TEHRAN - Iran's oil minister announced plans to finalize $6.0 billion worth of contracts to boost pressure at the South Pars gas field, which is a top national priority.

According to Mehr News Agency, Mohsen Paknejad stated on Tuesday, December 24, during a meeting with the parliamentary Article 90 Commission members, that implementing pressure-boosting facilities at South Pars is vital for the country.

He added that the financial arrangements for the project have been secured.

Paknejad explained that necessary legal frameworks are in place for investments by energy-intensive industries, including petrochemical and steel holdings, in the country's gas fields.

He noted that private investors could recoup their contributions through gas deliveries after production begins.

Highlighting structural issues in the country’s energy sector, the minister said: "The current energy imbalance stems from years of underinvestment in upstream sectors."

While the Oil Ministry oversees production and investment in gas fields, he mentioned that partial relief could come from gas imports and swaps, though these measures alone are insufficient to resolve the imbalance.

EF/MA