Iran adds 30,000 b/d to oil output capacity

Business Materials 18 April 2017 10:32 (UTC +04:00)

Baku, Azerbaijan, Apr. 17

By Dalga Khatinoglu – Trend:

Iran has increased its oil output from South Azadegan by 30,000 barrels per day (b/d) to 80,000 b/d on April 16, Shana news agency reported.

According to the report, the level is expected to reach 110,000 b/d by June 2017.

South Azadegan has been projected to produce 320,000 b/d in the first phase and the final output capacity would reach 600,000 b/d. Iran plans to issue a tender based on newly designed contract model, called Iran Petroleum Contract, to develop the field.

In 2017, Iran has added 15,000 b/d from the Azer field and 25,000 b/d from the oil layer of South Pars to its production capacity level. Meanwhile, the Islamic Republic says its current output capacity stands at about 4 mb/d and the volume would reach 4.05 mb/d by March 2018.

Iran would lose 300,000 b/d of oil production capacity during the current fiscal year, due to natural pressure fall in active fields, but the country would add 350,000 b/d from new fields, Ali Kardor CEO of National Iranian Oil Company said Apr.14.

About 80 percent of Iran’s active oil fields are in their second half-life and lose 8-12 percent of productivity annually due to natural pressure fall in reservoirs.

According to OPEC’s deal, achieved in November 2016 and implemented in January for 6 months, the Cartel should decrease the oil output by 1.2 mb/d of in 1H17. Iran was allowed to add 90,000 b/d and reach the production level of 3.797 mb/d.

According to the latest statistics, published by OPEC, Iran produced 3.79 mb/d of crude oil in March, or about 29,000 b/d less than February.

OPEC members are preparing to meet in May to discuss the extension of the deal for 2H2017. The Cartel’s compliance of the deal was 95 percent last month.