TEHRAN- Iran's Oil Minister Mohsen Paknejad has reported significant progress in the country's oil and gas sector during the first two years of the 14th government.

Since taking office, approximately 11.5 million cubic meters per day of flare gas has been collected through various projects, bringing total associated gas recovery to 17 million mcm/d when combined with pre-existing efforts.

The administration has also completed oil production increase plans, expanded processing capacity in shared fields, discovered new gas reserves, and halted diesel imports.

Paknejad described the early challenges upon his appointment in September 2024, noting that initial fuel reserve reports were concerning. President Pezeshkian personally followed up on gas and diesel supplies every few days, coordinating between the Oil Ministry, the Ministry of Industry, and the Ministry of Energy to prevent shortages. A landmark South Pars pressure boost contract—the oil industry's first major deal under the new administration—was signed in March 2025 to counter the field's natural pressure decline and address cumulative energy imbalances built over 20 years.

In the area of production, the Minister reported that a contract for increasing oil output by 250,000 barrels per day has been implemented, with approximately 70,000–80,000 bpd already achieved. Over 30 infill wells have been drilled in South Pars, contributing to increased gas production. The administration also set new records in raw gas production and increased crude oil processing capacity by over 300,000 barrels in shared fields. Paknejad emphasized that downstream oil and gas industries remain a key priority for value addition and job creation.

The oil sector faced severe challenges during the 40-day war. Infrastructure across multiple provinces came under attack: the Fajr Jam Refinery and South Pars Phase 14 Refinery were hit, four gas refineries in Assaluyeh were struck, Tehran's oil depots—including Rey, Shahran, and Quchak—were targeted, and petrochemical utility units in Mahshahr and Assaluyeh sustained damage. Despite these assaults and a surge in gasoline consumption reaching 200 million liters per day in the war's early days, the country did not face serious fuel shortages.

Paknejad highlighted the rapid response of technical teams, who brought damaged facilities back online within hours. Reconstruction of refineries began within days, and a significant portion of lost capacity has already been restored. The Minister noted that even under bombardment, crude oil exports never stopped for even one hour—a remarkable achievement given that Kharg Island was hit over 550 times.

Following the war, Iran faced successive naval blockades. The first blockade, defined between Ras al-Hadd and Pakistan's Gwadar port, was overcome through logistics rerouting. The second blockade, which began later and continues, has not halted the industry. The administration has been transferring oil outside the Persian Gulf and Sea of Oman to enable delivery to customers thousands of kilometers away.

The "Two Degrees Less" consumption campaign, proposed directly by the President, helped manage winter gas demand. Paknejad stressed that consumption optimization—not merely reduction—is key to closing the production-consumption gap. He praised the President's personal example in energy savings, noting that Pezeshkian keeps minimal lighting and avoids cooling devices even in summer, and once questioned why a corridor light was on during a visit to the Oil Ministry. The Minister called on the public to cooperate in minimizing costly gasoline imports, emphasizing that Iran's people have always risen to such challenges. He also noted that the President's courage and honesty were evident throughout the crisis, with surprise visits to the Oil Ministry during war days and persistent follow-ups on flare gas collection projects even amid hostilities.

MA