Oil & Gas
The Ministry of Petroleum of the Islamic Republic of Iran is responsible for all kinds of oil and gas activities. The Ministry by itself has got the four major subsidiaries body as follows which undertake implementation and operation of the above mentioned activities:
• National Iranian Oil Company (NIOC)
• National Iranian Gas Company (NIGC)
• National Iranian Oil Refining & Distribution Company (NIORDC)
• National Petrochemical Company (NPC)
The Iran’s Unique Position in terms of hydrocarbon reserves is as follows:
I. Iran is endowed with 155 billion barrels of oil equivalent to 10.9% of the global oil reserves.
II. Iran owns 18% of the global natural gas reserves equal to 34 TCM of natural gas.
III. Iran’s current exploration projects will lead to a considerable increase in the country’s oil and gas reserves.
IV. Presently, 62 onshore oil fields,16 offshore oil fields,20 onshore gas fields, and 2 offshore gas fields are in operation in Iran.
V. 26% of hydrocarbon reserves and 50% of natural gas reserves are located across Iran’s common borders with its neighbors.
Biggest Oil and Gas Companies in terms of Hydrocarbon Reserves
VIII. Biggest Countries in Terms of Oil Reserves
National Iranian Oil Company (NIOC)
Since 1951, National Iranian Oil Company (NIOC) has been directing and making policies for exploration, drilling, production, research and development, refining, distribution and export of oil, gas and petroleum products.
NIOC, with a vast amount of oil and gas resources, is one of the world’s largest oil companies. At the present time, it is estimated that the company holds 155 billion barrels of liquid hydrocarbons and 29 trillion cubic meters of natural gas.
With advances in technology and increasing complexities of economic and political relations, NIOC has risen to a privileged status. Therefore, national and regional policies and cooperation with industrial countries in the provision in the supply of energy and stabilizing global oil markets are on the agenda of NIOC.
NIOC, in accordance with Article 44 of the Constitution, gives authority to different sectors, while supervising oil industry activities. The company has taken major steps toward establishing business enterprises, funded financial resources for development, helped to update technologies for exploration, drilling and production with reliance on the knowledge of Iranian experts.
NIOC consists of seventeen production companies, eight technical service companies, seven managements, six divisions (administrative units) and five organizational units.
National Iranian Gas Company (NIGC)
The growing need for gas to provide energy and fuel, and the foreign currency resulted from sales and export for investment and launching infrastructural industries in the country, reinforced the idea of bundling gas industry related activities. Therefore, in line with this, and based on the legal statute, NIGC as one of the four major subsidiaries of Iran's Petroleum Ministry was established.
Since its establishment, NIGC has gradually achieved capabilities and has managed to have access to various sources and facilities such as experts and efficient human force equipped with scientific and theoretical vision and knowledge; tools, equipment, machinery and various advanced workshops for implementing its operations proportionate with the country economic and social development trend.
NIGC has also benefited from gas, which is one of the major fuels used for energy production and providing a part of the required currency of the country.
At present, NIGC is carrying out its tasks in compliance with international valid standards on its own.Right now, NIGC is one of the top ten gas companies in the gas industry in the Middle East, and one of the four major subsidiaries of the Petroleum Ministry. Being responsible for providing over 61 percent of the country- required fuel, it has over 45 years experience.The company, in terms of providing gas, has an important position both inside the country and abroad.
At present, the number of NIGC permanent staff amounts to 18000 persons; meanwhile, over 18000 contractor staff works with NIGC.
National Iranian Oil Refining & Distribution Company (NIORDC)
National Iranian Oil Refining & Distribution Company (NIORDC) was established in 1991, as one of the four main subsidiaries of the ministry of petroleum.
NIORDC as part of the National Iranian Oil Company (NIOC) was established on the principle of separating up-stream activities. It has 19 subsidiaries and affiliated companies, including 9 oil existing refineries. It offers its services using 22,000 experienced employees. In view of the increasing demand of petroleum, NIORDC is up to perform expanding, upgrading and optimizing projects for the existing refineries, and constructing new refineries.
In addition to crude oil refining, NIORDC’s activities are also focused on engineering, construction and transportation which embodied into three major subsidiaries: NIOPTC, NIOPDC and NIOEC.
Mission & Strategies
• Crude Oil Refining
• Crude Oil & Product Transfer
• Products Distribution
• Export & Import Of Oil Products
• Employing advanced technologies to boost efficiency
• Expanding Refining Capacity to give added-value to our crude oil
• Upgrade the quality of products to meet new environment requirement
• Growing presence in regional markets & collaborating with neighboring countries
• Attracting the participation of local and foreign private sectors in refining projects
• Expanding pipeline and storage networks to meet our import/export requirements
National Petrochemical Company (NPC)
National Petrochemical Company (NPC), a subsidiary of the Ministry of Petroleum is owned by the government of the Islamic Republic of Iran and is responsible for planning, organizing, developing, supporting and leading the country’s petrochemical industry. Founded in 1964, NPC began its activities by operating a small fertilizer plant. Petrochemical industry, as a global industry, plays a special role in Iran’s economy and is considered as the first exporter in the country as well as the second producer in the Middle East. Thus, NPC is committed to maintain and upgrade its place according to the country’s 20-year Vision Plan for 2025. To this end,reaching a production capacity of over 100 million tons through implementing developmental projects with an investment of 40 billion dollars has been set as the goals of the next 5-year Development Plan of the country’s petrochemical industry. This company believes that the most appropriate strategy for such development is participation of private/nongovernmental investors.
Quantity goals of the 5th five-year development plan (2011-2015)
• Number of top prioritized petrochemical projects: 69
• Required total investment: 498,000 billion Iranian Rials
• Total capacity: 117 million tons
• Production rate: 90 million tons
• Value of salable products: 44 billion Dollars
Qualitative objectives and policies
• Establishment giant petrochemical facilities on the southern borderline to easily accessing international markets.
• Utilization of optimized gas sources instead of oil as feedstock for petrochemical complexes.
• Increasing the share of nongovernmental investment in petrochemical industry.
• Applying and development new technologies in petrochemical industry.
• Establishment joint venture petrochemical facilities and service companies with right foreign companies.
• Increasing the utilization of ethane and natural gas in petrochemical facilities.
• Implementation new petrochemical complexes using methane and ethane as feedstock near the South Pars Special Economic Energy Zone to reduce expenses of transportation.
NPC strategic goals pivoting around its developmental/sovereign role
• Development to achieve the country’s 20-year Vision Plan.
• Increasing Petrochemical industry share in non-oil export.
• Sustainable development of petrochemical industry through Strengthening and completing value chain with a concentration expanding supplementary industries.
• Optimizing the use of local facilities and capabilities.
• Utilizing comparative-competitive advantages of local and foreign less-developed regions and special economic zones as well as free-trade zones (Chabahar, Kish, Queshm, Sarakhs, Lavan and …)
• Preparing the necessary grounds for local and foreign investment