TEHRAN – the National Iranian Oil Company (NIOC) has signed memorandums of understanding (MOUs) worth $6.4 billion with local companies to increase the country’s natural gas output by 127 million cubic meters.

Based on the MOUs, signed in a ceremony on Tuesday, domestic petrochemical holdings and exploration and production companies will conduct development studies on 16 gas reserves across the country, Shana reported.

The signing ceremony of the mentioned MOUs was attended by senior officials, including Oil Minister Javad Oji, NIOC Head Mohsen Khojasteh-Mehr, and the Head of National Petrochemical Company (NPC) Morteza Shahmirzaei.

With the implementation of the mentioned development projects, in total, about 127 million cubic meters will be added to Iran's gas production capacity, which can play an important role in compensating for gas imbalance in the cold season, providing stable feed for petrochemical complexes, and increasing Iran's gas exports.

The completion of the said projects is also expected to create 25,000 direct and indirect job opportunities, especially in the provinces and cities where the projects are implemented.

As reported, part of the gas output of the projects is going to be used by the petrochemical complexes conducting them as feedstock.

79 semi-finished projects to be completed by March 2025

Speaking at the signing ceremony, Oil Minister Javad Oji said 79 major semi-finished oil industry projects with a total investment of $16 billion are going to be completed in the current Iranian calendar year (ends in late March 2025).

According to Oji, 50 new projects with a total investment of $25 billion will also be started in the current year.

Announcing that Iran's oil production will increase significantly this year, the official said: “We will also face an increase in gas production.”

“Six million tons will be added to the country’s annual petrochemical production capacity and 50,000 barrels will be added to the oil refining capacity of the country,” he added.

EF/