TEHRAN – Twelve contracts for the recovery and sale of flare gas from oilfields in southern Iran were signed on Saturday via video conference in the presence of President Masoud Pezeshkian and Oil Minister Mohsen Paknejad, according to the National Iranian Oil Company (NIOC).

The agreements cover the recovery of 295 million cubic feet per day of flare gas from the Rag Sefid 1 and 2, Golkhari 3, Bibi Hakimeh 1 and 2, Koupaal Bangestan, Ahvaz 1, 3 and 4, Lali, Nargesi, Haft Shahridan and Zilayi fields. Officials described the initiative as a successful example of private sector participation and foreign technology transfer.

With an estimated investment of $800 million, the projects are expected to be completed within two years, leading to the shutdown of about 30 flares and preventing the daily waste of over 295 million cubic feet of gas. The initiative will also generate roughly $550 million in annual revenue, produce around 800,000 tons of gas condensate per year, and inject 200 million cubic feet of light gas into the national network — helping to balance energy supplies during the cold season.

NIOC Managing Director Hamid Bovard said the signing marks a new phase in Iran’s comprehensive flare gas recovery plan. Under the Seventh Development Plan, the oil industry aims to raise crude output to 4.5 million barrels per day, boost gas production to 1.3 billion cubic meters per day, and eliminate most flaring.

He added that new processing capacity of 520,000 barrels per day is being developed through build–own–operate (BOO) contracts with private firms, while gas field projects worth $1.6 billion — including Madar, Pazen and Gordan — target an additional 45 million cubic meters per day in output.

Bovard said the flare recovery plan will recycle about 1.9 billion cubic feet of gas within two years — nearly 90 percent of recoverable flared gas — and cut carbon emissions by 5,700 tons per day. The contracts will enter execution phases within six to 18 months.

He noted that the first mini-NGL plant, financed by foreign investors, and a modular refinery with a 45 million cubic feet capacity in Masjed Soleyman are also part of the program. A new tender has been issued for 18 additional investment packages to collect gas from 42 more flares at zero base cost.

Bovard concluded that the initiative represents a major step toward sustainable development, environmental protection, and national energy balance.

EF/MA