TEHRAN – Iranian Oil Minister Javad Oji has said domestic producers are currently supplying over 70 percent of the oil industry’s needed equipment, adding that this figure can increase to 95 percent, Shana reported.

Speaking in a meeting with the representatives of the country’s oil and gas equipment manufacturers, Oji said: “Currently, a major part of the equipment and parts needed by all sectors (upstream and downstream) are supplied by domestic manufacturers.”

The minister noted that various meetings have been held with domestic executors and contractors to ensure the implementation of the oil industry projects, adding: “We have also had several meetings with members of parliament about the next year’s budget bill because since most of the budget funding comes from the oil industry we have to pay close attention to it.”

The indigenization and domestic production of oil and gas industry equipment have been always among the objectives of the Iranian Oil Ministry. However, the issue became further highlighted since the re-imposition of the U.S. sanctions and Washington’s determination for cutting off the Islamic Republic’s ties with the world advances in knowledge and technology, especially in the oil and gas sector.

In the past few years, the ministry has been seriously supporting knowledge-based companies and startups, and in this regard, several events, exhibitions, and panels have been held to encourage the mentioned companies’ contribution to the country’s oil and gas industry.

Back in November 2021, Head of the Iranian Petroleum Industries Equipment Manufacturers Association (IPIEMA) Majid Mohammadpour said the Oil Ministry was going to define new mega projects in which commodities manufactured by the country’s oil equipment builders would be used.

Mohammadpour noted that 40 percent of the construction capacity of the members of the IPIEMA is not being used, saying: “in order to completely use this domestic production capacity, new megaprojects in the oil industry are to be defined.”

Underlining the positive steps taken by the new government administration, Mohammadpour said currently 85 percent of the equipment used in the country’s oil, gas, and petrochemical industry is provided by domestic manufacturers.

The official noted that currently the knowledge for the production of 10 equipment groups including turbines, compressors, and catalysts have been indigenized and 10 new groups are also going to be added to this list in the near future.

According to Mohammadpour, in addition to supplying domestic needs of the country’s oil, gas and petrochemical industries, the equipment and parts manufactured in the country are also exported to other countries like Turkmenistan, Qatar, Venezuela, Iraq, and Syria.

Referring to the 25-year Iran-China Comprehensive Cooperation Plan, he stressed: "Preparations must be made in the industrial sector. With regard to many types of equipment, we have been able to build equipment similar to Chinese ones with lower prices, and we can be superior in this agreement."

EF/MA