29 Mar 2024
Wednesday 12 August 2015 - 13:49
Story Code : 175670

Iran to raise oil output by 500,000 bpd “after lifting of sanctions”

Tehran, Aug 12, IRNA – Iran is not to raise the level of its oil output before the removal of sanctions, an official with National Iranian Oil Company said on Wednesday.

Some Iranian media have carried some news saying that Iran will upgrade its output level by 500.000 barrels per day in seven days.
The news carried was deducted from an earlier news story that the US government has liberated Iran’s oil exports.
However, Managing Director of National Iranian Oil Company Roknoddin Javadi says Iran's output will not change as long as sanctions are not lifted.
Javadi stressed that 'Iran's output level will not change as long as sanctions are not eliminated.'
He made the remark in reaction to reports that Iran will increase its production by 500,000 barrels per day in a week.
A US government statement has lifted ban on Iran’s oil exports following the signing of JCPOA in Vienna.
The statement allows countries and oil companies to buy crude oil from Iran by the full implementation of the JCPOA. The statement, signed by the president of the United States, will annul a previous statement punishing companies and countries who had bought Iranian oil. Sanctions however left non-US companies untouched in their interactions with Iran.
Currently, Iran’s crude oil production is estimated to be 2.7 million barrels per day. With lifting of 3 major sanctions hitting Iranian oil sector, which affected cash transfer, oil tanker procurement, and insurance, Iran’s oil production will be up by about 500k barrels per day.
Together with this boost, Iran’s crude oil force majeure project to add another 1.5 million barrels will render a total per day export of 2 million barrels.
Oil Minister Bijan Namdar Zangeneh had already made it clear that Iran can increase its oil production by 500,000 barrels per day (bpd) within a week “immediately after” the removal of sanctions against the country.
He also said the country’s crude production capacity can even raise by above 1 million bpd within a month after all sanctions are lifted.
“Some of the most effective sanctions [against Iran] with regards to the oil industry were those that targeted aspects such as sales, volumes, shipment, insurance and the transfer of money,” Zangeneh said in an interview broadcast live on Iran’s state TV.
“If those issues are resolved, Iran will regain the market share that it has lost which amounts to above one million barrels per day.”
The minister added that Tehran has informed OPEC about its determination to regain its lost market share, stressing that the country will require “nobody’s authorization to retrieve its rights”.
Zangeneh said Iran has already started a marketing campaign for its projected extra crude production supplies.
“There are some who say it will take one and a half years for Iran to increase its oil production,” said Zangeneh. “I recommend they watch how this [the rapid rise in Iran’s oil output] will take place”.

By IRNA
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