Iran to flood Asian oil markets with 500K bbl/d
By Mehdi Sepahvand -- Trend:
The Iranian Oil Ministry is going to boost its output by 500 thousand barrels per day after the nuclear deal removes restrictions on the country's oil trade.
The ministry plans to materialize the increase by late September and the product will be sent to markets in southern, southeastern, and eastern countries of Asia, Deputy Oil Minister Roknoddin Javadi said, Mehr news agency reported July 19.
The plans to do so have already been made, he stated.
He said that preparations have been made for all Iranian oil fields to boost their output as part of a series of drills.
The official noted that in the couple of months following the removal of sanctions there won't be enough space for more than 500 thousand to 600 thousand extra barrels of oil from Iran.
Iran's oil production capacity before the sanctions was four million barrels a day, he pointed out.
After several months of talks, on July 14, Iran and the P5+1 (US, Russia, China, France, UK, and Germany) announced a final accord, curbing Iran 's nuclear program in exchange for the lifting of most international sanctions.
Iran's oil and gas industry has been hit hard by waves of international sanctions set in 2010 and 2012 as the crude oil exports have halved to 1.1 million b/d, production has been curtailed by one million b/d.
In April, Iranian Oil Minister Bijan Namdar Zanganeh said it would take just a few months for the country to increase its oil production to pre-sanction levels.
Zanganeh has set an output target of 5.7 million bpd of crude oil by 2018.