Iran has concluded huge contracts worth $13 billion with local companies to boost its oil production. These deals – which the official Shana news agency described as "Iran's largest oil contracts in the past decade" – aim to add 350,000 barrels per day to Iranian production, bringing it to 3.6 One million barrels per day by the end of the Iranian year on March 19, according to pledges by Iranian Oil Minister Javad Oji.

This step comes in light of the enormous pressure facing Iran after the re-imposition of Western sanctions in 2018. Which led to the flight of foreign companies from the country, and Iran is betting on local expertise to implement these huge projects. It will focus on developing major fields in the west and southwest of the country, including the “Azadegan” field in Khuzestan Governorate on the border with Iraq. Contracts have also been signed to develop the oldest “Masjid Soleiman” field in Iran, in which the first well was drilled dating back to 1977. 1908.

These steps come a few days before the 73rd anniversary of the nationalization of the Iranian oil industry. It becomes a strong message that confirms Tehran’s sovereignty over its oil wealth, and its determination to break the restrictions of sanctions.

According to the US Energy Information Administration, Iran is the seventh largest producer of crude oil in the world in 2022. It also possesses the third largest proven oil reserves in the world, and through these huge investments, Tehran seeks to strengthen its position as a major player in the global oil market.

Despite great ambitions, Iran faces major challenges in implementing these projects, especially in light of the lack of technology and foreign funding.