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Oil production of Iranian NISOC increases

Oil&Gas Materials 26 April 2020 18:10 (UTC +04:00)
Oil production of Iranian NISOC increases

BAKU, Azerbaijan, April 26

By Elnur Baghishov - Trend

Crude oil production of the National Iranian South Oil Company (NISOC) increased by 10,000 barrels per day in the current month (starting from April 20), compared to the same period last year, Technical Director of NISOC Sadegh Fatollahi said, Trend reports referring to the company's website.

According to Fatollahi, this increase is in addition to the National Iranian Oil Company's program to maintain and increase production.

Fatollahi added that the increase in production was despite US sanctions against Iran and serious problems with the supply of some equipment.

The official said that wells were drilled and put into operation with maximum cost savings.

National Iranian South Oil Company (which is subordinate of National Iranian Oil Company) has 45 large and small hydrocarbon deposits in an area of 400,000 square kilometers from Iran's Bushehr province to the north of Khuzestan province. The company produces about 80 percent of Iran's crude oil and 16 percent of gas. The company reportedly produces about 3 million barrels of oil per day.

About 280 new wells will be drilled as part of the plan to maintain and increase production in 28 fields under the control of NISOC. It is planned to implement the program to maintain and increase oil production at 28 fields within two years. With the completion of this plan, the company's production will increase by 341,000 barrels per day. About $4.6 billion is required for the implementation of this plan.

Iran has 125 oil fields and 59 gas fields. The country's total hydrocarbon reserves are estimated at 836 billion barrels.

With available technology and equipment, Iran can extract 239 billion barrels. Thus, 29 percent of the country hydrocarbon reserves are recoverable, while 71 percent remain underground.

The US imposed new sanctions on Iran in November 2018. Over the past period, the sanctions affected Iranian oil exports, more than 700 banks, companies and individuals.

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