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What’s behind Iran’s $13B investment in domestic oil industry?

Iran’s oil exports are on the rise, particularly to China, though the country faces challenges in maintaining its oil production levels.
A view of refinery No. 2 (Phases 2, 3) of the South Pars Gas-Condensate field in Asalouyeh Seaport, north of the Persian Gulf in Iran.

Iran's state oil company awarded $13 billion in contracts to local firms on Sunday, demonstrating the Islamic Republic’s commitment to its oil sector as it seeks to boost exports and production, despite US sanctions.

The National Iranian Oil Company (NIOC) signed contracts with domestic companies to develop upstream projects at the following oil fields, the official Islamic Republic News Agency (IRNA) reported:

  • Azadegan in southwest Iran’s Khuzestan province, close to the Iraqi border and shared with Baghdad
  • Azar 2 in the western Ilam province, close to the Iraqi border and shared with Baghdad
  • Sumar in the northwestern Kermanshah province, close to the Iraqi border
  • Saman in Kermanshah
  • Delavaran in Ilam
  • Masjed Soleyman in Khuzestan

NIOC managing director Mohsen Khojasteh-Mehr said that the contracts will increase production at the fields by 400,000 barrels per day (bpd) to 620,000 bpd, create 66,000 jobs and generate $15 billion annually.

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