TEHRAN - The Iran Exploration Company and the National Iranian Drilling Company (NIDC) signed a contract on Sunday with the Dana Energy Drilling Company of the private sector for drilling 20 exploration wells.

The National Iranian Oil Company (NIOC) exploration affairs manager, the NIDC managing director, and the Dana Energy Co. managing director attended the signing ceremony and said that two derricks will drill the 20 exploration wells over the course of five years.
The contract states that the Dana Energy Drilling Company, in collaboration with NIDC, will implement the project which was commissioned by NIOC.
NIDC will be the contractor for the services and the Dana Energy Drilling Company will conduct the project’s drilling operations.
NIOC Exploration Affairs Manager Mahmud Mohaddes gave an address at the ceremony in which he expressed hope that new gas and oil deposits would be discovered in different parts of country during the drilling project.
He said the project provides an opportunity for the private sector to play a more active role in drilling operations, adding that the contract will also pave the way for companies like NIDC to share their experiences.
He stated that it was decided to make the contract a 5-year deal because officials believe more long-term deals must be offered to convince contractors to invest in the drilling industry.
“Since drilling plays a key role in oil and gas exploration and development, the contract prioritized the selection of Iranian contractors,” Mohaddes said.
The NIDC managing director also spoke at the ceremony, saying that several exploration operations have been conducted in Iran since the victory of the Islamic Revolution in 1979, including exploration operations in 15 onshore and 5 offshore gas fields.
Heidar Bahmani added that the drilling operations carried out since 1979 were remarkable as 61 onshore wells and 9 offshore wells have been drilled in the country and four have been drilled in Turkmenistan.
The cooperation and collaboration between the exploration and drilling sectors have raised the profile of Iran’s drilling industry in the international arena, the official boasted.
The managing director of the Dana Energy Drilling Company told the ceremony participants that the contract will pave the way for more private sector companies to become involved in drilling projects and will give a boost to the country’s oil exploration sector.
He went on to say that companies must coordinate their activities when implementing major projects