A total of 60% of the two-billion-dollar agreement concluded between the Iranian Presidential Deputy for Science, Technology and Knowledge-based Economy and the Iranian Ministry of Petroleum was realized by the agreements signed on May 11, 2024 on the localization of coiled tubing and CRA pipes for petroleum and gas wells among the Presidential Deputy for Science, the National Iranian Oil Company and three knowledge-based companies in the amount of 525 million dollars.

The signing ceremony of these agreements was held in the 28th International Oil, Gas, Refining and Petrochemical Exhibition in the presence of the Presidential Deputy for Science, the Minister of Petroleum and a group of deputies of this ministry.

These two agreements were signed in line with the cooperation agreement signed in January, 2023 on the localization of bottleneck technologies and equipment needed by the petroleum industry between the Presidential Deputy for Science and the Ministry of Petroleum.

Construction of 2 new strategic equipment starts in line with agreement on localization of bottleneck equipment for petroleum industry

The two-billion-dollar agreement included seven items of strategic equipment, the construction of two which – a rotary steering system (RSS) and a small-scale liquified natural gas (mini LNG) system – began last year, and the localization of two other equipment including coiled tubing and CRA pipes of petroleum and gas wells started following the signing of these two agreements.

The coiled tubing localization agreement in the amount of 25 million Euros was signed among the National Iranian Oil Company's management for support, manufacturing and product supply, the Presidential Deputy for Science and a knowledge-based company, and the localization agreement for CRA pipes of petroleum and gas wells in the amount of 500 million euros was signed among the National Iranian Oil Company's management for support, manufacturing and product supply, the Presidential Deputy for Science and two knowledge-based companies.

Corrosion-resistant alloy (CRA) pipe is one of the high-use equipment that has always been supplied through imports in the more than one-hundred-year life of Iran's petroleum industry, and signing contracts with technology owners in this field with the aim of transferring technology, acquiring technical knowledge and not needing imports in the coming years is one of the examples of resistance economy.

Also, the completion of petroleum and sour gas wells requires anti-corrosion tools, the most important of which are the pipes required to complete wells with a special alloy known as CRA. The exorbitant costs of supplying the aforementioned pipes from abroad, as well as the very long delivery schedule from the time of signing the contract to the delivery of the goods, and the future development plans of the petroleum and gas fields have turned attention to the construction of these pipes inside the country.

2 new fields added to localization agreement for bottleneck equipment of petroleum industry

Considering the successful experience of the localization agreement for the bottleneck equipment of the petroleum industry, 60% of which has been achieved in the last 15 months, the Presidential Deputy for Science and the Ministry of Petroleum /National Iranian Oil Company also added two new things to the seven topics of the initial agreement by signing two other agreements.

With the signing of these two agreements, another 250 million dollars will be added to the initial two-billion-dollar agreement for the localization of bottleneck technologies and equipment needed by the petroleum industry.

One of these agreements on "Development of knowledge-based economy in refining industries, renewable energy and related chain" in the amount of 200 million dollars was signed by Dr. Soltanalizadeh, the assistant to the Presidential Deputy for Science in the field of knowledge-based market development, Farhad Dehghan, CEO of Sepahan Oil Company, and Nouroddin Musa, chairman of the board of Sepahan Oil Company. The other agreement on "Hydraulic failure" in the amount of 50 million dollars was signed by Soltanalizadeh and Ozzari, CEO of Arvandan Oil and Gas Company.

11 new first-time production agreements signed

In addition to the above-mentioned agreements, 11 new first-time production agreements totaling 57,927,836 dollars were signed by the National Iranian South Oil Company, Petroleum Engineering and Development Company (PEDEC) and Iranian Offshore Oil Company as employers and 11 knowledge-based companies.