29 Mar 2024
Monday 17 October 2016 - 22:49
Story Code : 235454

Irans oil output near pre-sanction levels



Iran says its production of crude oil has already reached near levels that existed before a series of US-led economic sanctions drastically reduced it between 2012 and 2015.

Irans Oil Minister Bijan Zanganeh said that Iran is currently producing about four million barrels of oil per day.

Based on secondary sources, Irans production of oil is currently four million barrels per day, Zanganeh told reporters on the sidelines of a domestic oil and energy conference in Tehran. We are very close to that level.

The announcement came as Iran on Monday officially invited global energy giants to bid for its new round of oil exploration and development projects.

The new projects will be awarded through the new format of Irans oil sector contracts.

Under the new format, the National Iranian Oil Company (NIOC) will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.

The new format also envisages different stages of exploration, development and production that will be offered to contractors as an integrated package, with the emphasis laid on enhanced and improved recovery.

Based on the old format of Irans oil contracts known as the buybacks - the host government agreed to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.

Zanganeh emphasized that he does not expect any problem occur as a result of implementing the new format of Iranian oil sector contracts.

There is no banking problem that could stand in the way of Irans new format of contracts, he said.

Asked whether Iran will accept to decrease its oil production once it reaches the pre-sanctions levels as a per a plan on agenda of the Organization of the Petroleum Exporting Countries (OPEC), the Iranian oil minister said the Organization will in its November meeting discuss production ceilings and that no reduction in output is expected to be discussed.

We need to discuss about issues that can be implemented, Zanganeh emphasized. Talking about theoretical issues will lead us to nowhere.

OPEC member states agreed in a meeting in Algiers last month to cut their production the first such decision in eight years. Nevertheless, they excluded Iran, Libya and Nigeria who were allowed to continue producing at "the maximum level that makes sense".

Iran had already made it clear that it is determined to restore its oil production to pre-sanctions levels, rejecting calls to cut its output as part of a plan proposed by Saudi Arabia to stabilize prices.

By Press TV

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