Reducing the risk of private investment in the oil industry

According to Energy Press, Ali Dqayqi, in a conversation with Shana news reporter, stated that by purchasing drilling services under a public-private partnership framework, we have taken a significant step towards increasing production from fields. He expressed that Petro Iran Development Company by signing a contract to purchase drilling from the National South Oil and Gas, is participating in the nation’s and gas production increase plan. He noted the necessity of increasing production the oil and gas industry and the of drilling rigs in the country. He announced that this contract, under a-private partnership, was signed for 2000 horsepower drilling with the National South Oil and Gas, in the presence of the President Oil Minister, and CEO of the Iranian Oil Company.

The CEO of Petro Iran Development Company stated that company and its subsidiaries, including theilling International Company, with a history executing oil and gas projects and offshore, have the necessary capabilities to participate this national plan.

Why public-private partnership?

Regarding advantages of the public-private partnership model, Dqayqi stated: In this model, the company’s activity is guaranteed for five years, which reduces investment risk and provides the possibility of long-term planning.

In response to a question about the investment volume in this contract, he said: The investment volume for this project is approximately 200 million dollars, of which 15% is provided as a pre-payment by the National Oil Company, and the rest will be done through financing and the participation of financiers. Repayment will be made over the five-year contract period.