2020 1 October Fa

Urgent Plan to Boost Iran’s Ouput Capacity

Iranian Minister of Petroleum says Iran aims to raise oil production to over 4 million bpd within two years and increasing it to 5 million bpd by 2015.

Iran has launched a crash program to restore its ability to produce 4 million barrels of oil per day.

Iranian Oil Minister Rostam Ghasemi told reporters that his country is working to raise production capacity to 4 million bpd within two years – the level it was at about three to four years ago.

“At the moment we do not have sufficient capacity. We have sufficient production, but are short on capacity,” he said.

“We want to raise capacity to 4 million bpd,” he said. He would not specify existing capacity, though this is thought to be 3.5 million bpd, Iran’s OPEC quota for the past three years. The costly recovery plan over the next two years is based on speeding up development of up to 19 fields jointly shared with neighbors, Ghasemi said.

Ghasemi did not specify which shared fields were involved. Bilateral agreements with the neighbors involved were not necessary, he said.

The list of 19 fields could include the giant Azadegan and Yadavaran on the border with Iraq, offshore fields such as Esfandiar shared with Saudi Arabia, Salman, shared with the United Arab Emirates, and Hengam shared with Oman.

Work is already taking place at most of these. The country’s five-year energy development plan has set a target of 5.2 million bpd by the middle of this decade, and Ghasemi himself has publicly referred to an incremental increase of 1 million bpd under the plan.

His comments show that the ministry and the National Iranian Oil Company (NIOC) will first have to restore about 600,000 bpd by 2013, while putting in another 1 million bpd so as to meet the five-year plan target.

Whether Iran will be able to finance and install about 1.6 million bpd in restored and fresh capacity by the middle of the decade is unquestionable. Ghasemi and others have referred to euro bonds, of which they have issued several billion euros-worth with varying success in recent years. – Tehran Times

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25 / 12 / 2011