Iran to invest $150 billion in upstream oil and gas sector

Oil&Gas Materials 31 May 2011 11:26 (UTC +04:00)

Azerbaijan , Baku, May 31 /Trend/

Iran will invest $150 billion in upstream oil and gas sector during the Fifth National Development Plan (2010-2015). IRNA reported quoting Deputy Oil Minister for Planning & Supervision over Hydrocarbon Resources Mohsen Khojasteh-Mehr as saying. It will increase oil & gas revenues up to $179 billion by March 2015, he added.

Roughly $100 billion of the total investments ($150 billion) will fall on foreign investments and domestic bank loans, while Iran's Oil Ministry will provide the remaining $50 billion.

"The investment will be assigned for maintaining production, oil and gas exploration, development of oil & gas fields alongside the midstream sector," he said.

Investment is expected to increase Iran's crude oil production to 4.7 million barrels per day and natural gas production to 1.47 billion cubic meters while daily production of gaseous condensates will rise to 1.2 million barrels.

Iran has OPEC's second-highest oil output, and ranks second in the world in terms of natural gas reserves after Russia.