The head of the Iranian Oil Industry Equipment Manufacturers Association said the Oil Ministry has drafted a new framework aimed at expanding collaboration with the private sector. The measure is intended to streamline processes, formalize partnerships and increase the presence of domestic manufacturers in oil industry projects.
Ehsan Saqafi said that given the third imposed war and the country’s current conditions, special solutions are needed. He added that implementing plans will require an operational system tailored to wartime and postwar conditions, noting the Oil Ministry has already begun taking steps in that direction.
Saqafi said the general outline of the new directive focuses on simplifying procedures, though details have not yet been shared with the private sector. Industry participants are waiting to review the plan and provide expert feedback.
He noted that engagement with the private sector is not new and has existed under previous administrations. However, he said perspectives are evolving and becoming more specialized, a shift that could improve and expand cooperation.
Given current conditions, Saqafi said greater emphasis should be placed on maximizing domestic capacity and private sector involvement.
Addressing structural barriers
Saqafi identified organizational and structural obstacles as key challenges in assigning projects to private companies. However, he said there have been signs of improvement over the past year, including a reduction in some of these issues.
Referring to a new public-private partnership model between the Oil Ministry and private firms, he said similar initiatives have been proposed in the past. The critical factor, he added, is proper implementation, which could improve project execution if done effectively.
Domestic capacity critical under sanctions
Saqafi said reliance on domestic capabilities has strengthened in recent years amid sanctions, with a significant share of oil industry equipment now produced by Iranian manufacturers. Increased trust and cooperation, he said, could accelerate project timelines and reduce dependence on foreign suppliers.
Responding to whether the private sector should do more to gain the ministry’s trust, Saqafi said no industry can offer absolute guarantees. However, he noted that private firms have increased the share of domestically produced equipment from about 20% to more than 80% over the years. With continued support and confidence, he said, local manufacturers can better meet the industry’s needs.
He added that the Oil Ministry and domestic manufacturers are in talks to expand private sector participation in new projects, with negotiations expected to conclude in the near future.