A story of a 30% jump in the domestic production of oil equipment under sanctions

Ehsan Saghafi Chairman of the BoardDirector Iranian Oil Industry Equipment Manufacturers Association (استصناIn an interview with Fars News Agency economic reporter, referring to the situation of domestic manufacturing in this industry, he said: the variety of equipment in the Iranian oil industry is high and about 1400 items of equipment are used. What is certain is that more than 70% of the equipment in the country has been localized by Iranian manufacturers. In some statistics, this number is close to 80%. Of course, to produce some localized items, we need raw materials that are supplied from abroad.

He said: “Currently, there is technical knowledge to build some items of equipment that have not been localized, but its economy is not economical, that is, either the demand for it is low or there is no guarantee to buy it.

Saghafi said: “In the last 4 years, the share of localization of oil equipment has increased by 30%, which was not only due to government planning, but exceptionally, this can be considered as a blessing of sanctions.” In other words, in the last 4 years, the Ministry of Oil has had no choice but to refer to domestic production.

* 50% of the raw materials required by oil equipment manufacturers are supplied through imports

President of the Association استصنا “One of the problems for oil equipment manufacturers is the lack of raw materials inside the country, which forces us to import the required raw materials from abroad,” he said. At present, in terms of product type (and not volume), about 50% of the raw materials needed by manufacturers are supplied from within the country and 50% are imported. There are many resources and mines in Iran, but no investment has been made in the processing and production of products required by manufacturers.

He said: Good progress has been made in the production of catalysts in recent years, and by 1401 more than 55% of the country’s required catalysts will be localized. Catalyst manufacturers are few in the world and it is an honor to be built inside by Iranian engineers.

* The current Ministry of Oil believes in building inside oil equipment

Saghafi said: “The current Ministry of Oil believes in domestic production, and according to the explicit order of the Minister of Oil, this issue is on the agenda, and now we have to wait and see their performance.” In the meeting that the builders had with the Minister of Oil, the approach of the Ministry of Oil was considered positive.

President of the Association استصنا He said: “In my opinion, the main reason for some negligence in using domestic production in the oil industry is the fear of decision makers.” However, in the oil industry, the numbers are high and if something happens, the damage will be great. That’s why domestic builders are strictMost Standards produce equipment.

* After the signing of Borjam, domestic builders were unloved by the government

He added: One of the bad things that happened after the signing of Borjam was that the government’s approach to domestic construction changed and the policy of importing foreign equipment was put on the agenda. Of course, Barjam also had advantages, but we should not take it to the throne, but we should examine its disadvantages to prevent such events from occurring in future agreements. If Borjam is revived, Iranian producers should not be neglected again.

“We, the domestic manufacturers of oil equipment, have complied with all the strict standards and there is no reason for us to be unkind,” Saghafi said. Rest assured that even in times of crisis, the only ones left in the country are the same producers, or in the words of the Supreme Leader, the officers of the economic war, otherwise we would have seen that with the slightest threat. Trump How foreign companies fled Iran.

* Interacting with Chinese and Russian companies in the form of partnership provided technology transfer

President of the Association استصنا He said: “I consider the technological interaction with Russian, Chinese and other countries, such as American and European companies, to be completely in the country’s interest, but we should not allow what happened in Borjam to be repeated.” That is, it should rely on domestic producers.

He said: “Our suggestion is that Iran interact with other countries in such a way that if foreign companies are present, they will work with a domestic company in partnership and will be allowed to enter the Iranian market provided the technology is transferred.”

In the end, Saghafi said: the government should give the organizations a role-playing space. Of course, I agree that we should not look at the matter from scratch, but should be weighed in detail to make a real win-win game for both sides. For example, when it is a joint venture, both the foreign company that has entered the Iranian market and the Iranian producer benefit.

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