Based on 2016 estimates, Iran is home to 157.8 billion barrels of proved crude oil reserves and 34 trillion cubic meters of proved natural gas reserves, ranking as the fourth-largest oil reserves holder and the largest gas reserves holder in the world. The vast amount of hydrocarbon reserves, along with its geopolitical and geo-strategic location in Southwest Asia, particularly in the Persian Gulf and Oman Sea, has made Iran a very important and influencing country in the world’s oil and gas industry.
The entitlement of Iran’s oil and gas reserves has been transferred by the government of Iran to the National Iranian Oil Company (NIOC) which, since 1951, has been directing and making the necessary policies for exploration, drilling, production, research and development, refining, distribution and export of oil, gas, and related derivatives.
In 2002, NIOC, aiming at establishing an active presence in the world’s gas trade, incorporated National Iranian Gas Export Company (NIGEC) as one of its subsidiaries and gave it full mandate to trade and export all Iran’s natural gas and related derivatives produced from both onshore and offshore gas fields.
In 2016, NIOC stated its top priority development projects to achieve the targeted goal of increasing oil and gas production. Based on the plans, production from natural gas fields will increase to more than 1 BCM per day by the next 3 years.
