Azernews.Az

Iran's Oil Ministry has reportedly banned working with one of the country's biggest petroleum contractors in a warning issued to more than 50 subsidiaries and some semi-private companies.

The banned company is Sepehr Energy Corporation, a subsidary of Iran's Saderat Bank, a source familiar with the matter in Iran told Azerbaijan's Trend news agency on Sunday.

Approved by Iran's Oil Minister, Rostam Ghasemi, the letter prohibits subsidiaries of the National Iranian Oil Company (NIOC), National Iranian Gas Company, National Petrochemical Company and the National Iranian Oil Refining & Distribution Company to conduct any transactions with the contracting and investment company, Mehr news agency reports.

The heads of Iran's oil companies are prohibited to sign any contracts with the company's managing director, members of its board of directors, subsidiaries and retirement fund even in the country's provinces.

Sepehr Energy Corporation has signed a number of major contracts valued at around $10 billion since President Mahmoud Ahmadinejad took office again in 2009. It is also a subsidiary of one of Iran's biggest banks.

A number of senior managers, deputies of the oil minister and managing directors of NIOC subsidiaries have been reportedly questioned by the General Inspection Office and other regulatory agencies.

Over the last three years, the now-banned company signed contracts worth approximately $4 billion for two big gas projects and a $6 billion contract to develop a gas field.