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Iran says increasing oil output by 3 mb/d possible

23 May 2017 [11:26] - TODAY.AZ

By Azernews


By Kamila Aliyeva

The Islamic Republic of Iran can increase the oil output from new projects by 3 million barrels per day within the next five years.

"International companies have proposed Iran to increase the oil output by 3 mb/d and this is possible based on newly designed oil and gas agreements, called Iran Petroleum Contract (IPC), Deputy Head of the National Iranian Oil Company (NIOC) for Engineering and Development Affairs Gholam-Reza Manouchehri said.

He said that Iranian companies can have 60-70 percent share in the new projects, IRNA reported.

Iran introduced 49 oil and gas fields for foreigners based on IPC in November 2015, but it hasn’t issued any tenders yet. In January, Iran said 29 companies from more than a dozen countries were allowed to bid for oil and gas projects under the IPC, which Tehran hopes will boost production after years of sanctions.

Some $100 billion worth of investment is needed in the country’s upstream oil and gas projects by 2022, of which 80 percent Iran hopes to attract from abroad. About 80 percent of Iran’s active fields are in their second half-life and lose 8-12 percent of their productivity annually.

Iran hopes to develop new projects to compensate the fall of oil output and also increase the volume.

The IPC model ends a buy-back system dating back more than 20 years under which Iran did not allow foreign firms to book reserves or take equity stakes in Iranian companies. The IPC has more flexible terms that take into account oil price fluctuations and investment risks.

Oil majors have said they would only go back to Iran if it makes major changes to the buy-back contracts, which companies such as France's Total or Italy's Eni have said made them no money or even incurred losses.

The International Monetary Fund’s estimates that Iran’s crude oil output would increase from 4.1 mb/d in 2017 to 5.4 mb/d by 2022. Wood Mackenzie’s estimations also indicate that Iran’s crude oil (without gas condensate) would increase from 3.899 mb/d in 2017 to 4.29 mb/d in 2022.


URL: http://www.today.az/news/regions/161571.html

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