Iran says increasing oil output by 3 mb/d possible

Business Materials 22 May 2017 13:46 (UTC +04:00)

Baku, Azerbaijan, May 22

By Dalga Khatinoglu – Trend:

Iran says that increasing the oil output from new projects by 3 million barrels per day is possible within the next five years.

“International companies have proposed Iran to increase the oil output by 3 mb/d and this is possible based on newly designed oil and gas agreements, called Iran Petroleum Contract (IPC), Deputy Head of the National Iranian Oil Company (NIOC) for Engineering and Development Affairs Gholam-Reza Manouchehri said May 22, IRNA reported.

According to him, Iranian companies can have 60-70 percent share in the new projects.

Iran introduced 49 oil and gas fields for foreigners based on IPC in November 2015, but it hasn’t issued any tenders yet.

Some $100 billion worth of investment is needed in the country’s upstream oil and gas projects by 2022, of which 80 percent Iran hopes to attract from abroad.

About 80 percent of Iran’s active fields are in their second half-life and lose 8-12 percent of their productivity annually.

Iran hopes to develop new projects to compensate the fall of oil output and also increase the volume.

According to the International Monetary Fund’s estimations, Iran’s crude oil output would increase from 4.1 mb/d in 2017 to 5.4 mb/d by 2022.

Wood Mackenzie’s estimations also indicate that Iran’s crude oil (without gas condensate) would increase from 3.899 mb/d in 2017 to 4.29 mb/d in 2022.