Iran's Oil Minister, Mohsen Paknejad, presented a report on significant successes in the country's oil and gas sector during the first two years of the current administration. During his tenure, approximately 11.5 million cubic meters of associated gas per day have been collected through various projects, which, combined with previous efforts, has led to an overall associated gas recovery level of 17 million mkm/day.
The administration has also implemented plans to increase oil production, expanded refining capacities at joint fields, discovered new gas reserves, and ceased diesel fuel imports. Paknejad discussed initial difficulties after his appointment in September 2024, noting alarming fuel reserve reports. President Pezeshkian personally monitored gas and diesel fuel supplies every few days, coordinating the work of the Ministry of Petroleum, the Ministry of Industry, and the Ministry of Energy to prevent shortages.
A significant step was the signing in March 2025 of a contract to increase pressure at the South Pars field—the first major deal in the industry under the new administration. This contract aims to compensate for the natural decline in reservoir pressure and address energy imbalances accumulated over 20 years.
Regarding production, the minister reported the implementation of an agreement to increase oil output by 250,000 barrels per day, with an increase of 70,000–80,000 barrels per day already achieved. More than 30 additional wells have been drilled at South Pars, contributing to the growth in gas production. Furthermore, the administration has set new records for crude gas production and increased crude oil refining capacity by more than 300,000 barrels at joint fields. Paknejad emphasized that the oil and gas refining sector remains a priority for job creation and increasing added value.
The oil sector faced serious challenges during the 40-day war. Infrastructure in several provinces was attacked: Fadr Jam Refinery and South Pars Refinery Phase 14 were damaged, four gas refineries in Assaluyeh were attacked, and Tehran oil depots, including Rey, Shahran, and Kuchak, became targets, while petrochemical plants in Mahshahr and Assaluyeh sustained damage. Despite these attacks and a sharp rise in gasoline consumption to 200 million liters per day at the start of the war, the country did not face a severe fuel shortage.
Paknejad noted the rapid response of technical teams, which restored damaged facilities within hours. Refinery restoration began within days, and a significant portion of lost capacity has already been recovered. The minister specifically highlighted that raw oil exports did not stop for even one hour under bombardment, which is an outstanding achievement given that the Harg Island was hit more than 550 times.
After the war, Iran faced successive maritime blockades. The first blockade, defined between Ras al-Khadim and Gwadar port in Pakistan, was overcome by redirecting logistics. The second blockade, which started later and continues, did not halt the industry. The administration is transferring oil outside the Persian Gulf and the Arabian Sea to ensure delivery to customers thousands of kilometers away.
The 'Two Degrees Less' consumption reduction campaign, proposed directly by the President, helped manage winter gas demand. Paknejad stressed that the key to closing the gap between production and consumption lies in optimizing consumption, not just reducing it. He highly praised the President's personal example in energy saving, noting that Pezeshkian maintains minimal lighting and avoids air conditioning even in summer, and once asked about the corridor light being on during a visit to the Ministry of Petroleum. The minister called on the public to cooperate in minimizing expensive gasoline imports, emphasizing that the Iranian people have always managed similar challenges. He also noted that the President's courage and honesty were evident throughout the crisis, demonstrated by sudden visits to the Ministry of Petroleum during military operations and constant monitoring of associated gas collection projects even in combat conditions.