Iran Oil Company Cutting Dependency on Foreign Equipment, Parts

EghtesadOnline: National Iranian Drilling Company, a subsidiary of the National Iranian Oil Company, is collaborating with 230 local manufacturers, especially in Khuzestan Province, to indigenize drilling equipment, the company’s managing director said.

News ID: ۷۴۸۲۳۸

25 August 2019

"NIDC's Technology and Engineering Department has indigenized 2,000 pieces of drilling equipment since 1997, most of which are being used in offshore and onshore rigs," Abdollah Mousavi was quoted as saying by the Oil Ministry news portal.

Underscoring the role of quality, he said the indigenized well-head and in-well equipment range from drilling bits, electric brakes, traction motor, casing wrench to fluid pumps, pipes and valves.

Out of the approximately 1.2 million equipment required in the oil industry, 800,000 is produced domestically, including turbines, compressors, pumps, meters, filters and catalysts, Financial Tribune reported.

In 2016, the company manufactured the 20-inch RTTS pipe, a full opening, hook wall type packer that can segregate bidirectional pressure designed for use in testing, treating and squeeze cementing operations.

"The piece was manufactured under the direct supervision of NIDC engineers in oil-rich Khuzestan Province. It is also being used in Azadegan Oilfield casings."

The official said his company accounts for 65% of the drilling market share in Iran. Experts and informed observers say drilling and exploration has never been more challenging as the number of reserves is dwindling, and this shows why drilling equipment has to operate in harsher and remote environments than before.

NIDC procures domestic goods and services in the framework of its policy to promote local knowledge-based companies.

The company undertakes most drilling operations in the country and has drilled 4,489 onshore and offshore oil and gas wells in four decades. The NIDC boss said 4,092 wells were drilled on land and 397 in deep waters.

“Drilling projects have included 2,372 development wells, 137 exploratory wells and 104 appraisal wells. A total of 1,876 wells were repaired during the four decades."

The company has played a key role in drilling exploratory and development wells in the Azadegan Oilfield in Khuzestan near the Iraqi border and in South Pars, the world's largest gas field shared by Iran and Qatar in the Persian Gulf.

NIDC has undertaken drilling work in Yaran, Yadavaran and Darkhoin oil fields in Khuzestan, and the Azar oil field in Ilam Province in recent years. It has 75 drilling rigs.