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Iran's oil export to reach 2 mbd after March

Oil&Gas Materials 13 February 2016 13:01 (UTC +04:00)
Iran would increase oil export more than the volume that the international organizations have assessed for Middle Eastern country's crude oil production growth

Baku, Azerbaijan, Feb.13

By Dalga Khatinoglu- Trend:

Iran would increase oil export more than the volume that the international organizations have assessed for Middle Eastern country's crude oil production growth.

Iran's Vice-President Eshagh Jahangiri said that after commencing the nuclear deal, Iran increased gas export to 1.3 million barrels per day (mbd) and more 0.2 mbd would be added by March 20, Shana reported Feb.13.

Jahangiri said that in early next fiscal year, the figure would reach 2 mbpd.

Iran's fiscal year will start on March 21.

The Middle Eastern country's oil export was 2.2 mbd in 2011, but the figure plunged to around 1-1.1 mbd during a sanction era started in 2012.

Iran and P5+1 Group including US, France, UK, Russia, China plus Germany commenced the Joint Comprehensive Plan of Action in January 2016, which eliminated the sanctions from Iran, including oil export-related ones.

Reuters reported on Jan. 29 that Iran's oil exports are on set to increase by more than fifth in January and February from last year's daily average.

The report said that the Islamic Republic's overall exports will total around 1.44 mbd in February and about 1.5 mbpd in January, according to the data on Iran's preliminary tanker loading schedules.

Iran's Oil Ministry announced on Feb.13 that the country's oil export during six months of current fiscal year (March 21, 2015 to September 22) increased by 13 percent, compared to the same period, in a fiscal year that Rouhani took office (2013).

The report didn't give further details.

On the other hand, Iran's Oil Minister Bijan Namdar Zanganeh announced last week that the country would start exporting 0.16 mbd of crude to France's Total soon.

"Italian Eni and Saras would intake 0.1 mbd and 0.06-0.07 mbd of Iranian oil," he added.

Iran says it would increase oil production by 1 mbd in 2016.

International organizations have assumed that Iran's oil production growth can increase by 0.5 mbd in 2016.

The US Energy Information Administration said in January Iran's crude oil production in expected to reach 3.3 mbd at the end of 2016 and 3.7 mbd in the end of 2017. Iran produced 2.8 mbd of crude oil in 2015.

The International Energy Agency also believes Iran could put 0.3 mbd back into circulation in the first quarter of 2016.

However, Iran has a considerable amount of oil stored offshore in tankers (between 30 and 50 million barrels), most of which is condensate, and crude oil stored at onshore facilities. "Initial post-sanction increases in Iranian exports will most likely come from storage, while meaningful production increases will occur after some of the storage is cleared," EIA says.

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