Baku, Azerbaijan, Aug. 8
By Emil Ilgar – Trend:
Iran’s Oil Minister Bijan Namdar Zanganeh, nominated by Hassan Rouhani for the post during his second presidency, issued a list of his programs and plans.
Iran’s President Hassan Rouhani presented the Parliament with the list of 17 nominees to be appointed his new Cabinet on Aug. 8.
According to the report, prepared by Zanganeh and published on President’s official website, “the country’s oil production increased from 2.7 million barrels per day in mid-2013 to 3.9 mb/d currently.” Nevertheless, major part of Iran’s oil production came from eight big fields, which are in decline and lose productivity significantly each year.
Zanganeh says the recovery rate of the mentioned eight fields is 37 percent and if Iran doesn’t increase this figure, the production level of those fields would decrease from the current 2.2 mb/d to 0.8 mb/d in next ten years.
He didn’t mention the productivity loses of the mentioned fields for each year, but the head of the National Iranian Oil Company Ali Kardor said in May that old fields lose 300,000 b/d annually.
Zanganeh said that Iran has increased oil production from joint oil fields significantly during his post, started in mid-2013. “Production from West Karoon Block increased from 70,000 b/d to 280,000 b/d. Joint production volumes for Azar field and the oil layer of the Southern Pars gas fieldhave been recorded at 50,000 b/d level, for first time ever.”
Iran closed some oil fields during sanctions era (2012-2015) and the exact share of re-opened fields or new fields in the current oil production volume is not clear.
Iran also increased gas production from 280 million cubic meters per day (mcm/d) from its major gas field South Pars in 2013 to 575 mcm/d currently, Zanageh said.
Iran’s total gross gas production capacity stands at 820 mcm/d, Iranian officials have said.
Zanganeh’s report doesn’t elaborate on the country’s total gas output, but according to the document, prepared by Oil Ministry and seen by Trend, Iran has produced 285 bcm of raw gas during last fiscal year. The refined gas production level also reached 2054.5 bcm.
Zanganeh also said that the Ministry heavily suffers from the financial problems. He didn’t mention any figures, but said that, National Iranian Oil Company has been recently indebted to different contractors total sum of around $50 billion.