Return to Good Old Days
Iran Oil Output to Hit 4mb/d in 2017 Q1
Iran is one of few countries in the world with huge oil and gas reservoirs that would be able to keep producing for long years. Therefore, Iran will be instrumental in the future of energy supply security in the world. Along with other oil and gas producers, Iran is increasing its output in a bid to get a bigger share of international market. That would serve Iran as a bargaining chip in political interactions.
Iran as the fourth largest oil producer in the world, has moved to bring its production to pre-sanctions level. Due to overtures following the removal of sanctions in the aftermath of a historic nuclear accord, Iran is negotiating with Asian and European companies to export more oil.
Iran has also been revising the terms of its contracts in a bid to tempt back foreign companies that had to pull out of Iran for fear of penalties.
In order to get more familiar with measures taken by National Iranian Oil Company (NIOC) on the global scale, “Iran Petroleum” has interviewed Mohsen Qamsari, director for international affairs at NIOC.
Q: First of all, would you please tell us about the upward trend of Iran’s oil production?
A: Iran has devised plans to increase its output to 4 mb/d, a target which is forecast to be met by early 2017.
Crude oil production currently stands at 3.8 mb/d. Iran is projected to bring its output to more than 4 mb/d in the first quarter of 2017 and to 5 mb/d in two to three years. The bulk of Iran’s new production capacity would be related to heavy crude oil which is highly demanded by market.
Q: What is NIOC’s plan for exporting oil from the jointly owned oil fields in West Karoun area?
A: Definitely, full development of West Karoun shared fields, whose primary output would be 300 tb/d, will play a significant role in the growth of Iran’s exports. Furthermore, a new terminal is being launched in the vicinity of Kharg Island in the Persian Gulf. After its completion up to the end of the current [calendar] year, it will be ready to export crude oil from West Karoun area.
Q: How do you assess Iran’s oil and condensate exports to Asian and European markets?
A: The level of Iran’s crude oil sales to Asia has remained unchanged, but exports to Europe will exceed 500 tb/d by the end of September. As you know, Asia is the largest energy consumer in the world and all producers are fixing their eyes on this market. Since Iran is located in this region, our priority would be to export 63% of Iran’s oil to this region with the rest going to destinations in European countries and other countries in the region. Gas condensate is currently being exported only to Asia. In the meantime, negotiations are under way with some European and Asian countries for increasing Iran’s oil sales. That would be officially announced once they are finalized.
Regarding crude oil and gas condensate exports, we can say that a total of 2.74 mb/d of crude .