Ministry of Petroleum The Ministry of Petroleum of the Islamic Republic of Iran is a state-run organ affiliated with the Executive branch of government. The Ministry is tasked with exercising the principle of Iran’s ownership of and national sovereignty over oil and gas resources as well as separating governance from administrative tasks in the development of oil and gas industry. The Ministry of Petroleum was established several months following the Islamic Revolution in 1979. The structural organization of the Ministry comprises a head office and four main subsidiaries – National Iranian Oil Company (NIOC), National Iranian Gas Company (NIGC), National Iranian Oil Refining and Distribution Company (NIORDC) and National Petrochemical Company (NPC). Through subsidiaries, the Ministry supervises exploration, extraction, marketing and selling of crude oil, natural gas and petroleum products in the country. The Ministry of Petroleum of the Islamic Republic of Iran was established with a view to exercising the principle of Iran’s ownership of and national sovereignty over oil and gas resources as well as separating governance from administrative tasks in the development of oil and gas industry.
Born in Shiraz, 1966
National Iranian Oil Company (NIOC) has since 1951 been tasked with arranging petroleum industry activities including exploration, drilling, production, research and development, oil and gas exports, and associated policymaking. Owning huge hydrocarbon reserves, NIOC is one of the largest oil companies in the world. As science and technology make progress in the petroleum industry and political and economic ties become more complicated, NIOC has seen its standing improve. Therefore, national and regional policies and cooperation with top industrialized nations in energy supply and bringing stability to global oil markets top NIOC agenda. NIOC’s administrative organization is as follows: Management (Directorate of International Affairs, Directorate of Research and Technology, Directorate of Corporate Planning, Directorate of Coordination and Supervision on Oil and Gas Production, Directorate of IT and Communications, Directorate of Human Resources Development, Directorate of Financial Affairs, Directorate of Legal Affairs, Directorate of Exploration, Directorate of HSE, Project for Assisting Oil-Rich Zones Development); Top Administration (Public Relations, Vetting Board, Security, Inspection, Complaints, Internal Audit); Organization (Research Institute of Petroleum Industry, Petroleum Industry Health Organization, National Iranian Gas Export Company, Iran Fuel Conservation Organization, Pension, Saving and Welfare Funds); Production companies (National Iranian South Oil Company, Iranian Central Oil Fields Company, Pars Oil and Gas Company, Iranian Offshore Oil Company, Arvandan Oil and Gas Production Company, Khazar Exploration and Production Company) and Technical services companies (National Iranian Drilling Company, Petroleum Development and Engineering Company, Tehran Kala Naft Procurement and Manufacturing Support Company, Iran Oil Terminals Company, Pars Special Economic Energy Zone Organization).
The daily increasing demand for gas to supply energy and fuel and generate hard currency from gas exports for investment in parent and infrastructure industries set the foundation for centralizing activities related to the gas industry. National Iranian Gas Company (NIGC) was established in 1965 based on legally enacted Articles of Association with an initial capital of IRR 25 billion. In parallel with economic and social development in the country and by using gas as a major source in supplying fuel and generating energy and revenue, NIGC has since enhanced its capabilities and engaged specialized manpower and achieved necessary advanced machinery and equipment to carry out gas-associated operations. Today, NIGC is able to handle all gas-associated affairs by itself in accordance with internationally recognized standards. NIGC is now one of the top ten in the Middle East. It supplies more than 75% of Iran’s gas needs. Enjoying a significant standing both internally and externally, NIGC has restructured itself based on its needs and extent of activities.
National Iranian Oil Refining and Distribution Company (NIORDC) was established by March 1992 in line with the Petroleum Ministry policy of separating upstream activities (crude oil and gas exploration and production) from downstream activities (transfer of crude oil and petroleum products, refining, exporting, importing and distributing petroleum products). Currently one of the main four subsidiaries of the Ministry of Petroleum, NIORDC is tasked with steering the operations of its own offshoots – National Iranian Oil Products Distribution Company (NIOPDC), Iranian Oil Pipeline and Telecommunications Company (IOPTC), Abadan Oil Refining Company, Imam Khomeini Oil Refining Company, National Iranian Oil Engineering and Construction Company (NIOEC) and Oil Refining Industries Development Company (ORIDC). NIORDC’s missions are divided into production, transfer and distribution (as links of downstream activities value chain); production, transfer, storage and distribution of petroleum products across the country by making efforts in favor of upgrading the quality of products and showing strong presence in regional and global markets through interaction with neighboring and regional nations in swapping or transacting crude oil and petroleum products as well as joint investment. Furthermore, NIORDC is tasked with providing engineering and telecommunications services to supply chain companies. NIOPDC, a key subsidiary of NIORDC, is distributing domestically-manufactured or imported petroleum products and manage filling stations across the country. It also monitors the proper activity of gas stations, CNG stations and aviation fueling centers.
The petrochemical industry in Iran dates from the 1950s. In late 1950s, the then Ministry of Economy established a chemical agency to promote the petrochemical industry in Iran. In 1958, a chemical fertilizer plant was constructed in Marvdasht in Fars Province. As the growth of the petrochemical industry required broader specialized activities and further coordination with the oil and gas industry, an organization was needed to be established to develop and lead the petrochemical industry. That was why in 1963, National Petrochemical Company (NPC) was established under the authority of National Iranian Oil Company (NIOC). All activities related to the petrochemical industry were centralized under NPC. NPC has since operated development plans, achieved a high standing and made maximum use of relative advantages in the country to be more effective in the region and the world. Evidence of such presence is seen in changes in economic variables and indicators like production, export, investment, value-added and share of national production, reginal partnership and extent of export markets. After all production companies were privatized, NPC – relying on more than five decades of experience and enjoying human and intellectual capitals – is engaged in macro-planning, policymaking, regulation, arrangement, facilitation and support of sustainable development of the petrochemical industry with a view to reducing raw materials sales and completing the petrochemical value chain. Laying emphasis on social responsibility, NPC is instrumental in national economic development and upgrading the quality of life by protecting the environment and national resources, creation of value, accountability, and respecting the rights of stakeholders.
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