20 May Iran to Take the Reins in Domestic Oil and Gas Drilling Projects

New reports indicate that Iran may have the resources needed to expand its domestic oil and gas drilling projects significantly in the near future.

According to a December 27 Mehr News Agency article, Dariush Raeisi, a senior official from the National Iranian Drilling Company (NIDC), has stated that Iran is even capable of manufacturing its own oilfield equipment and drilling rig systems. Until now, Iran has largely imported this equipment from foreign drilling rig companies, most often from China.

Raeisi said the NDIC currently owns just 68 drilling rigs and is leasing another five from various production rigs manufacturers. Only three of Iran’s rigs are actively drilling in the sea, with the rest stationed on land.

With an influx in production among Iran’s drilling rig companies, Raeisi told the Mehr News Agency that this number will grow to 95 within the next five years, granting a significant boon to domestic manufacturing and industry. About 60% of the equipment needed to construct the rigs will be made domestically, and the rigs themselves will be constructed entirely within the country.

With these newly-constructed rigs that feature up-to-date technology, it’s safe to assume that Iran’s oil production will benefit immensely.

According to the Mehr News Agency, the NIDC launched a 12.5-million euro drill rig, called the Fath-93, that can drill onshore oil deposits as deep as 6,000 meters. Compared to Iran’s oft-outdated drill rigs, the Fath-93 promises to successfully seek out oil-rich deposits much more successfully.

For a country rich in natural oil reserves like Iran, upgrading the technology to take full advantage of these reserves is a necessity.

What are your thoughts on this story? Should Iran be trying to increase its oil drilling initiatives when the current market outlook for oil is so dire, or will the boost in domestic manufacturing make up for it? Share your thoughts with us by leaving a comment below.