Iran oil minister: Tehran not to give up oil rights in Caspian Sea

Iran Materials 3 February 2014 11:03 (UTC +04:00)

Baku, Azerbaijan, Feb. 3

By Rahim Zamanov - Trend:

Iran will never give up its oil rights in the Caspian Sea, Iranian Oil minister Bijan Namdar Zanganeh said on February 3, Iran's SHANA News Agency reported.

"No country is allowed to drill in Iranian territorial waters," he said.

"Iran's first priority is to develop its southern oilfields at the Persian Gulf," he said, adding that drilling at theCaspian Sea oilfield's is more difficult.

According to Iranian MP Zohre Tayebzadeh Nouri, Iran doesn't have a joint field at the Caspian Sea.

It's estimated that Iran produced 2.8 million barrels of oil per day (excluding gas condensates) in 2013, which is 170,000 barrels less than the preceding year.

Currently most of Iran's active oilfields are in the second half of their life span and each year they lose some of their production capacity due to natural causes.

Based on a report which was published by Iran's Majlis (Parliament) Research Center in October 2009,Iran's production capacity annually declines by an average of 10 per cent.

In the same year, Iran's oil production stood at 3.79 million barrels per day. Until the end of 2012 the country managed to compensate for the natural decline in its oil production by inaugurating new oilfields as well as injecting gas to old fields. Iran's production was reduced by only about 100,000 barrels per day for three consecutive years from 2009 to 2012.

EIA also reported in March that Iran's oil output capacity annually declines by an average of 8 to 13 per cent.

EIA's latest report published on Jan.7 shows that not only has Iran failed to compensate for its natural production decline by inaugurating new oilfields and using new production methods, but also the country's natural production decline has exceeded previous estimations.

The official reports and statistics released during last year also indicate a significant lack of progress in new projects aimed to increase the oil output level.

Edited by C.N.