Ali Kardor

Iran says needs more crude production capacity for economic upturn

TEHRAN, Sep 10 (Shana) — Managing Director of National Iranian Oil Company (NIOC) Ali Kardor says a crude oil production capacity of 4mbd cannot ensure an economic upturn for Iran, saying the country needs to be more focused on enhancing recovery from its hydrocarbon reserves.

Addressing a seminar with representatives of upstream oil and gas companies on Saturday, Kardor said Iran must not lag behind its regional rivals in recovery of oil and gas from its reserves.
“Neighboring countries including Saudi Arabia and Iraq are hurriedly developing their projects and we cannot afford to stay behind them,” he said.

He said Iran needs at least 100 billion dollars of investment to strike its upstream goals in the petroleum industry under the 6th five-year development plan.

He said low rate of recovery from hydrocarbon reserves is one of the biggest shortcomings of Iran’s oil industry, therefore, “we need to put most of our attention on enhancing recovery from productive reserves.”

“We have to admit that the production capacity of 4 million barrels per day cannot lead the country to an economic boom and the amount must increase,” he added.

Speaking of the new framework of oil contracts model, he said NIOC will consider a mix of different contract models in the new deals it will strike with contractors.

He advised Iranian developers to partner with those international oil companies that can finance projects by resources above ECA ceilings for funding projects.

Regarding oil recovery from the South Pars oil layer, Kardor said the layer will be hopefully productive by the end of the current calendar year to March 20 2017.

By SHANA