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Petchem Investments Forge Win-Win Collaboration with NIOC

Petchem Investments Forge Win-Win Collaboration with NIOC
(Thursday, May 2, 2024) 15:34

TEHRAN (NIPNA) - The CEO of National Iranian Oil Company (NIOC) hailed the collaborative investment ventures between petrochemical companies and the national oil sector as mutually beneficial. He emphasized the pivotal role of the people as primary investors in petrochemicals and holdings, underscoring their involvement in upstream projects through these agreements.

Mohsen Khojastehmehr, CEO of NIOC, remarked on this significant economic milestone during the signing ceremony of agreements to study the development of 16 gas fields in collaboration with holdings, petrochemical companies, and domestic exploration and production firms.

"We are witnessing one of the crucial economic events in the oil industry with people's participation today. Direct and indirect investments are essential for achieving production goals, a foundation laid in the thirteenth government," Khojastehmehr stated.

He highlighted the innovative initiative that facilitated the involvement of petrochemicals in the upstream sector, previously restricted to exploration and production companies.

"Previously, only exploration and production companies could invest in the oil industry. However, with the ingenuity of the Petroleum Minister and necessary coordination with the government, petrochemicals can now engage in upstream activities," he explained.

Reflecting on past successes, Khojastehmehr mentioned the groundbreaking $13 billion contract resulting from banking investments in the oil industry, particularly in the development of shared gas fields.

"With the finalization and implementation of today's agreements, over 16 gas reservoirs in the country will undergo development. These projects will add 127 million cubic meters to the country's gas production capacity in four provinces: Khuzestan, Fars, Bushehr, and Kohgiluyeh and Boyer-Ahmad," he elaborated.

Khojastehmehr also praised the ongoing collaboration between the private sector and petrochemical holdings, labeling the current year as witnessing a second surge in petrochemical investments. He emphasized the strategic significance of these investments, which offer attractive, high-yield, and revenue-generating contracts.

Describing the investments as a win-win scenario for both the NIOC and petrochemical investors, Khojastehmehr emphasized the substantial role of the Iranian populace as shareholders in both small and large petrochemical enterprises.

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