50 NIDC Contracts for Local Manufacturers

EghtesadOnline: The National Iranian Drilling Company has commissioned domestic manufacturers to implement 50 contracts on technical services, welding, sandblasting, coloring, overhaul and procuring spare parts, an official at the state-owned company said.

News ID: ۷۸۳۷۵۲

19 August 2018

“In addition to the agreements underway, NIDC is handing over projects to set up substructures and metal segments of drilling machinery to local factories,” Mehdi Arshian was also quoted as saying by Shana, the Oil Ministry’s official news agency.

Arshian noted that the company is also studying whether to outsource six projects by tendering overhaul operations, provision of spare parts and construction of standpipe manifold and mobile storage tanks.

The official stressed that NIDC has provided eight purchase lists on electromotors, cable, lighting and connections, which are yet to be confirmed by the company’s overhaul committee, according to Financial Tribune.

"Following the supply of parts, NIDC’s experts will start repairing some of the drilling equipment. The construction of a structure is underway, which will shorten the process of rig renovation,” he said.

According to Arshian, NIDC’s goal is to empower domestic industries and boost the quality of parts and equipment manufactured in the country.

He underscored that NIDC plans to utilize domestic potentials in providing parts, which not only improve the quality of goods, but also helps the industry become more self-sufficient.

Oil Minister Bijan Namdar Zanganeh told ISNA that Iran is in dire need of investment to boost domestic production.

“The most important measure we should take is to facilitate the flow of investment in the oil sector,” he said.

Zanganeh noted that the Iranian government uses a large part of oil revenues to pay the monthly cash subsidies, hence it has to resort to foreign or domestic private investors to finance mega projects, especially in the petroleum industry.

"An effective strategy to help Iranian contractors improve their products' quality is to invite them to bid for oilfield development agreements," he said.

Noting that the oil industry needs $200 billion in investment for its development projects, the minister said that in order to increase domestic participation in oil and gas projects, foreign contractors are obliged to select an Iranian partner.