National Iranian Oil Company
The National Iranian Oil Company is a government-owned national oil and natural gas producer and distributor under the direction of the Ministry of Petroleum of Iran. NIOC was established in 1951 and restructured under The Consortium Agreement of 1954. NIOC ranks as the world's second largest oil company, after Saudi Arabia's state-owned Aramco.
The NIOC is exclusively responsible for the exploration, drilling, production, distribution and export of crude oil, as well as exploration, extraction and sales of natural gas and liquefied natural gas. NIOC exports its surplus production according to commercial considerations determined by the OPEC and at the prices prevalent in the international markets. In early 2015 NIOC's recoverable liquid hydrocarbon reserves was and recoverable gas reserves were 33.79 m3. As of 2012, the NIOC production capacity included over of crude oil and in excess of 750 million cubic meters of natural gas per day.
History
Background: 1901–1951
In May 1901, William Knox D'Arcy was granted a concession by Mozaffar ad-Din Shah Qajar to search for oil, which he discovered in May 1908. This was the first commercially significant find in the Middle East. In 1923, Burmah Oil employed future Prime Minister, Winston Churchill as a paid consultant; to lobby the British government to allow the Anglo-Persian Oil Company to have exclusive rights to Persian oil resources, which were successfully granted.In 1935, Rezā Shāh requested the international community to refer to Persia as 'Iran', which was reflected in the name change of the Anglo-Persian Oil Company to the Anglo-Iranian Oil Company. Following World War II, Iranian nationalism was on the rise, especially surrounding the Iranian natural resources being exploited by the foreign companies without adequately compensating Iranian taxpayers. AIOC and the pro western Iranian government led by Prime Minister Ali Razmara, initially resisted nationalist pressure to revise AIOC's concession terms still further in Iran's favour. In March 1951, Ali Razmara was assassinated; and Mohammed Mossadeq, a nationalist, was elected as the new prime minister by the Majlis of Iran.
NIOC: 1951–1979
In April 1951, the Majlis nationalized the Iranian oil industry by a unanimous vote, and the National Iranian Oil Company was formed, displacing the AIOC. The AIOC withdrew its management from Iran and organised an effective worldwide embargo of Iranian oil. The British government, which owned the AIOC, contested the nationalization at the International Court of Justice at The Hague, but its complaint was dismissed.By the spring of 1953, incoming US President Dwight D. Eisenhower authorised the Central Intelligence Agency, to organise a coup against the Mossadeq government, the 1953 Iranian coup d'état. In August 1953, the coup brought pro-Western general Fazlollah Zahedi to power as the new PM, along with the return to Iran of the Shah Mohammad Reza Pahlavi from his brief exile in Italy. The anti-Mossadeq plan was orchestrated by the CIA under the code-name Operation Ajax, and by the British SIS as Operation Boot.
In 1954, the AIOC became British Petroleum. The return of the shah had not meant that British Petroleum was able to monopolise Iranian oil as before. Under pressure from United States, British Petroleum reluctantly accepted membership in a consortium of companies, founded in October 1954, to bring back Iranian oil to the international market. It was incorporated in London as a holding company called Iranian Oil Participants. The founding members of IOP included British Petroleum, Gulf, Royal Dutch Shell, and Compagnie Française des Pétroles. The four Aramco partners – Standard Oil of California – Standard Oil of New Jersey – Standard Oil Co. of New York – Texaco – each held an 8% stake in the holding company.
All IOP members acknowledged that NIOC owned the oil and facilities in Iran, and IOP's role was to operate and manage them on behalf of NIOC. To facilitate that, IOP established two operating entities incorporated in the Netherlands, and both were delegated to NIOC. Similar to the Saudi-Aramco "50/50" agreement of 1950, the IOP consortium agreed to share profits on a 50–50 basis with Iran, "but not to open its books to Iranian auditors or to allow Iranians onto its board of directors". The negotiations leading to the creation of the consortium, during 1954–55, were considered a feat of skillful diplomacy.
In Iran, IOP continued to operate until the Islamic Revolution in 1979. The new regime of Ayatollah Khomeini confiscated all of the company's assets in Iran. According to the IOP's Web site: The victory of the Islamic revolution annulled the Consortium Agreement of 1954 and all regulations pertaining to it. The revolution led to the withdrawal or expulsion of virtually all foreign employees from the oil industry with the new Iranian government assuming full control of its affairs.
NIOC's Oil Reserves
According to OPEC, NIOC recoverable liquid hydrocarbon reserves at the end of 2006 was.NIOC oil reserves at the beginning of 2001 was reported to be about, however in 2002 the result of NIOC's study showed huge reserves upgrade adding about of recoverable reserves to the Iranian oil reserves.
