In the first phase of the “Revival of Inactive and Low-Productivity Wells” plan, 50 contracts worth $50 million will be signed with knowledge-based companies. If successful, this initiative could add 83 million barrels to Iran’s oil production over three years.
According to the National Iranian Oil Company, Iran has approximately 5,000 oil and gas wells, of which 3,000 are oil wells. Currently, 700 of these wells are either low-productivity or shut-in, meaning about 23% of Iran’s drilled wells are inactive. In contrast, most developed countries with similar production rates have an inactivity rate of around 10%. To address this, the Ministry of Oil has launched the “Revival of Inactive and Low-Productivity Wells” plan, leveraging the capabilities of knowledge-based companies.
Reviving these wells, which requires relatively low investment based on global experience, is a short-term strategy to maintain production until investment constraints are resolved.
83 Million Barrels to Be Added to Iran’s Oil Production
Mohsen Khajesteh-Mehr, CEO of the National Iranian Oil Company, highlighted the role of the Oil Industry Innovation Park in attracting knowledge-based companies. He explained that 48 such companies have joined the park, with each capable of managing up to five wells over three years. Depending on the risk level of each well (low, medium, or high), companies can earn between $3 and $12 per additional barrel produced.
He further noted that all knowledge-based companies will sign contracts with the Oil Industry Innovation Park. If the revival of these 700 wells is completed, it is projected to yield a cumulative increase of approximately 83 million barrels of crude oil over three years, marking a significant achievement for the oil industry in the past year.
Details of the Low-Productivity Well Revival Plan
The latest updates on the plan indicate that confidentiality agreements were signed on November 6, 2025, between the Oil Industry Innovation Park and 50 knowledge-based companies. The first contracts are set to be finalized in December 2025.
In the first phase, 80 inactive and low-productivity wells have been assigned to 50 knowledge-based companies, with each company selecting one well. Each contract is valued at $1 million, resulting in a total of $50 million in contracts for this phase.
Subsequent phases of the plan will be planned and implemented based on the success of the first phase.