Oil Projects Worth $218b Ready for Commissioning

Oil Projects Worth $218b Ready for CommissioningOil Projects Worth $218b Ready for Commissioning

In the oil sector, $218 billion worth of projects are ready for commissioning, First Vice President Es’haq Jahangiri said on Tuesday.

"There are numerous plans in energy and power sectors whose viability studies have been completed and they are in line to be launched as soon as financial constraints are removed," Jahangiri was quoted as saying by ILNA at the 5th International Conference on Energy and Construction.

The official stressed that foreign contractors are welcome to undertake the projects on condition that Iranian skilled workforce account for 50% of their human resources, needless to say knowhow transfer to Iran is a top priority. Underscoring the drastic fall in countries' oil revenues, Jahangiri said, "In 2011, Iran's annual oil and gas revenues amounted to $118 billion, whereas it has suffered a dramatic decrease this year, reaching $25 billion.

"We sold more than 2 million barrels of crude per day in the pre-sanctions era each for $108, yet after sanctions the sales declined to 1 million bpd each costing less than $40."

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 within a week after sanctions are lifted and by 1 million barrels within the following five months.

An Oil Ministry official has 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.

Sanctions curbed Iran’s sales of crude and condensate to 1.4 million barrels a day in 2014 from 2.6 million in 2011, the US Energy Information Administration said in June.

The landmark July 14 nuclear accord between Iran and six world powers and the looming prospect of an end to trade and financial sanctions by early 2016 have spurred Tehran to negotiate oil trade with several states.