After 2003 Iran made some significant discoveries which led to addition of another of oil to the recoverable reserves of Iran.
The vast majority of Iran's crude oil reserves are located in giant onshore fields in the south-western Khuzestan region near the Iraqi border. Overall, Iran has 40 producing fields – 27 onshore and 13 offshore. Iran's crude oil is generally medium in sulfur and in the 28°-35 °API range.
As of 2012, 98 rigs are in operation in onshore fields, 24 in offshore fields and a single rig is in operation in the Caspian Sea. Iran plans to increase the number of its drilling rigs operating in its onshore and offshore oilfields by 36 units to reach 134 units by March 2014.
Table 1- The biggest NIOC oil fields;
| Rank | Field Name | Formation | Oil in Place | Recoverable Reserves | Production Thousand barrels per day |
| 1 | Ahvaz Field | Asmari & Bangestan | 65.5 | 25.5 | 945 |
| 2 | Gachsaran Field | Asmari & Bangestan | 52.9 | 16.2 | 480 |
| 3 | Marun Field | Asmari | 46.7 | 21.9 | 520 |
| 4 | Azadegan oil field | Bangestan & Khami | 33.2 | 5.4 | 70 |
| 5 | Aghajari Field | Asmari & Bangestan | 30.2 | 17.4 | 300 |
| 6 | Rag Sefid oil field | Asmari & Bangestan | 16.5 | 4.49 | 180 |
| 7 | Abteymour oil field | Bangestan | 15.2 | 2.6 | 60 |
| 8 | Soroush Oil Field | Asmari & Bangestan | 14.2 | 9.1 | 46 |
| 9 | Karanj Oil Field | Asmari & Bangestan | 11.2 | 5.7 | 230 |
| 10 | Bibi Hakimeh oil field | Asmari & Bangestan | 7.59 | 5.6 | 120 |
Strategic petroleum reserves
began in 2006 with plans to create a global strategic petroleum reserve with the construction of 15 crude oil storage tanks with a planned capacity of. The storage capacity of oil products in the country is around 11.5 billion liters, but it will reach 16.7 billion liters by the end of the Fifth Five Year Development Plan. As of 2012, Iran is capable of storing crude oil in the Persian Gulf for a period of 10–12 days. The figure should hit 30–40 days after the construction of new storage facilities are completed.Gas reserves
NIOC holds about of proven Natural gas reserves of which 36% are as associated gas and 64% is in non-associated gas fields. It stands for world's second largest reserves after Russia.NIOC's ten biggest Non-Associated Gas Fields;
| Field's Name | Gas in Place Tcf | Recoverable Reserve Tcf |
| South Pars | 500 | 322 |
| North Pars | 60 | 47 |
| Kish Gas Field | 60 | 45 |
| Golshan Gas Field | 55 | 25–45 |
| Tabnak Gas Field | NA | 21,2 |
| Kangan Gas Field | NA | 20,1 |
| Khangiran Gas Field | NA | 16,8 |
| Nar Gas Field | NA | 13 |
| Aghar Gas Field | NA | 11,6 |
| Farsi Field | NA | 11–22 |
Recent discoveries
Since 1995, National Iranian Oil Company has made significant oil and gas discoveries, standing for some of oil in place and at least of gas in place, which are listed below.| Field's name | Oil in Place | Recoverable oil | Discovery year |
| Billion Barrel | Billion Barrel | ||
| Azadegan Oil Field | 33.2 | 5.2 | |
| Yadavaran Oil Field | 17 | 3 | |
| Ramin Oil Field | 7.398 | 1.11 | 2007 |
| South Pars Oil Layer | 6 | NA | |
| Band-E-Karkeh Oil Field | 4.5 | NA | 2007 |
| MansourAbad Oil Field | 4.45 | NA | 2007 |
| Changoleh Oil Field | 2.7 | NA | |
| Azar Oil Field | 2.07 | NA | 2007 |
| Paranj Oil Field | 1.6 | NA | 2007 |
| Balaroud Oil Field | 1.1 | 0.233 | 2007 |
| Binalood Oil Field | 0.776 | 0.099 | 2008 |
| Mansouri Oil Field | 0.760 | NA | |
| Jofeyr Oil Field | 0.750 | NA | 2008 |
| Asaluyeh Oil Field | 0.525 | NA | 2008 |
| Arvand Oil Field | 0.500 | NA | 2008 |
| Tusan Oil Field | 0.470 | NA | 2006 |
| Arash Gas Field | 0.168 | NA | |
| Total | 83.967 | NA |