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Iran Signs 12 Contracts to Capture and Sell Associated Gas

Iran Signs 12 Contracts to Capture and Sell Associated Gas
(Saturday, November 1, 2025) 12:59

TEHRAN, Nov. 01 (NIPNA) — The National Iranian South Oil Company (NISOC) signed 12 contracts on Saturday to capture and sell associated petroleum gas (APG) from several oil fields, as part of a government-backed initiative to curb gas flaring and attract private investment.


The agreements, signed under the directive of President Masoud Pezeshkian, involve domestic and international companies and aim to utilize private sector capacity and technology transfer to advance sustainable development in Iran’s oil industry, the National Iranian Oil Company (NIOC) said in a statement.

Under the contracts, about 295 million cubic feet per day (mcf/d) of flare gas from the Rag Sefid 1 and 2, Golkhari 3, Bibi Hakimeh 1 and 2, Bangestan-Kupal, Ahvaz 1, 3, and 4, Lali, Nargesi, Haft Shahidan, and Zeelay fields will be recovered.

According to NIOC estimates, the projects — representing a total investment of around $800 million over a maximum of two years — will eliminate 32 gas flares, preventing the loss of 295 mcf of gas per day.

Once operational, the projects are expected to generate about $550 million in annual revenue, produce 800,000 tons of gas condensates per year to boost petrochemical feedstock supply, and inject 200 mcf/d of light gas into the national network — helping to strengthen Iran’s energy security, particularly during the winter months.

Officials described the initiative as a model for effective collaboration between the Iranian private sector and foreign partners in advancing environmental goals and enhancing efficiency in the country’s upstream oil sector.

 


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