Iran eyes 17% gas, 8% oil output growth by March 2018

Business Materials 22 May 2017 12:03 (UTC +04:00)

Baku, Azerbaijan, May 22

By Dalga Khatinoglu – Trend:

The board of governors of National Iranian Oil Company (NIOC) has approved an annual plan, aimed to increase the country’s gas output by 17 percent during the current fiscal year, started March 20.

According to a report, released by Shana news agency on May 21, Iran’s oil output also would increase by 8 percent, while gas condensate, NGLs and other liquids would increase by 29 percent.

The report, didn’t mention any figure, but Iran’s gross gas output reached 285 billion cubic meters per year (bcm/y) during the last fiscal year and considering a 17-percent growth, it should reach 333 bcm/yr during the current fiscal year.

Iran would complete 5 phases (17-21) of the South Pars gas field, officially inaugurated recently, by summer with 150 mcm/d nominal output capacity. Completion of phases 13, 14 and 22-24 of South Pars are also in priority.

Iran also producing about 3.8 mb/d of crude oil, thought its nominal output capacity is about 4 mb/d.

Iran would lose 300,000 b/d of its oil production capacity during the current year, because 80 percent of its active fields are in their second half-life.

However, it would add 350,000 b/d to its oil production capacity from West Karoon block, Azer field and the oil layer of South Pars during the current fiscal year. In total, Iran’s nominal oil production capacity would reach 4.1 mb/d.

Iran has obligation to produce below 3.8 mb/d of crude oil in 1H17, based on OPEC and non-OPEC oil cut deal and the deal is expected to be extended for 2H17 on May 25.

Iran also produces 560,000 b/d of gas codensate, expected to reach 720,000 by March 20, 2018 after commencing new phases of South Pars.