Iran to boost crude output after removal of sanctions

TEHRAN Sept. 28 (Shana) – Petroleum Minister Bijan Zangeneh said Iran is hopeful to increase its crude oil production for 500,000 barrels a day, following implementation of the nuclear Joint Comprehensive Plan of Action (JCPOA) and removal of sanctions.

Speaking at the signing ceremony of the contract on Sistan-va-Balucehstan gas pipeline on Monday, he said in the second phase, another 500,000 barrels will be added to the output.
To a question on export of gas to neighboring Pakistan via IP pipeline, he said Iran is ready to provide the necessary infrastructure within a year.

Zangeneh said Iran is also prepared to have a serious presence in Afghanistan’s energy market. “We can export fuel to Afghanistan in bulk through Sistan-va-Baluchestan province.
Construction of the pipeline to pump gas to the eastern Sistan-va-Balucehtan province will economize 660 million dollars annually through substitution of liquid fuels with gas, said Hassan Montazer Torabi, managing director of the Iranian Gas Engineering and Development Company (NIGSENG).

The cost of 950-kilometer gasline project is estimated at 1.8 billion dollars which will be carried out in two years by a private sector contractor based on BOT (Build-Operate-Transfer) financing.
The project includes pumping gas to residential units in Zahedan, Chabahar, Khash, and Zabol cities as well as five power plants in the province.

Iran has said it will win back its quota in the global oil markets by doubling the current output to 2 million barrels per day within six months after sanctions are lifted.
Tehran is pushing to regain its quota of 14.2 percent within OPEC and later to increase its share in the global market.

Iran was OPEC’s second-biggest producer before US-led sanctions banned its customers from purchasing, transporting, financing and insuring of its crude in mid 2012.