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Iran could double oil exports - NIOC

Oil&Gas Materials 23 May 2022 09:31 (UTC +04:00)
Elnur Baghishov
Elnur Baghishov
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BAKU, Azerbaijan, May 23. Iran could double crude oil exports if new US sanctions are lifted, Iranian Deputy Oil Minister and the CEO of the National Iranian Oil Company (NIOC), Mohsen Khojasteh Mehr told IRNA, Trend reports.

“It is true that Iran's crude oil exports have never been zero. However, during the previous Iranian government (2017-2021) it decreased sharply,” the deputy minister said.

Khojasteh Mehr also added that the decline in crude oil exports has resulted in a decline in production from some oil fields. On the other hand, the lack of investment to maintain production has led to a reduction in Iran's crude oil production capacity of about 1 million barrels per day.

“Whereas, with the spending of $500 million under the current Iranian government (which has been in power since August 2022), Iran's daily crude oil production capacity rose again to about 3.84 million barrels,” he noted.

In January 2016, Joint Comprehensive Plan of Action (JCPOA) was launched between Iran and the P5+1 group (US, Russia, China, UK, France, and Germany) in connection with Iran's nuclear program. The deal was in force as of the beginning of 2017.

As a result of the deal, Iran's crude oil exports amounted to 2.3 million barrels per day. Meanwhile, in May 2018, the US announced its withdrawal from the deal and imposed sanctions on Iran in November of the same year. As a result of the sanctions, Iran's crude oil exports fell to about 400,000 barrels per day.

Over the past period, the sanctions affected Iranian oil exports, more than 700 banks, companies, and individuals. The sanctions have resulted in the freezing of Iranian assets abroad.

Reportedly, Iran's crude oil exports have recently exceeded 1 million barrels per day.

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 1.2 trillion barrels. With available technology and equipment, Iran can extract 340 billion barrels. Thus, 30 percent of the country's hydrocarbon reserves are recoverable, while 70 percent remain underground.

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