Iran signs USD13 billion worth of new oil agreements

(MENAFN) Iran's energy sector has taken a significant step forward with the signing of contracts worth USD13 billion aimed at enhancing production levels at major oil fields. State media reported that the agreements, signed in the presence of Oil Minister Javad Owji and National Iranian Oil Company (NIOC) Managing Director Mohsen Khojastehmehr, represent the largest contracts granted to Iranian energy companies in the past decade.

The signing of these contracts, occurring just two days before the 73rd anniversary of the nationalization of Iran's oil sector, marks a pivotal moment for Tehran's ambitions in the energy industry. Previously, Iranian oil fields had been under the control of the British-controlled Anglo-Iranian Oil Company.

This move is part of Iran's broader strategy to harness its local resources and develop its energy sector. Last week, Iran announced the awarding of USD20 billion in contracts to domestic companies to ramp up production from the offshore South Pars gas field, which is shared with Qatar.

The focus of the output increase will be on six key fields, including Azar and Azadegan, Iran's largest oil deposit, as well as Masjed Soleyman, the oldest producing deposit in the Middle East.

Notably, the Azar and Azadegan fields are shared with Iraq along Iran's western and southwestern borders.

Iran's pivot towards local energy firms gained momentum following the withdrawal of most multinationals from the country's energy market in 2018. This exodus was prompted by the unilateral withdrawal of the United States from the 2015 Iran nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), by former President Donald Trump.

As Iran forges ahead with its plans to expand its energy production capabilities, these new contracts underscore the country's determination to assert its independence and resilience in the face of geopolitical challenges and international sanctions.

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