JCPOA implementation to lower oil industry development costs

TEHRAN, Feb. 29 (Shana) – Managing Director of the National Iranian Oil Company (NIOC) Rokneddin Javadi said sustainable implementation of the nuclear Joint Comprehensive Plan of Action (JCPOA) will result in the reduction of development costs in the country’s oil industry.

“The annual 25 billion dollars spent on the NIOC’s development projects is too much,” he said at a working breakfast session with the company’s board of directors and senior officials.

“During sanctions, we spent dearly for recurring purchases, buying from middlemen, and foreign currency exchange,” he added, “These charges will drop by sustained (implementation) of the JCPOA.

He also said that rental fees for oil rigs have fallen from 160,000 dollars per day to 80,000 dollars due to falling global charges and removal of anti-Iran sanctions.
“If we can increase productivity by 10 percent, it will add our income for 2.5 billion dollars which is a considerable and vital sum for the country’s development,” said the NIOC chief.