Baku, Azerbaijan, Dec.1
By Dalga Khatinoglu – Trend:
OPEC members reached a deal on November 30 to decrease oil output by 1.2 mb/d - a huge step which led to 8.5-percent growth in oil price.
According to the deal, OPEC would produce 32.5 mb/d in average during the first half of 2017, all members will decline the production by 4.5 percent, except for Iran.
Iran’s oil production decreased dramatically during 2012-2015 due to sanctions and the country says it has right to resume the output to the pre-sanctions level.
OPEC agreed to take the highest level of Iran’s oil output since 2000, which was about 3.975 mb/d (in 2005) and after declining 4.5 percent from this volume like all members, Iran would be allowed to produce 3.797 mb/d. This figure is even about 90,000 b/d more than the country’s October oil output level, according to the OPEC’s own estimations.
Beside oil export revenues growth, Iran would have advantage to attract foreign investments in the country’s oil and gas projects as well.
The global investments in upstream oil and gas sectors decreased by 44 percent during last two years due to low oil prices and Iran needs at least $100 billion investments in these sectors by 2021, of which 80 percent is projected to be attracted from foreign companies and financial entities.
According to the International Energy Agency, Iran’s oil output is likely to reach 6 mb/d by 2040.