Iran ready to raise oil output to pre-sanction level

January 17, 2021 - 14:37

TEHRAN - Managing director of National Iranian South Oil Company (NISOC) said on Sunday that Iran is ready to rapidly increase its oil production back to the pre-sanction levels, IRNA reported.

“Iran is ready to halt the deliberate reduction in oil production and increase its output to 95 percent of the pre-sanction level in just one day,” Ahmad Mohammadi said.

The official noted that more than 80 percent of the country's oil production capacity comes from the southern oil-rich regions, adding: “Given the government's goal of exporting 2.3 million barrels of oil and gas condensate per day during the [Iranian calendar] year 1400 (begins on March 21), a big share of the mentioned figure will be produced in the southern oil-rich regions.”

Mentioning the deals signed between the National Iranian Oil Company (NIOC) and domestic contractors for developing the country’s oil fields, Mohammadi said: “In addition to the projects for increasing oil production, which were awarded last week, we have other plans to maintain the production levels as well.”

“We have projects in the form of annual financial and operational programs that are pursued and include above-ground and underground sections such as well operations, facilities and pipelines,” he explained.

Iran's oil exports have declined significantly in the current Iranian calendar year (ends on March 20) due to U.S. sanctions, but has never fully stopped. Reuters confirmed in September 2020 that Iran's oil exports had risen sharply in the mentioned month, to an estimated 1.5 million barrels per day.

Last week, NIOC signed eight deals worth €1.2 billion with domestic companies for developing the country’s oil fields.

The mentioned contracts were inked by NISOC and the Iranian Offshore Oil Company (IOOC), as employers, and eight domestic companies for the maintenance of the production level and increasing recovery factor of several oil fields.

EF/MA

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