History and Management Structure of Iran Offshore Engineering and Construction Company (IOEC)
The Iranian Offshore Engineering and Construction Company (IOEC) is one of the leading Iranian offshore engineering and construction companies with a history of alleged engagement in corruption.
In 1992, IOEC emerged as the nation’s first public contractor specializing in offshore projects. Tasked with a crucial role, the company was responsible for the construction and installation of offshore facilities vital to Iran’s oil and gas industry. Its diverse responsibilities have encompassed project management, design, procurement, construction, installation, and the commissioning of oil drilling projects. IOEC, also known as the Marine Installations Company, is partially owned by the Oil Industry Pension Fund (51%), the Iranian Security Forces Cooperative Foundation (46%), and the company’s employees (3%).
The current CEO is Hosein Shiva, a former executive at the National Iranian Tanker Company and an alumnus of the IRGC’s Imam Hosein University. Masoud Soltanpur, a key founder of the company, had affiliations with the hardline political group Ansar-e Hezbollah. Over time, IOEC saw leadership changes, with management figures reflecting diverse political inclinations with each new administration. The majority of corrupt activities that have so far come to light, notably the missing oil platform scandal, transpired during the tenure of Ali Taheri-Motlaq, a former CEO of Iran’s Ports and Maritime Organization who was appointed CEO of IOEC during the hardline administration of Mahmud Ahmadinejad (2005–13).
The Missing Fortuna
The story of the missing Fortuna oil rig unfolded during the first round of sanctions in 2012, close to the end of Ahmadinejad’s tenure. Due to sanctions-related challenges, the purchase of an oil rig for Iranian companies became problematic.
The total transaction amount for the Fortuna oil rig was approximately $87 million. This sum, paid in three installments, went directly to Mostafavi-Tabataba’i’s front company Dean, as follows:
- Approximately 63 million Emirati dirhams (AED) equivalent to $17.4 million on April 25, 2012
- Approximately €30 million (equivalent to $40 million) on October 5, 2012
- Approximately €22 million (equivalent to $29 million) on November 24, 2012
In comments on the pricing of the missing oil rig, Mohammadreza Iravani, the chairman of the board of Dana Energy Company, presumably a rival to Sepanta/Dean, said the following: “They had proposed the Fortuna rig to us for purchase at a price between $60 and $65 million. We could have bought a rig that IOEC needed at around the same price. Now, the fact that they wanted to buy the $66 million rig for $88 million is strange.”
The Fortuna oil rig never made it to Iran.
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