The National Iranian Oil Company (NIOC; ) 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.Iran's foreign trade report Iran Trade 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 (LNG). 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 (10% of world's total) and recoverable gas reserves were 33.79 m3 (15% of world's total). 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.

In 2024, the National Iranian Oil Company was responsible for 1,208 Mt of CO2 emissions, which was 3.13% of global CO2 emissions.

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 (APOC) 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 (APOC) to the Anglo-Iranian Oil Company (AIOC). 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.Yousof Mazandi, United Press, and Edwin Muller, Government by Assassination (Reader's Digest September 1951).

NIOC: 1951–1979

In April 1951, the Majlis nationalized the Iranian oil industry by a unanimous vote, and the National Iranian Oil Company (NIOC) 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 (CIA), 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 (MI6) as Operation Boot.The C.I.A. in Iran: Britain Fights Oil Nationalism The New York Times

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 (IOP). The founding members of IOP included British Petroleum (40%), Gulf (later Chevron, 8%), Royal Dutch Shell (14%), and Compagnie Française des Pétroles (later Total, 6%). The four Aramco partners – Standard Oil of California (SoCal, later Chevron) – Standard Oil of New Jersey (later Exxon, then ExxonMobil) – Standard Oil Co. of New York (later Mobil, then ExxonMobil) – Texaco (later Chevron) – 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 NIOC: 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 Website Brief History of Iran Oil Company

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.NIOC Recent Discoveries

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.Iran heading toward self-sufficiency in building onshore drilling rigs Tehran Times

Table 1- The biggest NIOC oil fields;The 8th IIES International Conference "Energy Security and New Challenges", held in 29–30 November 2003, IRIB Conference Center, Tehran, Iran

Rank Field Name Formation Oil in Place (Billion Barrels) Recoverable Reserves (Billion Barrels) 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

+Largest Iranian Oil Fields by ProductionField's NameThousandbarrels per dayThousandcubic meters per day(onshore)Ahvaz FieldMarun FieldGachsaran FieldAghajari FieldKaranj Oil FieldRag Safid Oil FieldBibi Hakimeh Oil FieldDarquin Oil FieldPazanan Oil Field(offshore)Dorood Oil FieldSalman FieldAbuzar Oil Field Sirri Oil FieldSoroush Field

Strategic petroleum reserves

Iran 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 (2011), but it will reach 16.7 billion liters by the end of the Fifth Five Year Development Plan (2010–2015). 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.Iran Oil Ministry Annual Bulletin, 5th Edition, pages 190–193 (available in Persian) (كتاب نفت و توسعه).

NIOC's ten biggest Non-Associated Gas Fields;

+NIOC's ten biggest Non-Associated Gas Fields.Iran Oil Ministry Annual Bulletin, 5th Edition, pages 190–193 (available in Persian) (كتاب نفت و توسعه). and Iran Energy Balance Sheet (ترازنامه انرژی ایران ) (available in Persian) Published by; Iran’s Energy Ministry, Secretariat of Energy and Electricity, 2000 Field's NameGas in Place TcfRecoverable Reserve TcfSouth Pars500322North Pars6047Kish Gas FieldNIOC Website 6045Golshan Gas Field5525–45Tabnak Gas FieldNA21,2Kangan Gas FieldNA20,1Khangiran Gas FieldNA16,8Nar Gas FieldNA13Aghar Gas FieldNA11,6Farsi FieldNA11–22

Recent discoveries

Since 1995, National Iranian Oil Company (NIOC) 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.Iran Oil Ministry Annual Bulletin, 5th Edition, pages 190–193 (available in Persian) (كتاب نفت و توسعه). and Iran Energy Balance Sheet (ترازنامه انرژی ایران ) (available in Persian), pp. 132–175, Iran’s Energy Ministry, Secretariat of Energy and Electricity, 2006

+NIOC Oil Discoveries Since 1995.Iran Oil Ministry Annual Bulletin, 5th Edition, pages 190–193 (available in Persian) (كتاب نفت و توسعه). and Iran Energy Balance Sheet (ترازنامه انرژی ایران ) (available in Persian), Page 132, Published by; Iran’s Energy Ministry, Secretariat of Energy and Electricity, 2006 Field's nameOil in Place (billion barrels)Recoverable oil (billion barrels)Discovery yearAzadegan Oil Field33.25.2Yadavaran Oil Field173Ramin Oil Field7.3981.112007South Pars Oil Layer6NABand-E-Karkeh Oil Field4.5NA2007MansourAbad Oil Field4.45NA2007Changoleh Oil Field2.7NAAzar Oil FieldNIOC Official Web Site,(www.NIOC.ir) 2.07NA2007Paranj Oil Field1.6NA2007Balaroud Oil Field1.10.2332007Binalood Oil Field0.7760.0992008Mansouri Oil Field0.760NAJofeyr Oil Field0.750NA2008Asaluyeh Oil Field0.525NA2008Arvand Oil Field0.500NA2008Tusan Oil Field0.470NA2006Arash Gas Field0.168NATotal83.967NA

+NIOC Natural Gas Discoveries Since 1995.Iran Oil Ministry Annual Bulletin, 5th Edition, pages 190–193 (available in Persian) (كتاب نفت و توسعه). and Iran Energy Balance Sheet (ترازنامه انرژی ایران ) (available in Persian), Page 175, Published by; Iran’s Energy Ministry, Secretariat of Energy and Electricity, 2006 Field's nameGas in placeRecoverable gas reserveTrillion cubic feetBillion cubic metersTrillion cubic feetBillion cubic metersKish Gas FieldTabnak Gas FieldNAFarsi Gas FieldIHS International Oil Letter, Vol 24 issue 6, published 15 February 2008 NA11–23310–650Sefid Zakhur Gas FieldYadavaran FieldNALavan Gas FieldNABalal Gas FieldNAHoma Gas FieldNAMarun FieldNAGardan Gas FieldNADay Gas FieldNABinak FieldNAKaranj Gas FieldNABibi Hakime Oil FieldNAZireh Gas FieldNAMasjed Soleiman FieldArash Gas FieldNAKheyrAbad Gas FieldNATotalNA

Organizational structure

The company is completely owned by Iranian government. NIOC's General Assembly (GA) consists of: The President Vice President Director General of the Management and Planning Organization Minister of Petroleum Minister of Energy Minister of Industries and Mines Minister of Labor and Social Affairs Minister of Economy and Finance

Members of the board