Wednesday, July 15, 2020   04:02:57
Tuesday, February 28, 2017 Vision

By relying on God's eternal power and under the aegis of faith, national determination and planned endeavors and collective foresight, and in compliance with the ideals and principles of the Constitution, under 20-Year Vision:
Iran is a developed country holding top economic, scientific and technological position at regional level, with Islamic and revolutionary identity, a source of inspiration in the Muslim world and with constructive and effective interaction in international relations.

General Policies Instructed by Supreme Leader for Energy Sector

- Adopting appropriate measures and approaches to expand oil and gas exploration and fully discover country's resources
- Boosting the efficient oil production capacity in proportion with existing deposits and upgrading the country's economic, security and political power
- Enhancing gas production capacity in proportion with known gas reserves in order to supply domestic needs and maximize replacement of petroleum products with gas
- Broadening fundamental and development research and training specialized human resources and making efforts to establish a center for recruitment and export of energy techno-engineering services and knowhow at international level and upgrading technology in the oil, gas and petrochemical sectors
- Making necessary efforts and establishing lawful arrangements to attract necessary (domestic and foreign) financial resources for oil and gas affairs within legal limits
- Benefiting from the regional and geographical position of the country for selling and buying, processing and refining and swapping and transferring oil and gas from the region to domestic and global markets
- Replacing crude oil and natural gas exports with export of oil, gas and petrochemical products

General Goals of Oil and Gas Sector Development Under 6th Development Plan and Ministry of Petroleum Policies to Realize Objectives of Vision Plan, Resilient Economy, etc.

Goal 1:
Boosting production from hydrocarbon resources to create generative and stable wealth with spatial planning considerations (As per Clauses 10, 11, 12, 16 and 18 of instructed policies)

Goal 2:
Ensuring security for domestic supply of gas, oil products and petrochemicals with economic and environmental considerations (As per Clauses 11, 15 and 16 of instructed policies)

Goal 3:
Optimal use of hydrocarbon potential to turn Iran into a key player in global energy markets (As per Clause 4 of instructed policies)

Goal 4:
Upgrading petroleum industry to an updated and excellent level by relying on domestic capabilities and international interactions (As per Clauses 14 and 17 of instructed policies)

Goal 1 - Boosting production from hydrocarbon resources to create generative and stable wealth with spatial planning considerations

Strategy Policies
1-1. Expanding exploration activities in order to strengthen bases for oil and gas production and development of resources 1-1-1. Conclusion of exploration at border areas up to the end of the 6th Development Plan
1-1-2. Prioritizing exploration activities in non-border areas, specifically where there is appropriate infrastructure
1-1-3. Achieving the minimum 0.6% replacement rate in crude oil and natural gas exploration
1-1-4. Reducing waiting time in drilling activities of exploration sector by at least 10% annually by the end of Development Plan
1-1-5. Conducting at least 1,000 square kilometers of 3D seismic testing per annum
1-1-6. Completing and upgrading the comprehensive and reliable data system GIS at Directorate of Exploration
1-2. Boosting efficient production capacity of oil and gas fields
1-2-1. Reviving and maintaining production level at oil fields by prioritizing application of well-based methods in big fields and improving processing installations
- Conducting well-based screening methods on oil wells and getting familiar with method of output hike for each well
- Equipping at least 30% of oil wells discovered through screening process with different methods of artificial lifting up to the end of Development Plan (using artificial lifting with gas and installing downhole pumps)
- Equipping at least 30% of oil wells discovered through screening process with downhole equipment (coiled tubing) or wellhead equipment (Xmas Tree optimization, multiphase pumps) by the end of Development Plan
- Studying, designing and operation in at least 30% of oil wells discovered through screening process for the purpose of boosting recovery rate (hydraulic fracturing, acid fracturing)
- Increasing the water-holding capacity of operation and desalting facilities in oil fields by at least 20% by the end of Development Plan
- Full and precise implementation of tests and workover in wells in order to avoid production problems
1-2-2. Updating comprehensive studies on oil fields with the output of at least 50,000 b/d and gas fields with the output of at least 15 mcm/d five years after they were last studied, by applying new methods of reservoir study up to the end of Development Plan
1-2-3. Prioritizing full gas supply for injection into critical oil fields like Maorun, Karanj, Parsi, Aghajari, Bibi Hakimieh and Koupal
1-2-4. Prioritizing injection of associated petroleum gas into oil reservoirs
1-2-5. Gathering of associated gas in new oil fields that are to undergo development
1-2-6. Recycling natural gas and non-natural gas (N2, CO2) in order to avoid pressure fall-off in gas condensate reservoirs and their loss of condensate particularly in domestic independent fields
1-2-7. Boosting recovery rate and final recovery from oil fields by at least 1 percent by the end of Development Plan by implementing enhanced recovery projects
1-2-8. Applying miscible injection of gas in oil fields based on experience of pilot project of Ramshir oil field
1-2-9. Operating at least one pilot project in order to implement different methods of enhanced recovery by prioritizing methods of injecting CO2, nitrogen and chemicals in the subsidiaries of National Iranian Oil Company
1-2-10. Reconstruction, renovation and upgrading of drilling fleet until reaching the drilling capacity of at least 200 new wells (except for workovers) a year through supporting capable companies and creating healthy competitive atmosphere
1-2-11. Optimizing methods of drilling in oil and gas reservoirs

