Iran Allocates $2 Billion to Enhance Oil Production and Quality Amid Economic Pressures

The National Iranian Oil Company has finalized investment contracts totaling over $2 billion, aimed at strengthening the Iranian energy sector despite facing economic difficulties and international sanctions, with Iranian President Masoud Bezhakian in attendance.

Key Focus Areas of the Contracts

The agreements concentrate on two primary objectives:
Expanding Drilling Capabilities:
This initiative includes the acquisition of guaranteed drilling services and the addition of 20 new drilling rigs to Iran's existing fleet.
This strategy is intended to boost operational capacity and enhance domestic oil and gas production in the medium term.
Improving Crude Oil Quality:
The contracts also involve the procurement of advanced and quickly deployable processing services.
This technology is anticipated to significantly upgrade the quality of Iranian crude oil.

Supporting Production Goals

These investments are part of Tehran's broader strategy to advance its oil and gas sector, where enhancing local drilling and processing capabilities will bolster Iran's production goals while decreasing dependence on foreign resources.