This law establishes and mandates the Ministry of Oil to implement the general policies of the oil and gas sector in Iran. This includes policymaking, governance, planning and monitoring of all upstream and downstream operations in the oil, gas, petrochemical and refining sectors. It shall also oversee the sovereignty and public ownership of oil and gas resources on behalf of the government.
The law further stipulates matters pertaining to investment and financing of contracts and projects in the upstream sector of the oil industry. The duties and powers of the Ministry of Oil regarding investment and financing include the following:
- Issuing activity licenses and exploitation licenses for projects in oil, gas, petrochemical and refining industries to develop the production chain and further create added value.
- Establishing effective mechanisms for attracting domestic and foreign financial resources needed to implement development projects, keeping production capacity in compliance with laws and regulations.
- Attracting and directing domestic and foreign capital to develop hydrocarbon fields, prioritising shared fields through new contractual arrangements, including cooperation with domestic and foreign investors and contractors.