Ministry of Petroleum (Iran)
| وزارت نفت | |
| Agency overview | |
|---|---|
| Formed | 12 March 1951 |
| Jurisdiction | Islamic Republic of Iran |
| Headquarters | Tehran, Iran |
| Minister responsible | |
| Child agencies | |
| Website | http://www.mop.ir/ |
| Footnotes | |
| Official MoP Youtube channel | |
The Ministry of Petroleum (MoP) (Persian: وزارت نفت Vezârat-e Naft) manages the oil industry, the producer of oil and petrochemical products. MoP is in charge of all issues pertaining to exploration, extraction, exploitation, distribution and exportation of crude oil and oil products. In addition, according to the "Imports and Exports Regulation Act", issuing import licenses for such products is also among the functions of the Ministry of Petroleum. According to BP, Iran's has 137.6 billion barrels (2.188×1010 m3) of proven oil reserves and 29.61 trillion cubic meters of proven gas reserves. Iran ranks third in the world in oil reserves and second in gas reserves.
According to the Fourth Economic, Social and Cultural Development Plan, the Government has been required to transfer at least 10% of the activities related to the exploration, extraction and production of crude oil to the private sector, while in the meantime retaining its ownership of oil resources. This is also the case in other fields of the Ministry of Petroleum's activities.
Iran plans to invest $500 billion in the oil sector until 2025. As of 2010, US$70 billion worth of oil and gas projects are under construction.Iran's annual oil and gas revenues will reach $250 billion by 2015.
The Iranian constitution prohibits the granting of petroleum rights on a concessionary basis or direct equity stake. However, the 1987 Petroleum Law permits the establishment of contracts between the ministry, state companies and "local and foreign national persons and legal entities." Buyback contracts, for instance, are arrangements in which the contractor funds all investments, receives remuneration from the National Iranian Oil Company (NIOC) in the form of an allocated production share, then transfers operation of the field to NIOC after a set number of years, at which time the contract is completed.
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Wikipedia