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Iran has means to restore oil extraction

Oil&Gas Materials 17 January 2021 12:18
Iran has means to restore oil extraction

BAKU, Azerbaijan, Jan. 17

By Elnur Baghishov – Trend:

The National Iranian South Oil Company (NISOC) can restore 95 percent of its previous extraction (before the new US sanctions against Iran) in one day, Managing Director of the NISOC, Ahmad Mohammadi said, Trend reports citing the company’s website.

Mohammadi noted that in this regard, the National Iranian Oil Company (NIOC) must declare the suspension of its commitment to reduce oil extraction.

He added that the National Iranian South Oil Company accounts for more than 80 percent of Iran's oil extraction potential. Accordingly, most of the government's plan related to export 2.3 million barrels of crude oil and gas condensate daily in next Iranian year (March 21, 2021 to March 21, 2022) will be implemented in the company's territory.

Following the implementation of the nuclear deal signed between Iran and the 5 + 1 group in 2016, Iran increased oil extraction to 3.8 million barrels daily over the 3 months. In total, Iran's oil and gas condensate extraction reached to 4.8 million barrels per day in that year. And Iran exported 3 million barrels of crude oil and gas condensate per day. However, as a result of new US sanctions against Iran in November 2018, Iran's exports of crude oil and gas condensate decreased.

It is estimated that, Iran exports daily 600,000-700,000 barrels of crude oil in the current Iranian year (began March 20, 2020).

The Organization of the Petroleum Exporting Countries (OPEC) has decided to reduce extraction to some extent, given the fall in oil prices over the past few years.

The National Iranian South Oil Company, a subordinate of National Iranian Oil Company, operates 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 extracts about 80 percent of Iran's crude oil and 16 percent of gas. The company reportedly extracts about 3 million barrels of oil per day.

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