Iran needs big investments to maintain its oil, gas production

Oil&Gas Materials 2 September 2021 10:57 (UTC +04:00)
Iran needs big investments to maintain its oil, gas production

BAKU, Azerbaijan, Sept. 2

By Elnur Baghishov – Trend:

Iran needs a minimum of $15 billion worth of investments to maintain its current crude oil and gas production, Iranian Oil Minister Javad Owji said, Trend reports citing Shana News Agency.

The minister noted that if Iran wants to produce 4 million barrels of crude oil and 1 billion cubic meters of gas on a daily basis, the above mentioned amount of investment is necessary.

Owji also added that about $15-$20 billion must be invested in Iran over the next four years to increase local production, as well as, develop and improve new joint fields. For example, the National Iranian South Oil Company (NISOC) needs from $700 million to $1 billion to upgrade its facilities.

“The life of oil facilities in Iran is more than 50 years, while the same worldwide is 25 years. So, due to that, within a year, production in Iran's oil fields decreases by about 250,000-300,000 barrels per year,” he said.

According to the minister, in the previous years, $4 billion a year was to be spent on oil and gas production. However, due to lack of funds, production potential of oil and gas fields has declined sharply over the past few years.

There are currently 74 oil and 22 gas fields in Iran. So, 37 oil fields are operating in the territory of the National Iranian South Oil Company (NISOC), 14 fields – Iranian Central Oil Fields Company (ICOFC), 5 fields – Arvandan Oil and Gas Company (AOGC), and 18 oil fields – Iranian Offshore Oil Company (IOOC).

In addition, 5 gas fields are operating in the territory of the NISOC, 13 fields – the ICOFC, 1 field – Pars Oil and Gas Company (POGC), and 3 gas fields – the IOOC.

Iran’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's hydrocarbon reserves are recoverable, while 71 percent remain underground.

The National Iranian South Oil Company, a subordinate of National Iranian Oil Company (NIOC), 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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