SHANA – Iran says it can reach 6 million barrels per day of crude output through optimized management, foreign investment and state-of-the-art technologies.
“Fortunately, given the approach adopted in the past two years in Iran and by relying on enhanced oil recovery methods, we have concluded that reaching this level of production capacity is possible through optimized management, foreign investment and state-of-the-art technologies,” said Managing Director of National Iranian Oil Company (NIOC) Ali Kardor said on Tuesday.
Addressing the 3rd Iranian Petroleum and Energy Club Congress and Exhibition, Mr. Kardor said Iran’s crude production capacity is projected to reach 5 mbd by the end of the 6th five-year development plan to 2022.
Iran’s current production capacity stands at around 4 million barrels per day.
However, he added, the 6-mbd production capacity will be made possible no sooner than the second year of the 7th development plan.
The NIOC chief further said that oil production costs are still suitable for Iran, adding the industry is one of the most lucrative ones in Iran compared with other oil producing countries.
Regarding development of the supergiant South Pars Gas Field, Kardor said that development of the massive gas field will come to an end by 2018. Iran shares South Pars, the world’s largest natural gas reserve, with Qatar in Persian Gulf waters.
The official also said that NIOC will in the near future consider issuance of currency-based bonds.
He said the National Development Fund of Iran and banking resources will be tapped for issuance of the bonds.
“We intend to conclude 10 oil contracts this Iranian fiscal year (begins March 21),” he noted.
Kardor added that Iran’s first deal for construction of a floating liquefied natural gas (FLNG) facility will be signed with a Norwegian company soon.
The 20-year deal is intended for production of 500,000 tons of LNG. Pricing formula of the products will be determined by the Iranian Ministry of Petroleum, he said.