{"id":18693,"date":"2026-09-19T08:57:18","date_gmt":"2026-09-19T08:57:18","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=18693"},"modified":"2026-09-19T08:57:18","modified_gmt":"2026-09-19T08:57:18","slug":"iran-revises-contract-model-for-reviving-low-yield-oil-wells","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/18693\/","title":{"rendered":"Iran Revises Contract Model for Reviving Low-Yield Oil Wells"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0The head of the Oil Industry Technology and Innovation Park said Iran has revised the contract model for reviving low-yield oil wells, with more financial support from the Oil Ministry, lower risk for technology companies, easier access to well data, and no cap on the number of wells that can be assigned.<\/p>\n

According to Roydad Naft, Mehdi Ahmadkhanbeigi said problems in the earlier well-revival contracts with technology firms were reviewed and that the findings have been written into a new draft resolution.<\/p>\n

Of 17 contracts signed with technology companies, about five firms withdrew or had their contracts terminated, while 12 remained in force. During implementation, the companies\u2019 problems were examined with them present.<\/p>\n

Ahmadkhanbeigi said the old financial model was a main obstacle. It was not attractive enough for technology firms, investors, or funds, so the new resolution changes the financial structure.<\/p>\n

Under the previous model, most of the risk sat with the technology company. If the first well failed, another well was assigned, but if the second well also failed, the company was not paid for the costs it had already incurred.<\/p>\n

In the new model, the National Iranian Oil Company (NIOC) will take on part of the risk. If the first well fails but the second succeeds, the costs of the first well will also be paid to the technology company under the contract mechanism.<\/p>\n

The cap on the number of wells that can be assigned has also been removed so companies can work on more wells according to their capacity.<\/p>\n

New contracts will follow the revised terms. Existing contracts that still have a reasonable chance of success will continue with a review and more support.<\/p>\n

With NIOC\u2019s backing, Ahmadkhanbeigi said, operating companies including the National Iranian South Oil Company and the Iranian Central Oil Fields Company are also being asked to cooperate so part of the risk and cost is lifted from the technology firms.<\/p>\n

That support may add costs for the Oil Ministry, he said, but the aim is to cut risk for technology companies and give the well-revival contracts a better chance of succeeding.<\/p>\n

For some contracts that have already expired, extensions are being pursued where the companies have the technical capability and a realistic prospect of success.<\/p>\n

Access to data was another barrier. In earlier contracts, technology firms faced paperwork and delays when requesting information from operating companies. In some cases data was handed over on compact discs, which slowed access.<\/p>\n

The park is designing a system to provide the needed data online and shorten that wait. The production supervision deputy is involved, and coordination with operating companies is under way so well-revival teams get information faster.<\/p>\n

The new model also allows oilfield service companies to take part, so larger firms that own technology subsidiaries can join the well-revival program.<\/p>\n

Some technology companies needed drilling rigs under the old contracts. Those rigs were a heavy cost, and without support from NIOC and the operating companies some contracts were hard to make economic.<\/p>\n

After follow-up, operating companies are expected to cooperate more so some of those operational barriers are removed.<\/p>\n

Ahmadkhanbeigi said the new resolution is meant to fix the problems identified in the earlier contracts \u2014 the financial model, risk-sharing, data access, the well-count limit, and cooperation from operating companies \u2014 and to make Iran\u2019s low-yield well revival program more effective.<\/p>\n","protected":false},"excerpt":{"rendered":"The head of the Oil Industry Technology and Innovation Park said Iran has revised the contract model for reviving low-yield oil wells, with more financial support from the Oil Ministry, lower risk for technology companies, easier access to well data, and no cap on the number of wells that can be assigned.","protected":false},"author":1,"featured_media":18694,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47,22,36,19,16,35],"tags":[],"services":[],"class_list":["post-18693","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","category-iran","category-lastnews","category-news","category-oil","category-topnews"],"_links":{"self":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts\/18693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/comments?post=18693"}],"version-history":[{"count":1,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts\/18693\/revisions"}],"predecessor-version":[{"id":18695,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/posts\/18693\/revisions\/18695"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/media\/18694"}],"wp:attachment":[{"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/media?parent=18693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/categories?post=18693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/tags?post=18693"},{"taxonomy":"services","embeddable":true,"href":"https:\/\/roydadnaft.ir\/English\/wp-json\/wp\/v2\/services?post=18693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}