As world powers enter the final stage of Iran’s nuclear negotiations, Iran’s oil minister said on Monday that the country can quickly increase crude oil production.
Iranian Oil Minister Zanganeh told reporters in Tehran on Monday: “The next Iranian government should make increasing oil production to 6.5 million barrels per day a top priority. Increasing production will It can improve national security and political strength.”
Iran’s current daily output is only about 2.5 million barrels, and has not reached the level of 6 million barrels since the 1970s.
Iranian and Russian officials said that the fifth round of nuclear negotiations has begun in Vienna; although there are still some issues that need to be resolved, this may be the final round of negotiations. The United States may ease sanctions on Tehran in the oil, banking and shipping sectors if the nuclear deal is restored, but it is unclear how much or how quickly.
Iran’s economy has already been hit hard by U.S. sanctions, and now it is preparing to increase crude oil production and boost exports in anticipation of the U.S. relaxing sanctions. Most oil analysts expect it to be able to increase production by 500,000 barrels per day by the end of this year.
Zanganeh said Iran would have no trouble finding buyers for its increased production. The country has increased exports this year but usually sells crude oil secretly. Indian refiners have said they will import Iranian crude once sanctions are lifted.
Iran will hold presidential elections on June 18, and Tehran is keen to end nuclear negotiations in Vienna before then. Iranian President Rouhani will resign after two terms in office, although he will remain in office until around August. Zanganeh has said he will retire and will not accept a re-election offer from the new president.
Iran’s National Oil Company on Monday signed a preliminary agreement with local companies to study Azadegan, a massive oil field shared with Iraq.
National Iranian Oil Co. said the deals could increase production capacity at Azadgan, but did not specify by how much. The field currently produces about 215,000 barrels of oil per day and has estimated oil reserves of 32 billion barrels.
Iran is now increasingly reliant on local companies to develop its oil industry as U.S. sanctions force foreign investors out. Zanganeh said foreign companies may eventually be able to partner with local companies on these projects. </p
