Refining and Distribution CEO: Technological opportunities in the refining industry are vast; the move towards data-driven management is gaining momentum

According to Energy Press, Mohammad Sadeq Azimifar, speaking at the ceremony to celebrate the Research Week at the National Iranian Petroleum Refining and Distribution Company (NIPRD) today (Wednesday, December 16), referred to the challenges facing the country’s energy industry and stated: Today, industries, especially in the energy sector and in particular the refining and distribution sector, are facing numerous issues, including imbalances, consumption growth, severe resource constraints, sanctions, complexity of the distribution network, and environmental requirements, which have inevitably exposed us to difficult decision-making and implementation measures.
He stated that the traditional and sectoral approaches that have prevailed in the past are ineffective and added: If these approaches were effective, today we would have witnessed improvements in key performance indicators, not just declines. Accordingly, our belief at the NIPRD is that in order to overcome these challenges, we are forced to transform and change our approach in decision-making, implementation, and governance.
Drafting a strategic document for the refining and distribution industry
The CEO of the National Iranian Petroleum Refining and Distribution Company, pointing out that a strategic document was drafted in the refining and distribution sector during the 14th government based on a detailed assessment of the current conditions, weaknesses, and challenges ahead, stated: Under this document, 6 main strategies have been formed and are on the agenda as a roadmap and major direction for the National Iranian Petroleum Refining and Distribution Company. Despite limited resources, effective and tangible steps can be taken to improve indicators that are not in a desirable state today by improving productivity and using existing capacities intelligently.
Azimifar emphasized that research and technology should not be on the sidelines, but should be at the center of decision-making and implementation, adding: This is not just a slogan, and short-term experiences show that a technological approach and the use of new tools can bring significant returns to the National Iranian Petroleum Refining and Distribution Company.
Stating that research should focus on solving real industry problems, he said: Technology is effective when it is implemented on an operational scale, not just at the laboratory level. On the other hand, integration in the field of research and technology is also of particular importance.
The necessity of an integrated and comprehensive view in the field of research and technology
The Deputy Minister of Oil reminded that the refining and distribution industry has 10 refineries, about 15,000 kilometers of pipelines, 37 distribution areas, about 70 to 80 warehouses, more than 5,100 liquid product supply points and about 2,400 CNG points, and this expansion requires an integrated and comprehensive view in the field of research and technology.
Emphasizing that digital transformation and smartization are not a symbolic measure, but a fundamental principle and agenda in the company’s plans, Azimifar stated: About $55 billion worth of products are produced and distributed in the refining industry chain annually, and smart management of this volume of resources is an inevitable necessity.
Referring to the significant waste of resources in the country’s fuel chain, he said: “Estimates show that about $7 to $8 billion in smuggled petroleum products are lost annually, and a significant portion of these products are also wasted in the field of consumption. In addition, we have a wealth of data in the production, transmission, and distribution chain of petroleum products and crude oil, which together represent a huge opportunity to increase productivity and move from intuitive and traditional management, especially in the transmission and distribution sector, towards data-based management and the use of smart tools.”