- Reducing by at least 10% annually the time spent on drilling a development well through reconsidering plans and conducting studies before drilling and replacing Kelly with top drive in drilling equipment and using Iron Roughneck
- Reconsidering oil and gas well drilling through applying new methods and studies
- Applying new methods of drilling and completion like horizontal drilling, multidirectional drilling, geosteering, fishbone, underbalanced drilling in 20% of drilled development wells up to the end of Development Plan
- Improving quality of well cementing in order to increase the well lifecycle and block entry of unwanted fluids into wellbore
- Using polymer muds instead of oil-based muds in at least 50% of onshore drillings

1-3. Development and maximum recovery from jointly owned oil and gas fields
1-3-1. Prioritized enhancement of crude oil and natural gas production capacity in jointly owned fields particularly West Karoun fields, South Pars and Azar
1-3-2. Unitization in development of fields shared with neighboring countries
1-4. Enhancing oil and gas condensate refining capacity by reforming refining model
1-4-1. Completion and operation of gas condensate refineries with priority given to Persian Gulf Star Refinery and Siraf refining park with the participation of the private sector
1-4-2. Promoting integrated regulation regime at the level of National Iranian Oil Refining and Distribution Company (NIORDC) and National Petrochemical Company (NPC)
1-4-3. Upgrading sophisticated petrorefineries by at least one refining unit with the objective of maximizing petrochemical production by the end of 6th Development Plan
1-4-4. Increasing share of light and middle-distillate products at oil refineries from 70% to 85% up to the end of 6th Development Plan
1-4-5. Reducing the share of fuel oil production at oil refineries by 10% up to the end of the 6th Development Plan
1-4-6. Reducing at least 20% the consumption of water at oil refineries
1-5. Boosting petrochemical production capacity by completing value chain in appropriate areas
1-5-1. Prioritizing completion and operation of petrochemical projects with at least 25% of progress up to the end of the 6th Development Plan
1-5-2. Expanding downstream and mid-stream sectors of petrochemical industry with priority given to products of high value-added
1-5-3. NPC's contribution to investment in key and prioritized projects in appropriate and underdeveloped areas based on spatial planning findings
1-5-4. Levying export duties on basic petrochemicals like ethylene, methanol, propylene and polyethylene in order to complete value chain and support domestic industries
1-5-5. Developing separation of ethane, propane and butane from natural gas in order to supply petrochemical feedstock and export products
1-6. Creating incentives for investors and applying new methods of financing in petroleum industry
1-6-1. Designing new and diverse contract models by taking into consideration maximum efficient recovery
1-6-2. Increasing NIOC's share of revenue from joint oil and gas fields' output
1-6-3. Using financial resources acquired from early production of joint fields in order to finance their development projects
1-6-4. NPC and NIRODC facilitation of banking guarantees for the private sector projects to receive loans
1-6-5. Joint Investment with regional and international companies in global markets
1-6-6. Supporting establishment of non-governmental companies for investment (not ownership) in upstream oil and gas activities particularly in jointly owned fields within the framework of General Policies of Article 44 of Constitution

Goal 2: Ensuring security for domestic supply of gas, oil products and petrochemicals with economic and environmental considerations

