100,000 barrels increase in oil production in the oil-rich areas of the south; a big step towards the Seventh Plan

According to Energy Press, Ramin Hatami, CEO of the National Southern Oilfields Company, wrote in a note: “The year 1404 can be considered a period in which the National Southern Oilfields Company established its position as one of the strategic pillars of the country’s oil industry and one of the main aspects of Iran’s energy portfolio more than ever before. In a situation where the sustainability of energy production plays a direct role in economic stability, national resilience, and the achievement of the goals of the Seventh Progress Plan, the company’s performance can be assessed beyond a mere operational set, in a meaningful connection with the country’s macro-cycle of energy economy.

Within this framework, the Southern Oilfields, by simultaneously focusing on maintaining production, developing fields, improving operational readiness, and increasing the resilience of facilities, was able to increase the average daily crude oil production by about 100,000 barrels in the operational scope of the Karun, Marun, Aghajari, Masjed Soliman, and Gachsaran oil and gas exploitation companies, while compensating for the natural decline in reservoirs; An increase that is the result of a series of field, technical and managerial measures and highlights the decisive role of this company in the sustainable supply of energy to the country.

Simultaneously with this production trend, a protective and environmental approach was pursued as one of the strategic axes of the activity of the southern oil-rich regions. In the field of associated gas collection, since the beginning of the 14th government’s activity, the average daily gas flaring has decreased by more than 345 million cubic feet, and the implementation of two important associated gas collection projects with the participation of Maroon Petrochemical and Persian Gulf Holding has reached approximately 80% progress; projects with a capacity of approximately 800 million cubic feet per day that play an effective role in improving the efficiency of the country’s energy portfolio and fulfilling the tasks of the Seventh Progress Plan.

Implementation of the largest flare gas collection project with the participation of private companies

Following this path, the implementation of the largest flare gas collection project in the country, centered on the participation of private and knowledge-based companies, is considered a milestone in the management of associated gases. The daily collection of more than 520 million cubic feet of flare gas, annual profitability of more than $300 million, attraction of $518 million in private sector investment, creation of more than 1,500 direct job opportunities in the provinces of Khuzestan, Kohgiluyeh and Boyer-Ahmad, and a significant reduction in environmental pollutants by shutting down 270 flares and preventing the daily emission of 29,000 tons of greenhouse gases, are some of the achievements of this national plan. The implementation of the Behsuz project and the complete elimination of smoke from 21 tall flares around the city of Ahvaz is also considered a clear symbol of the integration of industrial development and environmental protection in this context.

In the field of infrastructure, 1404 (2025) was accompanied by the operation of 22 important industrial, construction and environmental projects with a credit of 48 trillion tomans and 194 million euros; projects that were implemented mainly in Khuzestan province and partly in Kohgiluyeh and Boyer-Ahmad provinces and played an important role in strengthening the production capacities, safety and sustainability of facilities. This sustainability was completed by setting a new record in the field of major repairs of facilities and process equipment, such that hundreds of process equipment, dozens of gas processing plants and more than 200 heavy machinery units underwent major repairs.

In addition to these operational measures, another central approach of the southern oil-rich regions was a conscious move towards strengthening the role of the private and non-governmental sector in the upstream value chain of the oil industry; an approach that was pursued not for the sake of mere delegation, but with the aim of increasing production sustainability, improving productivity, reducing project risks and making maximum use of domestic technical and capital capacities. In this context, the signing of guaranteed purchase contracts for drilling services and crude oil processing services was put on the agenda as a strategic tool to create investment certainty and continuity of development activities.

Ensuring sustainable oil production; from drilling to processing

After going through detailed technical and economic processes and verifying the investment capacity of the applicants, the guaranteed purchase contracts for drilling services paved the way for the targeted entry of the private sector into one of the most key production cycles. The provision of 20 onshore drilling rigs with a capacity of 2,000 horsepower and planning to drill hundreds of new wells is not only a reliable support for maintaining and increasing production, but also directly leads to the creation of sustainable employment in underserved areas and the activation of a chain of related industries and services; an issue that, along with production benefits, has tangible social and economic effects.