Speaking to Shana, NIOC’s managing director said that the under the fifth five year development plan terms (2010-2015), the country’s oil production capacity should be increased to 5 million barrels per day and gas production to 1.4 billion cubic meters per day adding under the five year plan rules, NIOC is obliged to transfer some oil production operations to private sector.
‘Under the fifth five year development plan’s article 125 NIOC should transfer some operations in upstream sector including exploration, development and production of hydrocarbon resources to private sector’, Qalebani said.
Fifth five year development plan’s article 125 announces that petroleum ministry is authorized to create the environment for competition and to give licenses for exploration, development and production from oil and gas wells which imply paving the way for participation of qualified private sector’s companies in upstream activities.
NIOC is drafting the related contracts in order to follow the fifth five year development plan’s rules on private sector participation in upstream sector activities, the official said adding private sector will participate in development of oil and gas wells under the supervision of NIOC in lawful frameworks.
According to Qalebani oil and gas fields are among the inherent assets of the National Iranian Oil Company adding ‘transferring operations to private sector’
Elsewhere in his remarks, Qalebani said that participation of strong private sector companies in upstream sector activities would lead to increasing productivity in the sector adding based on related contracts private sector can participate both in development of independent and shared oil and gas fields ‘even though it is obvious that development of shared oil and gas fields are our first priority’.
On paying back private sector’s investments, the official noted that like many other countries private sector can take part of the produced oil or gas as fee adding NIOC is engaged in setting related rules and regulations.
Meanwhile a conference which is due to be held this week will discuss new ways of investment, new contracts on development of upstream sector projects and the way of private sector’s participation in these activities.