Strategy Policies

2-1. Fuel demand management and contribution to reducing energy intensity
2-1-1. Optimizing fuel mix in the country by assigning shares to energy commodities
2-1-2. Increasing share of low-carbon sources of energy in energy mix
Completion of value chain and increasing value-added in oil and gas industry with a view to containing energy intensity
2-1-3. Offering discount in the price of feedstock to power plants with output above 55%
2-1-4. Banning construction of new gas-fueled power plants under 6th Development Plan and transforming existing gas-fueled power plants into combined cycle power plants and using CHP up to the end of the 6th Plan
2-1-5. Increasing LPG consumption share to 5% in transportation mix up to the 6th Development Plan
2-1-6. 15% reduction in energy consumption by petroleum industry operating units up to the end of 6th Development Plan
2-1-7. 25% reduction in waste production in the chain of production, transmission and distribution of oil, gas and petrochemicals up to the end of the 6th Development Plan
2-1-8 Empowering and steering energy services companies
2-1-9 Launching and expanding information management system for energy consumption and auditing up to the second year of the 6th Development Plan
2-2. Boosting gas refining capacity
2-2-1. Preserving the capacity of existing refineries through installing necessary compressors in South Pars gas field
2-2-2. Preserving and increasing the capacity of existing gas refineries up to the end of the 6th Development Plan through de-bottlenecking
2-3. Development and optimal operation of infrastructure for supply of natural gas, oil products and petrochemicals
2-3-1. Development and completion of Iran gas trunkline in proportion with growing gas production capacity at South Pars gas field
2-3-2. Increasing storage capacity of natural gas in the country in order to supply sufficient during peak consumption with priority given to construction in central areas up to the end of the 6th Development Plan
2-3-3. Establishing an integrated online system to control and measure production, refining, transmission, refining, distribution and export of crude oil and natural gas and oil products up to the end of the 6th Development Plan
2-3-4. Reducing at least 5% the share of road transport and increasing at least 10% the share of railway transport in the distribution of oil products up to the end of the 6th Development Plan
2-3-5. Maximizing use of DRA in increasing the capacity of transfer of crude oil and oil products up to the end of the 6th Development Plan
2-3-6. Development, renovation and safety of pipelines, oil transfer centers, installations and relevant machinery in proportion with refining capacity in the country
2-4. Boosting the resiliency of gas supply system and upgrading confidence coefficient of refining capacity
2-4-1. Boosting the stability of gas supply network through communications with and diversification of pipeline network corridors
2-4-2. Applying peak shaving methods during peak consumption
2-4-2. Requiring manufacturing companies to optimize and renovate oil refineries with a view to reducing fuel oil production through regulator body
2-4-4. Reducing costs of transfer of fuel oil destined for exports and products destined for imports
2-5. Management and reduction of risks of natural and critical disasters in the oil, gas and petrochemical industry
2-5-1. Retrofitting of installations and networks of fuel distribution and transmission against disasters
2-5-2. Boosting security of telecommunications and information technology networks
2-5-3. Adopting unified procedures and standards to manage physical assets and corrosion in the petroleum industry
2-5-4. Organizational restructure and improvement of systems and structures of safety, firefighting and crisis management
2-5-5. Developing broad-based information and communications system and enhancing operating capability in dealing with emergency conditions emanating from natural and human-made crises
2-6. Minimizing destructive impacts on the environment by activities of oil, gas, refining and petrochemical industry
2-6-1. Assigning projects for gathering, inhibition, control and use of associated gas in all fields and oil industry facilities to people and reducing by at least 50% the amount of flared gases up to the end of the 6th Development Plan
2-6-2. Prioritization and implementation of projects to reduce wastes and emission of pollutant gas in the oil, gas and petrochemical industry
2-6-3. Applying new methods to reduce water consumed in the installations of different units of petroleum industry
2-6-4. Banning establishment of refining and petrochemical units in arid and low-water areas
2-6-5. Imposing carbon penalties in order to minimize greenhouse gas emissions
2-6-6. Making primary arrangements with relevant bodies and prioritizing the resolution of surface problems like dams, military barracks, expansion of cities, etc. in order to pave the way for the development of fields
2-6-7. Development and improvement of the comprehensive management of water, soil, wastewater and waste with focus on new recovery methods
2-6-8. Developing and supporting modern industrial technologies with least environmental pollution
2-6-9. Supporting mechanisms worked out for benefitting from international opportunities with a view to reducing environmental risks
2-6-10. Developing modern systems to monitor environmental wastes and pollutants
2-6-11. Completing systems to recover steam from oil products in storage facilities, distribution posts, refineries and petrochemical terminals up to the end of the second year of the 6th Development Plan
2-6-12. Requiring application of systems to reduce emission of pollutant, greenhouse and flaring gas
2-7. Boosting the quality of oil products
2-7-1. Acquisition of Euro-4 and Euro-5 standards in at least 50% of production of gas and gasoil at Iranian refineries up to end of the 6th Development Plan
2-7-2. Gradual reduction of using MTBE and its replacement with low-pollution additives up to the end of the 6th Development Plan
2-7-3. Classifying the quality of oil products supplied by domestic refineries
2-7-4. Making efforts to increase margins of oil refineries in order to create higher value-added

