Petroleum Ministry Inks 4 Research Deals
Minister of Petroleum Bijan Zangeneh oversaw the signing of four agreements between Iranian Oil Industry Ventures (IOIV) and four Iranian companies. Two are offtake agreements and two are venture capital agreements.
Zangeneh said the agreements were in line with the objectives set for the current calendar year, i.e. production, support and removal of obstacles.
“Numerous meetings were held at the Petroleum Ministry for this slogan to materialize. Therefore, we decided to support knowledge-based companies and startups and remove obstacles in their way,” he said.
An offtake agreement was signed for the purchase of 10 ESP pumps between IOIV and Fanavaran Parsian Company and an offtake agreement for purchasing 30 PDC drilling bits between IOIV and "Asmary Field Services Company". In the venture capital sector, two deals were signed with Faradid Company and Aban Company for two projects on artificial intelligence in the field of HSE and EO purification.
IOIV and Bank Tejarat would consider IRR 20,000 billion credit for knowledge-based companies. IOIV has thus far issued over IRR 1,000 billion worth guarantees for such companies.
A trilateral memorandum on financing and supporting knowledge-based companies was also signed between NIOC, Iran National Innovation Fund (INIF) and Bank Tejarat, while an MOU for financing and supporting knowledge-based and technological projects was signed between NIOC, INIF and IOIV.
Iran More Influential Than Oil-Rich State
Minister Zangeneh laid emphasis on the necessity of cooperation with the world with a view to upgrading national power, saying: “In light of the technological potential in the country, I’m sure Iran can have a more important say than just oil and natural resources.”
Noting that agreements are signed following months of studies by managers and experts for technology development based on the capacity of knowledge-based companies, he said: “Undoubtedly, the future of the country is not tied to traditional production; rather it is tied to knowledge-based capacities and development of national technology. However, it would happen only through cooperation with the international community.”
“Without presence in the course of natural competitions in the world we cannot move from the national to the global level. Cooperation with the world is a principle today and we have to pay attention to it,” he said.
Removing Obstacles to Startups
Zangeneh said the Petroleum Ministry had long considered knowledge-based companies, recalling: ‘Petropars, Mapna and Farab are knowledge-based companies that have been instrumental in the development of power and oil industries. These companies are truly sources of honor and pride.”
He said that numerous agreements had been signed with universities over the past eight years with a view to supporting the technological potential of domestic companies.
“Domestic manufacturing of ten groups of commodities like drill bit, seamless pipes, wellhead and downhole equipment was planned and implemented,” he said.
Knowledge-Based Companies
Zangeneh said the petroleum industry had taken two key steps to support technological companies.
“The first one was establishment of petroleum technology and innovation park whose constitution has been endorsed, its organs and location are known and it is currently operating,” he said.
“So far, several technology and innovation parks have been established with the support of Ministry of Science, Research and Technology, but the petroleum park was among the first one in the demand sector,” he added.
Zangeneh said the second step was establishment of IOIV, adding: “This fund is among the first ones created by the demand sector. That is very important, particularly in the petroleum industry. It could be the largest stimulus for economy in this important technological sector.”
“Normally, parks or funds have been established by suppliers. Industrialists or universities have often established it,” he said.
The minister said Petroleum Ministry subsidiaries are legally allowed to spend IRR 8,000 billion from domestic resources on supporting knowledge-based companies and startups.
“With such permission, we can still help IOIV,” he said.
Domestic Products
Zangeneh said a large number of projects would be implemented in the current calendar year through Park of Technology and Innovation and IOIV.
“Reclamation of low-yielding wells and creating demand for knowledge-based companies, buying services from technological companies for desalting through skid-mounted units, energy efficiency projects and offtake agreements, financial support for startups and innovation centers at universities are cases in point,” said the minister.
Zangeneh said the idea of offtake agreements was first brought about a year ago, which is now coming to fruition.
“NIOC is legally authorized to purchase commodities when it is assured of the capacity of manufacturer in terms of quality and timeliness, but at IOIV there is no such restriction,” he said.
Zangeneh said: “In offtake agreements, the relation between the client or final buyer and manufacturer is final and a manufacturer, endorsed by an expert group, can manufacture commodities. If such commodity receives a certificate for quality, we guarantee its purchase to end imports.”
He said any Iranian company calming to be able to manufacture commodities for the petroleum industry without any client can refer to the IOIV website to observe terms of agreements. He said Bank Tejarat would offer loans for such activity.
New Development in Oil Technology
Masoud Karbasian, CEO of NIOC, said the “technological economy” of the petroleum industry was experiencing new developments like the inauguration of IOIV and offtake agreements.
“The cornerstone for these developments was laid when Mr. Zangeneh first visited the Rey Warehouse. This warehouse, with an area of more than 20 ha, was initially planned to be sold so that a new building would be built for NIOC. But the minister