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Kharg Terminal Geared for Post-Sanctions Era

Kharg Terminal Geared for Post-Sanctions EraKharg Terminal Geared for Post-Sanctions Era

The strategic project of overhauling underground pipelines at Kharg Oil Terminal in the Persian Gulf has been completed and Iran's largest oil terminal is fully geared for the lifting of sanctions, said the terminal's managing director.

"The process has been completed sooner than the projected deadline and anticipates the directive on hiking output and export from the National Iranian Oil Company and the Oil Ministry in the post-sanctions era," Abbas Asaddouz was quoted as saying by Mehr News Agency.

The project had a time window of 12 months, but was fully completed within eight months since its commencement in January. The project is a major development for the national oil industry given the length and age of the pipelines. Once the world's largest offshore crude oil terminal and the principal sea terminal for Iranian oil, the Kharg Island facilities were commissioned during the Iraq-imposed war of the 1980s following heavy bombing.

Asaddouz added that the terminal has the capacity to raise output to exceed 6 million barrels per day. Additionally, managing director of NIOC, Rokneddin Javadi, announced that Iran's production and export rates will surge by 1 mbpd within the first six months of sanctions removal.

Iran plans to produce 3.8 million to 3.9 million barrels of oil a day by March, with output rising by 500,000 barrels a day soon after sanctions are lifted and by 1 million barrels within the following five months. An Oil Ministry official declared that the Islamic Republic will reach the 500,000-bpd milestone by late November or early December even before most western sanctions are lifted.

Financialtribune.com