The Qajar court was very upset at failed attempts to find oil and head of Iranian customs, Antoine Ketabchi, who was Georgian or Armenian by origin, was assigned to visit Europe and find a new investor.

William Knox D’Arcy was chosen by him. Born in England in 1849, he later immigrated to Australia and before investing in Iran’s oil, took the biggest risk of his life by purchasing an abandoned gold mine in Australia. It later transpired that the mine was full of gold. He became quite wealthy and was ready to use his wealth in another field. Therefore, he accepted to invest in Iranian oil exploration.

D’Arcy founded a company in two years and employed a graduate of the Indian Royal Engineering College called George Reynolds, who had already worked in Sumatra Island.

Chah Sorkh (Chiasorkh in local language) was the first location he chose to drill. It was a mountainous area in western Iran, which later became border between Iran and Iraq. However, early failure of oil exploration in Chah Sorkh brought past frustration to the fore.

Afterwards, Reynolds’ team moved to Mametin region near Ramhormoz city in Khuzestan province, but they could accomplish nothing after spending about seven years and 300,000 pounds. D’Arcy and his partners gave up hope and prepared to sell the concession, though Reynolds was determined to continue.

While in southwest Iran, Reynolds had heard about a place where a mosque had been built for Solomon and where natural tar pools existed. He visited the place and though group members were not willing, he started drilling at a green valley near natural oil fountains. Drilling went on for days and finally proved Reynolds to be right.

As Anglo-Iranian Oil Company (AIOC) was established in 1909, D’Arcy lost control over oil production in Iran and the British government took over. D’Arcy sold his stocks to the government in return for 900,000 pounds and withdrew from oil exploration in Iran. Later activities were carried out by AIOC.

Plans made to get oil from Masjed Soleiman to southern coasts of Iran for refining and export, led to construction of a huge network of pipelines which, before long, engulfed the whole oil-rich areas. Reynolds and his colleagues needed somebody to pull off the arduous task. They called on Charlie Richi, a genius of oil pipelines, who was working in Burma (now Myanmar) to implement the project.

Overcoming these difficulties was the feat of oil industry. Finally, Richi finished early pipeline tests in 1911 and announced that the pipeline running from Masjed Soleiman to Abadan was capable of transferring 400,000 tons of crude oil per day.

Designing the refinery started in 1909. A square mile of Ebadan was hired from Sheikh Khaz’al, the unrivaled ruler of the region, for 650 pounds per year and construction of the refinery began. R. R. Davidson was the engineer who built the refinery using 53 European engineers and technicians and 2,000 Iranian and Indian workers. Needed equipment and construction materials such as bricks and cement were imported from Europe and construction of the refinery was finished over three years. Development in Abadan was very rapid and though the first distillation unit was made operational in August 1912 with a daily capacity of 2,000 barrels. It was known as the world’s biggest refinery in 1977 with a daily capacity of 600,000 barrels.

In 1914, just two years after construction of Abadan refinery, the World War I began. Documents published later showed that a major goal of the war was to gain control over oil and gas resources of the world.

Development of oil industry continued in post-war Iran. Oil extraction increased to 31.75 million tons in 1950 as a result of new production in Gachsaran, Aghajari, Omidiyeh, Lali, Haftgel, Ahvaz and other oil-rich regions.

On the whole, during two world wars, Iranian oil was a factor helping the Allies to win victory and oil industry development went on. On the other hand, a wave of nationalism swept through the world after the war. Presence of a new power in the form of the United States had its impact on traditional political and economic relations. Conclusion of new contracts between oil companies from the United States and other oil-rich countries made Iranians think about nationalization of their oil industry.

Led by Dr. Mohammad Mosaddeq, Majlis deputies made great efforts to nationalize the oil industry and through support accorded to them by religious figures, the Iranian oil industry was proclaimed national in the concluding days of the Iranian year 1329 (1950-51). Mosaddeq then became prime minister and though faced many difficulties, he banked on the support of people and religious figures. However, later differences in opinions helped colonialist powers to overcome the oil nationalization movement and after the military coup d’état on August 19, 1953, Iran became a prerogative ground for foreign oil consortia.

Iran established a consortium with American, British, Dutch, and French companies in 1954, which included 17 companies and aimed to restart oil production in Iran.

