The National Iranian South Oil Company (NISOC) has signed more than 30 investment contracts aimed at increasing oil production, reducing gas flaring, and enhancing operational capabilities, according to the Director of Investment and Business Development at the National Iranian Oil Company, Amir Moghiseh.

During a recent visit to review NISOC's investment projects, Moghiseh highlighted the growing role of private and non-governmental sectors in Iran’s upstream oil industry. He noted that the contracts, signed primarily in the second half of last year, focus on three main areas: the collection of associated and flare gases, crude oil processing, and the provision of onshore drilling rig services.

In efforts to curb gas flaring, 23 contracts have been awarded to private entities to facilitate the collection of associated gases. These projects are expected to enable the shutdown of 57 gas flares in Khuzestan province. According to Moghiseh, implementation continues, with projections indicating the capture of approximately 400 million cubic feet of associated gas by the end of the current year. During Iran’s Government Week, plans are in place to collect and prevent the burning of 40 million cubic feet of flare gas in the Khuzestan region.

Expanding crude oil processing capacity constitutes the second focus area. Seven contracts have been signed to procure processing services through skid-mounted rapid-installation equipment across seven oil fields. This initiative is projected to boost the country’s oil processing capacity by 380,000 barrels per day, representing nearly 11 to 12 percent of Iran’s current processing ability. Moghiseh reported that some projects are advancing on or ahead of schedule and indicated that continued investor support could bring parts of these developments online earlier than initially planned.

The third axis of investment involves services for 18 onshore drilling rigs, which are essential for maintaining and increasing production from Iran’s onshore oil fields. Moghiseh emphasized that these services are critical prerequisites for sustained growth and operational stability in the sector.

As Iran seeks to enhance its oil output and reduce environmental impacts associated with gas flaring, the involvement of private and non-governmental sectors appears central to NISOC’s strategy moving forward.