TEHRAN – Iranian Oil Minister Bijan Namdar Zanganeh said a package of investment to the tune of $5 billion has been prepared aiming to boost the country’s oil output within the next two years.

Zanganeh said the fund will be allocated to repair operations in the existing oil wells and also digging new wells.

The minister said that the mentioned fund is planned to be secured from Iranian companies, each can also have a foreign partner, IRNA reported.

The planned $5-billion package will comprise smaller packages of $300-million, he explained.

The official further mentioned the country’s new model of oil contracts (known as IPC) saying, “The progress of negotiations with foreign companies for developing oilfields based on IPC is good and acceptable”, Shana reported. 

According to Zanganeh, the Oil Ministry’s policy is to choose contractors for all the country’s joint fields within four years to accelerate the development progress.

Elsewhere in his speech, Zanganeh stressed the petrochemical sector and noted that alongside the basics in petrochemical industry, the midstream and downstream sectors should be considered seriously, as well,” 
“Cooperating with the Ministry of Industry, Mining, and Trade we can empower these sectors,” he added.

Zanganeh also mentioned reducing flare gas in the fields and said, eliminating routine flaring should be commenced within four years.

EF/MA