Goal 3 - Optimal use of hydrocarbon potential to turn Iran into a key player in global energy markets

Strategy Policies
3-1. Turning Iran into a corridor for oil, gas and petrochemical trading in the region by using the country's geopolitical situation
3-1-1. Attracting oil, gas and energy commodities produced in the Caspian Sea littoral states and Iraq for consumption, refining, transit or re-export to consumer markets
3-1-2. Increasing crude oil, gas and oil products swap in proportion with existing infrastructure
3-1-3. Boosting the presence of private sector in the trading of crude oil, gas and petroleum products
3-1-4. Increasing storage capacity for crude oil, gas and oil products in import/export border posts.
3-2. Increasing Iran's share of oil, gas, refining and petrochemical industry in global markets
3-2-1. Involvement in consortiums of development of oil and gas fields and pipeline projects in the region
3-2-2. Building or buying shares at profitable refineries outside Iran in a bid to create long-term demand for crude oil exports
3-2-3. Creating crude oil storage capacities in Iran's crude oil potential market with priority for East Asia's markets
3-2-4. Increasing the share of exports from gas production in Iran to 10% by the end of the 6th Development Plan by prioritizing exports via pipeline
3-2-5. Diversifying target export markets in proportion with formation of new markets
3-2-6. Choosing strategic clients and creating diverse and long-term economic bonds with regional countries
3-2-7. Doubling the capacity of bunkering industry in the Persian Gulf and the Sea of Oman and reducing its costs in competition with neighbors
3-2-8. Encouraging investment in gas stations at regional and global markets
3-3. Bolstering Iran's presence and effective role at international energy bodies
3-3-1. Setting up and developing offices of regional and international organizations and hosting networks and centers affiliated with energy sector in Iran
3-3-2. Fulfilment of effective role in drawing up international treaties, contracts and memorandums related to oil and gas
3-3-3. Boosting the specialty of institutes and energy diplomacy staff
3-3-4. Training international negotiations teams in energy sector with outstanding technical, legal, economic and political potentialities

Goal 4: Upgrading petroleum industry to an updated and excellent level by relying on domestic capabilities and international interactions

