TEHRAN – Many of National Iranian Oil Company (NIOC)’s contracts with domestic manufacturers of oil industry equipment have reached over 70 percent of physical progress, IRNA reported on Saturday.

As reported, of the total 88 contracts for indigenizing necessary oil industry equipment, 33 contracts which were signed for manufacturing 10 major equipment have witnessed more than 70 percent progress, and another 50 contracts have also had over 49 percent of physical progress on average.

The mentioned contracts have been signed with capable domestic companies for manufacturing all kinds of oil industry equipment, including down hole tools and equipment, pumps, types of drill bits, all kinds of control and safety valves, and accessory equipment, as well as various pipe types, explosion-proof electro motors, turbines, compressors, alloy steels, drilling measuring tools, and etc.

Following the re-imposition of U.S. sanctions and the problems caused by high volatility and rising exchange rates in the country’s currency market, Iran’s oil ministry was faced with some problems regarding the supply of necessary equipment in the oil industry, so it applied new strategies to focus more on domestic production.

In this regard, NIOC and its affiliated companies, like National Iranian Drilling Company (NIDC), signed some deals with domestic manufacturers to produce the necessary equipment inside the country.

NIOC plans to award the production of 300 new equipment items to domestic producers by the end of the current calendar year (ends on March 19, 2020).

Earlier in August, NIDC’s managing director announced that the company was collaborating with 230 local manufacturers, especially in Khuzestan Province, to indigenize drilling equipment.

"NIDC's Technology and Engineering Department has indigenized 2,000 pieces of drilling equipment since 1997, most of which are being used in offshore and onshore rigs," Abdollah Mousavi was quoted as saying by the Oil Ministry news portal.

EF/MA