Managing Director of the National Iranian Oil Company (NIOC) Ahmad Qalebani says the company plans to privatize the work of production and exploitation from the country's oil and gas fields, Press TV reports.
The country's Fifth Five-Year Development Plan (2010-2015) has authorized the NIOC to hand over the exploitation of oil and gas fields to the private sector, Iranian media quoted Qalebani as saying on Friday.
However, Qalebani underlined that the company does not intend to hand over the reserves of the fields to the private sector.
According to the official, the move is aimed at creating a competitive atmosphere, which will lead to a development in the oil sector.
He further said that application of modern methods for oil and gas exploitation-- by the private sector-- would cut production costs.
Qalebani emphasized that the NIOC will keep controlling and monitoring the production process.
