The Ministry of Petroleum (MOP) (Persian: وزارت نفت, romanized: Vezârat-e Naft) manages all aspects of the Iranian oil industry, including the discovery, extraction, production, distribution, and importation and exportation of crude oil and petrochemical products.

[citation needed] It is responsible for applying the principle of Iranian ownership and sovereignty over oil and gas reserves.

The Ministry was established after revolution in Iran and in the interim government of Bazargan, after departure of Hasan Nazia, the managing director of National Iranian Oil Company from the country in 1979.

In addition to meeting its major energy needs, the ministry supplies over 80% of foreign currency earnings by exporting crude oil and refined petroleum products.

[5] The Islamic Republic of Iran formed the Ministry with the aim of applying the principle of Iranian national ownership and sovereignty to oil and gas resources, and separating sovereignty functions from company in the management and development of oil and gas industry of the country.

The legal framework for activities of the National Iranian Oil Company in discussion of hydrocarbons sources and its products was determined by approving the "Law on Development of Petrochemical Industries (with subsequent amendments)" on 20 July 1965 and the "Law on Development of Gas Industry" on 25 May 1972.

In addition, the extent of Iranian or foreign companies and firms has clarified to participate in petrochemical product plans.

Finally, a detailed description of presenting and receiving proposals, signing contracts, contract termination, conservation and preventing environmental pollution, maintaining Iran's interests and pricing conditions were presented by the approval of first "Oil Act" on 8 August 1974, in addition to defining the terms and conditions of work within hydrocarbon resources of whole country.

In addition, the extent of Iranian or foreign companies and firms has clarified to participate in petrochemical product plans.

Finally, a detailed description of presenting and receiving proposals, signing contracts, contract termination, conservation and preventing environmental pollution, maintaining Iran's interests and pricing conditions were presented by the approval of first "Oil Act" on 8 August 1974, in addition to defining the terms and conditions of work within hydrocarbon resources of whole country.

However, the 1987 Petroleum Law permits the establishment of contracts between the ministry, state companies and "local and foreign national persons and legal entities."

Buyback contracts, for instance, are arrangements in which the contractor funds all investments, receives remuneration from the National Iranian Oil Company (NIOC) in the form of an allocated production share, then transfers operation of the field to NIOC after a set number of years, at which time the contract is completed.

In 1995, President of the United States Bill Clinton issued Executive Order 12957,[7] banning U.S. investment in Iran's energy sector, followed a few weeks later by Executive Order 12959[7] eliminating all trade and investment and virtually all interaction between the United States and Iran.

[8] The features of fifth development plan in oil industry include: a systemic template of a set of interconnected components that interact with each other to exchange data, information, materials and products, and they perform a targeted move.

Abundance of basic material, like natural gas, in the country provide favorable conditions for development and expansion of petrochemical plants.

Japan, China, South Africa, Brazil, Pakistan, Sri Lanka, Spain, India and the Netherlands are the main importers of Iran's crude oil.

[17] The Ministry of Petroleum, in accordance with the US Executive Order 13876, was placed under sanctions by the United States Department of State in October 2020 and has been designated as Specially Designated Global Terrorist due to its alleged links with the Islamic Revolutionary Guard Corps for supplying "oil for terror" in Syria worth millions of dollars.