TCCIMA reviews barriers to private sector oil gas development

TCCIMA reviews barriers to private sector oil, gas development

TEHRAN - The 24th session of the Energy and Environment Committee of the Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) focused on the challenges facing private sector involvement in the development of oil and gas fields.

As the TCCIMA portal reported, the members highlighted issues such as the lack of recognition of investor roles in oil contracts, the absence of ownership rights for produced oil, lengthy contract assignment processes, and complex bureaucratic hurdles that restrict private sector participation.

Representatives from the Planning and Budget Organization (PBO) and the Ministry of Oil attended the session, where it was decided to prepare a detailed list of challenges and reform proposals to be submitted to relevant authorities.

During the meeting, Fereydoun Asadi, Vice Chair of the committee, discussed regulatory issues impacting oil and gas businesses. He referred to Table 8, Article 42 of the Seventh National Development Plan, which outlines energy performance benchmarks, and provided additional details on these challenges.

Mehdi Masaeli, another Vice Chair, stressed the importance of the private sector adopting a clear stance when engaging with government agencies. He encouraged the committee to focus on advocating for solutions to pressing issues in the oil, gas, and environmental sectors.

Elina Bagheri, Secretary of the Tehran Exploration and Production Companies Association, presented a report on the state of the upstream oil industry. She noted significant unrealized production potential and identified key players in the sector, which include the National Iranian Oil Company and 20 qualified exploration and production firms—comprising eight private companies, nine semi-governmental companies, and three state-owned companies.

Bagheri highlighted several factors hindering the industry's growth. These include regulated gas prices and subsidies directed toward downstream industries, insufficient investment in field development, limited budgets for the National Iranian Oil Company, and unattractive contract terms for investors. She also pointed to overlapping decision-making authorities, substantial government debts to exploration and production companies, excessive and contradictory regulations, and the lack of recognition for investor rights in the upstream oil sector.

EF/MA

source: tehrantimes.com