamic and growing industry that plays a crucial role in the country's economy and global energy market. Iran is endowed with abundant renewable and non-renewable energy resources. The existence of rich hydrocarbon resources in oil and gas has led to a significant manufacturing sector and sizeable consumer market.
Iran’s oil and gas (O&G) industries date back to the early twentieth century, making them the oldest in the Middle East. The oil and gas sector is a key driver of the economy in Iran, with the country possessing some of the largest oil and natural gas reserves in the world. The sector plays a crucial role in generating government revenue, supporting economic growth, and providing employment opportunities for millions of people.
The government of Iran has implemented policies and regulations to support the growth and development of the oil and gas sector, and has created a favorable business environment for local and foreign businesses to establish themselves in the market. In recent years, the government has made significant investments in modernizing and upgrading its infrastructure, and has expanded access to modern technologies such as enhanced oil recovery and natural gas processing.
Iran is one of the largest oil-producing countries in the world, and the oil and gas sector accounts for a significant portion of the country's exports. Iran’s natural gas reserves account for 16.6 percent of the world’s reserves, 49 percent of Middle East reserves and 38 percent of the reserves of oil exporting countries. The accumulation of Iranian oil and gas reserves shows that Iran has the first rank in the world’ s hydrocarbon reserves and therefore, plays a significant role in providing world’s energy. Despite the challenges posed by international sanctions, the sector has remained resilient, and the government of Iran has taken steps to increase efficiency and competitiveness, such as reducing the cost of production and increasing the efficiency of its refineries. Thanks to the efforts of its elites and experts, it succeeded in serving a large part of the objectives of its development prospect.
In addition to its domestic oil and gas production, Iran is also a major player in the global energy market, with its oil and gas exports reaching customers in countries across the world. The country is also a key transit route for oil and gas exports from neighboring countries, further emphasizing its importance in the global energy landscape.
The government of Iran is committed to promoting sustainable and responsible practices in the oil and gas sector, recognizing the importance of protecting the environment and preserving natural resources. The country has implemented regulations and standards to ensure that exploration, production, and transportation activities are conducted in a manner that is safe and environmentally friendly, and is taking steps to reduce its carbon footprint.
Investment in Petroleum Industry
According to the Ministry of Petroleum of Iran, in the normal run of things, between $20 billion and $25 billion is invested annually in the petroleum industry. A variety of options are available for financing petroleum industry projects. Some of them are dipping into the National Development Fund of Iran, foreign finance, banking and money market resources, bonds and Islamic financing instruments, and selling corporate assets for investment in new projects. Oil managers have experienced these options which are recognized in the stock market. However, other instruments and options are needed for financing petroleum industry projects. The petroleum industry needs technology and finance. Dozens of billions in credit is needed for developing the petroleum industry, developing oil and gas fields, renovating and rebuilding oil installations. The Ministry of Petroleum has not limited itself to a specific model of oil contract and it is working on EPC and EPD as well. It has also attracted financing from the capital market in order to keep activities running.
- National Iranian Petrochemical Company (NPC)
The comprehensive and up-to-date information about National Iranian Petrochemical Company (NPC) is available on their internet website with the address www.nipc.ir for both domestic and foreign investors in Persian and English languages.
- National Iranian Oil Refining and Distribution Company (NIORDC)
The information regarding investment opportunities in refining projects, which has been prepared by the National Iranian Oil Refining and Distribution Company (NIORDC), is presented in the file below.
►Investment Opportunities in Refining Projects
For additional details on energy sector of Iran, please refer to the PDF document below, which has been provided by Tehran Chamber of Commerce, Industries, Mines & Agriculture.
Download: Iran Energy Sector Guide (PDF)
Furthermore, for information about investment opportunities in this sector in Iran, be sure to visit the website of Organization for Investment, Economic and Technical Assistance of Iran.
