Iran Oil and Gas Exploration and Production Market Size (2024 - 2029)

Iran Oil and Gas Exploration and Production Market Size Summary

The Iranian oil and gas exploration and production market is poised for growth, driven by new discoveries, upcoming projects, and increased investments in the upstream sector. Despite the challenges posed by geopolitical factors and national unrest, Iran is focused on enhancing its production capacity through the development of key oil fields such as Azadegan, Yadavaran, Yaran, and South Pars. These efforts are expected to create significant growth opportunities in the market. The country is actively exploring hydrocarbons across approximately 60% of its territory, including previously unpromising areas, to address the decline in production capacity from its aging oil fields. The National Iranian Oil Company (NIOC) has reported promising preliminary surveys in regions like East Azerbaijan, indicating potential new oil and gas fields.

Iran's strategy to boost its oil and natural gas production is further supported by substantial investments, despite the disruptions caused by U.S. sanctions. The government has outlined plans to invest billions in enhancing its upstream sector, with a focus on increasing natural gas production, which has been on the rise. This trend is expected to continue, driven by the growing international demand for natural gas due to its lower carbon emissions. The market is moderately consolidated, with key players including the National Iranian Oil Company, Petropars Ltd, and MAPNA Group. International collaborations, such as those with ONGC Videsh Ltd and Gazprom, highlight the ongoing efforts to develop Iran's oil and gas projects, further supporting the market's growth trajectory.