Budget overestimates Iran's oil production

Iran Materials 17 April 2012 12:24 (UTC +04:00)

Azerbaijan, Baku, April 17/Trend M. Moezzi

Iran's budget for this year has set oil production at more than four million barrels a day, Fars news agency reports.

Official figures put Iran's oil production at 3.95 million barrels a day and adding on to that figure in the budget means it was approved with a deficit already in place.

Crude oil and gas condensates' exports are set at 2.74 million barrels, with gas condensates accounting for almost 340,000 barrels of that total.

In reality, Iran's oil output will be less than the four million barrels the government cites in its budget said Seyed Emad Hosseini, a member of Iran's Majlis (parliament). After many discussions, the Majlis' Budget Integration Committee accepted the figure and if there's a budget deficit in the future an amendment will be passed to address it, said Mr. Hosseini.

Iran's biggest problem is the lack of resources to expand its oil industry, said the MP. That's why the country's banks are required to invest up to $10 billion in the oil industry and 18 per cent of the National Development Fund (NDF) has been set aside for the upstream segment of the industry.