Iran is preparing a $5 billion investment package for maintaining and enhancing production of the country's oilfields, Iranian Minister of Petroleum Bijan Zangeneh said.
Addressing an energy congress here in Tehran on Tuesday, the official said the package will be prepared within the next two years, adding the scheme will involve repairing oil wells and drilling new ones while removing production bottlenecks at certain fields.
Domestic companies will finance the projects in the package, he added, saying that many of the fields are being operated by the Iranian Offshore Oil Company and the National Iranian South Oil Company (NISOC).
The package will be divided into smaller packages of $300m projects, each taking 2 years to complete, Zangeneh said.
Return on investment of the projects will take a period of at most three years and from the revenues generated by the projects, he noted.
"We will invite only Iranian companies for financing these projects but they may decide to join a foreign partner," Zangeneh further added.
"The cash for developing the projects will be obtained through various methods including financing, usance, bonds, domestic finances and loans from the National Development Fund of Iran."
Implementation of the projects will enhance Iran's oil production while generating jobs across the country, he stressed, noting that the plans will be carried out under the newly-devised model of oil contracts (IPC).
The official, who has just been reappointed as Iran's petroleum minister after President Rouhani's reelection, also said the fate of all of Iran's joint oilfields will be determined within the next four years.
"The progress of talks aimed at developing oil fields under the IPC is acceptable," said Zangeneh in an address at the opening ceremony of the 3rd Iranian Petroleum and Energy Club Congress and Exhibition.
He said developing joint oilfields is a top priority for Iran's oil industry, adding the administration and the Iranian Ministry of Petroleum intend to determine the fate of all the joint fields within the next four years.
He said the no flaring policy of the oil industry must be materialized during President Rouhani's second term in office, expressing optimism that by the end of the administration, Iran will have no mentionable gas flaring.
"There are a number of projects intended for this matter which are not enough and new plans must be defined by adopting successful methods for prevention of flaring associated gases."
Mr. Zangeneh also touched on the petrochemical sector, saying a million tons of feedstock has been earmarked for the sector this year.