Iran’s Oil Ministry fails to carry out special plan to increase oil output
Tehran, Iran, May 10
By Milad Fashtami - Trend:
Iranian Oil Minister Bijan Namdar Zanganeh said that his special seven-month plan to increase the country's oil production capacity to 4.2 million barrels per day, has failed.
"Iran used to produce 4.2 million barrels per day in 2005. We planned to increase the country's production capacity to that figure, but the plan failed," Zanganeh said, Iran's Tasnim News Agency reported on May 10.
The oil minister, however, noted that the country's oil production and oil production capacity have increased compared to nine months ago.
He went on to note that the Oil Ministry continues its efforts to increase Iran's oil output capacity.
Reuters reported on April 29 that Iran's oil exports fell in April for a second month, according to sources who track tanker movements, moving closer to levels allowed by November's interim deal on curbing Tehran's nuclear program.
The decline may reflect seasonally lower crude oil demand and U.S. pressure on some customers take less. Signs of higher Iranian sales since late 2013 have led to concern in Washington that a softening of sanctions has given Tehran's economy a boost.
"It looks like India has imported less in April - that could be due to a combination of more pressure from the United States and also lower crude demand at this time of year by Indian buyers," a tanker-tracking source said.
Iran's crude exports have averaged 1.1 million barrels per day (bpd) in April, said one of the sources, down from almost 1.3 million bpd in March. That would bring exports back down to the average 2013 level of Iranian imports.
Under an interim deal signed in November between Iran and six world powers - known as the Joint Plan of Action (JPOA) - that came into effect on Jan. 20, Iran's exports are supposed to be held to an average 1 million bpd through July 20.
The Obama administration believes that Iran's oil sales will fall in coming months and average 1 million bpd over the entire six-month period.