Over a whole decade, various petrochemical companies were established in different parts of Iran. As oil turns 100, petrochemical industry is its 45-year-old child whose network currently spans throughout the country. Major petrochemical entities are known as Arak, Isfahan, Amir Kabir, Imam Khomeini, Tabriz, Kharg, Khorasan, Razi, Shiraz, Abadan, Carbon Iran, Urmia, and Farabi petrochemical companies. Also, many plans are underway to develop the industry and launch, Borzouyeh, Tondgouyan, Jam, Khuzestan, Fanavaran, Karoun, Kermanshah, Maroun, Mobin, Hegmataneh, Pars, Ghadir and other petrochemical plants. Moreover, special petrochemical zones have been launched in Imam Khomeini port and Assaluyeh where huge plans have been and are still being launched. Bandar Imam Special Economic Petrochemical Zone includes Amir Kabir, Bou Ali Sina, Khuzestan, Fajr, Karoun, Shahid Tondgouyan, Fanavaran, Maroun and Laleh petrochemical companies. Navid Zar Shimi, Rejal Petrochemical Company and Shahid Rasouli Petrochemical Company should be added to the above companies. At the same time, the private sector has become active in other parts of the country like Mahabad, Gachsaran, Andimeshk, Khorramabad, Kermanshah, Sanandaj, and Miyandoab in order to further develop domestic petrochemical industry.

Efforts made by Iranian workers in petrochemical industries over the past 50 years have enabled the country to be ready to export petrochemicals to neighboring countries. Iran is currently a major pole in production of petrochemical products by producing more than 25 million tons of petrochemicals per year.

The National Iranian Gas Company compiled a plan to exploit that field in 1969 and the gas field later turned into the main fuel source for Neka power plant and for Khorasan Petrochemical Complex (which is located near Bojnourd). New gas resources have been discovered in Qeshm Island in late 1970s and the National Iranian Gas Company studied a plan to transfer gas from that place to southeastern Iranian cities.

In May 1972, Iranian houses of parliament ratified Gas Industry Development Act according to which National Iranian Gas Company was authorized to enter into negotiations with different domestic and foreign companies over gas production operations. A company called Kalingas then embarked on gas exploration in Nar and Kangan region of Bushehr province to launch studies related to production of natural gas in the region. Afterwards, gas exploration and exports took on more speed. Due to the outbreak of the Islamic Revolution (February 1979) and the subsequent war with Iraq (1980-88), the overall trend of gas exploration slowed down, but as the war ended many development plans were launched, especially in Assaluyeh region and Iranian gas has acquired its deserved status among energy resources of the world.

Today, Iranian gas industry encompasses many refineries and companies which are subsidiaries of the National Iranian Gas Company including, provincial gas companies, Iran Gas Engineering and Development Company, Bidboland Gas Refining Company, Fajr Jam Company, Sarkhoun and Qeshm companies, Ilam Gas Company, Iran Gas Transfer Company and other companies. On the other hand, Assaluyeh in one of the southernmost parts of Iran is located near South Pars gas field where the biggest gas installations in Iran have been erected. South Pars gas field is unique in the world and one of the biggest independent gas resources. The field straddles the borderline between Iran and Qatar in Persian Gulf and is located 150 km off Assaluyeh. According to the latest studies, it contains 14 trillion cubic meters of natural gas and 18 billion barrels of gas condensate, thus, accounting for 9 percent of total gas reserves. Gas production from the field promises a hopeful future prospect for the Iranian gas industry. Although gas industry is much younger than oil industry, its revenues and the credit it has brought to Iran has been no less than oil.

After implementation of many development projects in the past decade, South Pars Special Economic Energy Zone has turned into an amazing phenomenon in the Iranian oil industry which is giving birth to a new civilization in southern parts of Iran.

Grandeur of development plans that are going on in various phases of South Pars gas field is rare in the world. Total investment made in the region; acceptable speed of implementing the projects, technology transfer, design, and engineering; and providing needed grounds for manufacturing equipment in the country, have turned the region into a big university which in addition to job creation, are among major outcomes of the latest measures taken in the Iranian gas sector.

Now, the oil industry is turning 100 years; a whole century of industry and civilization while there are still oil reserves remaining in Masjed Soleiman, which was the birthplace of the Iranian oil industry.