Manufacturers Urged to Register in the Commodity Supply System
Iran's deputy minister of petroleum for engineering, research and technology has called on domestic manufacturing companies to register in the commodity supply system.
Addressing an exhibition of oil commodities in the oil-rich city of Ahvaz, Habibollah Bitaraf said that in case the domestic manufacturers fail to register they will not be able to bid for future projects.
He said that the Ministry of Petroleum supports domestic manufacturers in oil contracts.
"The mechanism for issuing certificate for products and industrial services has been worked out in cooperation with the National Standards Organization and the Iran Petroleum Association," said Bitaraf.
Bijan Aalipoour, CEO of National Iranian South Oil Company (NISOC), said at the event that 70% of equipment which Iran's oil industry needs is supplied domestically.
"We promise not to purchase foreign products as long as high-quality and standardized commodities are manufactured domestically," he said.
Since the Iran Petroleum Contract (IPC) was signed off on, the Ministry of Petroleum has been recommending Iranian manufacturers to enhance the quality of their products, because in the new round of oil contracts a big share has been envisaged for Iranian manufacturers and they are required to supply high-quality products in order to have a high share in this market.
Iran's Ministry of Petroleum has made significant efforts over this time to arrange the activities of Iranian manufacturers. One of them is the commodity supply system. Any company that registers on this system will provide its information to clients, while the Ministry of Petroleum could exercise more supervision on their performance. Foreign companies can also order their commodities to Iranian manufacturers with peace of mind.
Aalipour referred to the establishment and activity of sectors of research and manufacturing in the petroleum industry over the past four decades, saying: "It's a great pleasure that more than 70% of commodities and equipment required in the upstream sector are designed and built by Iranian specialists and the private sector," he said.
"As the harbinger of movement of indigenization of commodity in oil, the NISOC is currently using domestically manufactured products like drills, wellhead and downhole equipment, pumps, main components of gas turbines and even turbines and pumps fully manufactured in Iran in its facilities," said Aalipour.
6mb/d Potential Oil Output
According to the latest report from the Directorate of Corporate Planning at the National Iranian Oil Company (NIOC), Iran owns 18% of world's gas and 10% of world's oil reserves – equal 15.7 billion barrels.
Iran has potential to recover 6 mb/d of crude oil and 400 bcm/y of gas.
Bitaraf said Iran is forecast to be producing 4.5 mb/d of oil, 1 mb/d of condensate and 1,100 mcm/d of natural gas under the country's 6th Five-Year Economic Development Plan. He added that such targets would require $134 billion of investment in upstream and $67 billion in downstream sector.
$5bn Package in 3 Years
Bitaraf also said that the Ministry of Petroleum envisages a $5 billion EPCF package for the coming three years to preserve and enhance output from oil fields currently operating in the country.
"With measures taken so far, several projects have been prepared. We hope that agreements would be signed in the next year for these projects to become operation in two to three years. Furthermore, we can see the return of investment over this period," he added.
Bitaraf said reconstruction and renovation of upstream oil industry installations, studying all oil fields and development of domestic manufacturing of equipment and commodities widely demanded in the oil and gas industry were among other plans envisaged by the Ministry of Petroleum.
"Therefore, significant work is available for the Iranian manufacturers of equipment. The policy of the Ministry of Petroleum is to make maximum use of domestic potentialities in implementing oil and gas projects," Bitaraf said.
4 Homegrown Items Unveiled
At the Ahvaz exhibition, four domestically manufactured items were unveiled. These items are manufactured for the first time in Iran with the support of NISOC.
Other commodities on exhibit in Ahvaz were a gas compressor rotor, suction pump, SRP, rotor for water injection and a pump with a capacity of 96 cubic meters per hour.
The four-day event was held on a piece of land of 15,000 square meters with the participation of 250 companies.