Iran not to reduce oil production

Business Materials 13 May 2008 16:06 (UTC +04:00)

Iran is not to reduce the production of crude oil but will decide over its export based on the market demand and supply, said the oil minister Gholam Hussein Nozari.

Usually the spring is the time for mending refineries and there may be a fall in demand for crude oil, he said, reported ISNA.

But he denied any reduction in the production or export of crude oil saying his ministry is reviewing the export volume that may face a decrease or increase due to the demands.

Iran currently produces approximately 4.170 million bpd and exports 2.4 to 2.5 million of its production.

There were rumors that Iran intends to cut its oil production to 1 million bpd.

Also over Royal Dutch Shell and Spanish Repsol Nozari noted Iran is not to remove them from South Pars phase 13.

"Our suggestion was that either they cooperate on phase 13 or another one until the final decision because we would not have the bitter experience of waiting for foreign companies any more."

Shell and Repsol are probable to have holdings in phases 20 and 21 of South Pars oilfield. Iran also has parallel negotiations on the two phases with other companies.