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Iran’s oil output growth not to be less than 1 mbpd (UPDATE)

Oil&Gas Materials 4 December 2015 15:37
Iran’s Oil Minister Bijan Namdar Zanganeh said his country is ready to increase crude oil production by one million barrels per day (mbpd), noting that other OPEC members with an output exceeding their quota should decrease production.

Details added (first version posted on 15:14)

Baku, Azerbaijan, Dec. 4

By Dalga Khatinoglu - Trend:

Iran's Oil Minister Bijan Namdar Zanganeh said his country is ready to increase crude oil production by one million barrels per day (mbpd), noting that other OPEC members with an output exceeding their quota should decrease production.

Zanganeh said Iran isn't considering a 0.5 mbpd output increase, noting that his country is going to step up production by only one mbpd, even if other OPEC members decrease their output, the Fars news agency reported Dec. 4.

OPEC held its 168th ministerial meeting Dec. 4 in Vienna.

Iranian Oil Minister Bijan Namdar Zanganeh asked the OPEC to reduce production by at least 1.3 million barrels per day (mbpd) on Dec. 1.

Ahead of the upcoming OPEC meeting, Zanganeh sent a letter to OPEC Chief Abdallah Salem el-Badri, announcing that the cartel members should be committed to the ceiling level, which had been set at 30 mbpd, Mehdi Asali, Iranian Oil Ministry's official said.

However, Saudi Oil Minister Ali al-Naimi said on Dec. 4 that there is a responsibility to maintain 12.5 million barrels per day production capacity.

On the other hand, OPEC's second biggest oil producer, Iraq announced that it sees average Iraqi 2016 output at 4.5 mbpd. This volume indicates a growth of 300,000 barrels per day year-to-year.

"It is time for certain OPEC members to cut their output, ahead of lifting sanctions against Iran," said Zanganeh in his letter.

Iran expects the sanctions to be lifted in early next year, as it is adhering to the terms of a July nuclear deal clinched between Tehran and the world's six major powers.

Iran's crude output and export decreased by 3.7 mbpd and 2.874 mbpd as a result of the sanctions. Iran says it will return to former output level as soon as sanctions are removed.

The OPEC members' total crude oil output dropped by some 256,500 barrels per day to 31.382 mbpd in October compared to September, the organization has said in its latest monthly report.

Iran's oil output was about 3.7 mbpd in 2011, but it has decreased due to western sanctions, imposed in mid-2012.

OPEC reported Dec. 4 that world oil demand in 2015 will grow by 1.5 million barrels per day, up from one million barrels per day in 2014.

OPEC has also said that in 2016, demand for OPEC crude is expected to rise by 1.2 million barrels per day to average 30.8 million barrels per day for the year.

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