Iran probable to join oil export via BTC

Oil&Gas Materials 8 June 2006 11:41 (UTC +04:00)

Iran can become a potential oil export in the Caspian via the Baku-Tbilisi-Ceyhan main export oil pipeline (BTC). Mahmud Khagani, the General Director on Caspian Oil and Gas of the Iranian Petroleum Ministry, told on 7 June a conference held within the framework of the 13th international Caspian Oil and Gas exhibition.

He noted that opportunities for transportation of part of Iranian oil via the BTC will be considered, if operations turn out successful. At present Iran carries out exploration in the south part of the Caspian Sea, which first of all depends on economic efficiency of these operations.

At present oil production in Iran comprises 4 million barrels of oil a day, whereas gas production makes up 70-80 million cu m a day. By 2030 it is planned to increase oil production to 7 million barrels and gas production - 155 million cu m a day. The country needs $80bn for increase of oil production and $85bn to raise gas production. Iran ranks second in the world for oil reserves following Saudi Arabia and second - for gas reserves following Russia. It also possesses big potential on increase of hydrocarbon resources.

Khagani said that Saudi Arabia now is producing oil within its capacities, while Iran has potential, but it needs investments and technologies to utilize it.