Strategy Policies
4-1. Upgrading human assets with focus on health, skills and motivation (amended pursuant to the view of Department for Human Resources)
4-1-1. Renovation and improvement of organizational structure and architecture (human resources pyramid)
4-1-2. Maximizing human assets' productivity by highlighting value-added and reducing costs
4-1-3. Improving merits and capabilities of managers
4-1-4. Establishing gender equality and creating equal opportunities vis-à-vis empowering and improving merits of all staff
4-1-5. Boosting the quantity and quality of level and method of distribution of health and healthcare services
4-2. Acquisition of cutting-edge technologies and their indigenization and commercialization in the oil, gas, refining and petrochemical industries 4-2-1. Acquiring technical knowhow about enhanced recovery and improving mechanisms of production from fractured carbonated reservoirs in the upstream sector
4-2-2. Acquiring technical knowhow about technologies of gas sweetening and converting gas to petrochemicals like propylene and olefin in the downstream sector
4-2-3. Supporting practical research with regard to acquiring technologies related to energy efficiency and reducing energy intensity
4-2-4. Acquiring technical knowhow for producing chemicals and catalysts needed by the petroleum industry with priority given to widely consumed imported materials
4-2-5. Establishing and boosting knowledge-based companies in the upstream and downstream oil and gas companies for designing, engineering, manufacturing, installation of equipment, transfer of technology and boosting self-sufficiency (supporting knowledge-based companies and institutes and commercialization of technologies and innovations needed by the petroleum industry)
4-2-6. Developing government-run research institutes (GRI) and refining the mission assigned to the Research Institute of Petroleum Industry (RIPI) to become a GRI
4-2-7. Obligation to submit plan for transfer of technical knowhow in oil contracts particularly in the exploration and development of oil and gas fields
4-2-8. Establishing research networks comprising research institutes, universities as well as domestic and foreign general contractors for joint technological cooperation in the petroleum industry
4-2-9. Developing cooperation with international research centers, buying shares of proprietors of technologies and cooperation with leading universities in the world in in order to develop and export technology, commodity and knowledge-based services
4-2-10 Sharing profits from technological development activities and technological innovations in oil contracts with general contractors
4-2-11. Reducing risk of research activities, developing technology and commercializing it through supporting venture funds and applying new models of financing and contracts
4-2-12. Establishment and development of parks of science and technology for petroleum industry in free trade zones
4-2-13. Rearranging the structure of divisions and research centers of Ministry of Petroleum and subsidiary companies with focus on establishing parks of petroleum science and technology
4-2-14. Arranging a system to monitor modern technologies and drawing roadmap for access to products and technologies required by petroleum industry
4-2-15. Obligation for and supporting establishment of centralized databases of license, patent and purchased technologies
4-2-16. Adopting diplomacy for and steering relations about technology and manpower specializing in energy with different companies and countries.
4-3. Providing competitive environment and upgrading petroleum industry enterprise maintenance at level of leading international companies 4-3-1. Strengthening, merger and synergy of companies involved in the petroleum industry with the objective of establishing global scale big companies
4-3-2. Boosting the sovereignty, policymaking and regulatory role of Ministry of Petroleum
4-3-3. Obliging the Office of Economic Units of Petroleum Industry within the framework of economic and commercial agencies
4-3-4. Full realization of subsidy reform bill in the petroleum industry and making prices of oil, refining and petrochemical products in order to boost productivity, reduce energy intensity and strengthen the presence of private sector in competitive regional and global markets
4-3-5. Boosting and upgrading the government's role as client in the execution of projects and control of resources
4-3-6. Obligation to comply with international management and techno-engineering services in the oil, gas, refining and petrochemical industry
4-3-7. Transparency and stability of financial relations between the government and subsidiaries of Ministry of Petroleum
4-3-8. Integrated performance of all petrochemical companies in export markets by creating a common commercial brand
4-3-9. Supporting application of modern technologies and electronic systems for the agility of organizations
4-3-10. Facilitating customs operations and clearance of commodities related to national and megaprojects of petroleum industry
4-4. Upgrading domestic contractors, manufacturers, consultants and suppliers to international level
4-4-1. Forming strategic alliances between leading domestic contractors in order to step into foreign markets
4-4-2. Domestic manufacturing of 10 groups of prioritized petroleum industry commodities up to the end of the 6th Development Plan
4-4-3. Obligation for development of a system to manage the quality of manufacturing of commodity, services, processing and petroleum industry equipment inside the country up to the level of international standards
4-4-4. Establishing risk hedge funds and insurance coverage for products and industrial equipment supplied by domestic manufacturers
4-4-5. Integration of demand and effective control of procurement of commodity and equipment through setting up a centralized purchase system or other effective methods up to the end of the first year of the 6th Development Plan
4-4-6. Hiring a foreign partner alongside domestic manufacturing companies and obligating the foreign party to domestic manufacturing
4-4-7. Signing long-term contracts with domestic manufacturers for supply of key equipment in compliance with quality and competitive price obligations
4-4-8. Arranging and setting up vendor lists in different branches of petroleum industry up to the end of the first year of the 6th Plan and continued assessment and ranking of consultants, manufacturers and contractors
4-4-9. Applying modern methods, standards and structures in the management of oil and gas projects
4-4-10. Encoding chemicals and equipment and removal of diversity from equipment and commodities in use up to the end of the first year of the 6th Plan
4-4-11. Development and application of standards and unit price contracts for petroleum industry techno-engineering services
4-4-12. Maximum use of the capacity of domestic designing and manufacturing in order to increase domestic production and reduce dependence on imported equipment

Iran Oil and Gas Industry Perspective, Horizon 2025

- Reducing energy intensity to below 0.3 (equivalent of tons of crude oil for 1,000 dollars of gross domestic product (GDP) based on prices in 2000)
- Preserving the position of second largest OPEC producer of crude oil which requires distance with rivals in terms of production capacity
- Acquisition of the international ranking 2 in terms of natural gas production capacity in the light of the necessity to tap jointly owned reservoirs
- Acquisition of top regional ranking in terms of refining capacity with a view to creating the highest value-added from hydrocarbon resources in the country
- Acquisition of top regional ranking in terms of the value of chemical materials and commodities with a view to creating the highest value-added from hydrocarbon resources in the country
- Becoming the first owner of oil and gas technology in the region
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