Ministry of Petroleum
The Ministry of Petroleum of the Islamic Republic of Iran
is a state-run organ affiliated with the Executive branch
of government. The Ministry is tasked with exercising the
principle of Iran’s ownership of and national sovereignty
over oil and gas resources as well as separating governance
from administrative tasks in the development of oil and
The Ministry of Petroleum was established several months
following the Islamic Revolution in 1979.
The structural organization of the Ministry comprises a
head office and four main subsidiaries – National Iranian
Oil Company (NIOC), National Iranian Gas Company (NIGC),
National Iranian Oil Refining and Distribution Company
(NIORDC) and National Petrochemical Company (NPC). Through
subsidiaries, the Ministry supervises exploration,
extraction, marketing and selling of crude oil, natural
gas and petroleum products in the country.
The Ministry of Petroleum of the Islamic Republic of Iran
was established with a view to exercising the principle of
Iran’s ownership of and national sovereignty over oil and
gas resources as well as separating governance from
administrative tasks in the development of oil and gas industry.
Born in Shiraz, 1966
National Iranian Oil Company (NIOC) has since 1951 been tasked with
arranging petroleum industry activities including exploration,
drilling, production, research and development, oil and gas exports,
and associated policymaking. Owning huge hydrocarbon reserves, NIOC is one of the largest oil
companies in the world. As science and technology make progress in
the petroleum industry and political and economic ties become more
complicated, NIOC has seen its standing improve. Therefore, national
and regional policies and cooperation with top industrialized nations
in energy supply and bringing stability to global oil markets top
NIOC’s administrative organization is as follows: Management
(Directorate of International Affairs, Directorate of Research and
Technology, Directorate of Corporate Planning, Directorate of
Coordination and Supervision on Oil and Gas Production, Directorate
of IT and Communications, Directorate of Human Resources Development,
Directorate of Financial Affairs, Directorate of Legal Affairs,
Directorate of Exploration, Directorate of HSE, Project for Assisting
Oil-Rich Zones Development); Top Administration (Public Relations,
Vetting Board, Security, Inspection, Complaints, Internal Audit);
Organization (Research Institute of Petroleum Industry, Petroleum
Industry Health Organization, National Iranian Gas Export Company,
Iran Fuel Conservation Organization, Pension, Saving and Welfare
Funds); Production companies (National Iranian South Oil Company,
Iranian Central Oil Fields Company, Pars Oil and Gas Company,
Iranian Offshore Oil Company, Arvandan Oil and Gas Production
Company, Khazar Exploration and Production Company) and Technical
services companies (National Iranian Drilling Company, Petroleum
Development and Engineering Company, Tehran Kala Naft Procurement
and Manufacturing Support Company, Iran Oil Terminals Company,
Pars Special Economic Energy Zone Organization).
The daily increasing demand for gas to supply energy and fuel and
generate hard currency from gas exports for investment in parent and
infrastructure industries set the foundation for centralizing
activities related to the gas industry. National Iranian Gas Company
(NIGC) was established in 1965 based on legally enacted Articles
of Association with an initial capital of IRR 25 billion.
In parallel with economic and social development in the country and
by using gas as a major source in supplying fuel and generating energy
and revenue, NIGC has since enhanced its capabilities and engaged
specialized manpower and achieved necessary advanced machinery and equipment
to carry out gas-associated operations. Today, NIGC is able to
handle all gas-associated affairs by itself in accordance with
internationally recognized standards.
NIGC is now one of the top ten in the Middle East. It supplies
more than 75% of Iran’s gas needs.
Enjoying a significant standing both internally and externally,
NIGC has restructured itself based on its needs and extent of activities.
National Iranian Oil Refining and Distribution Company (NIORDC)
was established by March 1992 in line with the Petroleum
Ministry policy of separating upstream activities (crude oil
and gas exploration and production) from downstream activities
(transfer of crude oil and petroleum products, refining,
exporting, importing and distributing petroleum products).
Currently one of the main four subsidiaries of the Ministry
of Petroleum, NIORDC is tasked with steering the operations of
its own offshoots – National Iranian Oil Products Distribution
Company (NIOPDC), Iranian Oil Pipeline and Telecommunications
Company (IOPTC), Abadan Oil Refining Company, Imam Khomeini
Oil Refining Company, National Iranian Oil Engineering
and Construction Company (NIOEC) and Oil Refining Industries
Development Company (ORIDC).
NIORDC’s missions are divided into production, transfer
and distribution (as links of downstream activities value
chain); production, transfer, storage and distribution of
petroleum products across the country by making efforts in
favor of upgrading the quality of products and showing strong
presence in regional and global markets through interaction with
neighboring and regional nations in swapping or transacting crude
oil and petroleum products as well as joint investment.
Furthermore, NIORDC is tasked with providing engineering and
telecommunications services to supply chain companies.
NIOPDC, a key subsidiary of NIORDC, is distributing
domestically-manufactured or imported petroleum products
and manage filling stations across the country. It also monitors
the proper activity of gas stations, CNG stations and
aviation fueling centers.
The petrochemical industry in Iran dates from the 1950s.
In late 1950s, the then Ministry of Economy established a
chemical agency to promote the petrochemical industry in
Iran. In 1958, a chemical fertilizer plant was constructed
in Marvdasht in Fars Province. As the growth of the petrochemical
industry required broader specialized activities and further
coordination with the oil and gas industry, an organization
was needed to be established to develop and lead the
petrochemical industry. That was why in 1963, National
Petrochemical Company (NPC) was established under the authority
of National Iranian Oil Company (NIOC). All activities related
to the petrochemical industry were centralized under NPC.
NPC has since operated development plans, achieved a
high standing and made maximum use of relative advantages
in the country to be more effective in the region and the
world. Evidence of such presence is seen in changes in
economic variables and indicators like production, export,
investment, value-added and share of national production,
reginal partnership and extent of export markets.
After all production companies were privatized,
NPC – relying on more than five decades of experience
and enjoying human and intellectual capitals – is engaged
in macro-planning, policymaking, regulation, arrangement,
facilitation and support of sustainable development of the
petrochemical industry with a view to reducing raw materials
sales and completing the petrochemical value chain.
Laying emphasis on social responsibility, NPC is instrumental
in national economic development and upgrading the quality of
life by protecting the environment and national resources,
creation of value, accountability, and respecting the rights of stakeholders.
For the latest information on the specifications of Iranian crude oil, click here.