Oil, Condensate Exports Edging Toward Pre-Sanctions Level

Oil, Condensate Exports Edging  Toward Pre-Sanctions LevelOil, Condensate Exports Edging  Toward Pre-Sanctions Level

Oil Minister Bijan Namdar Zanganeh said Iran's export of crude oil and gas condensates has reached 2.4 million barrels a day, indicating that the country is now bordering on its pre-sanctions crude output level of around 2.5 million bpd.

"Before the sanctions, we exported a total of 1.35 million barrels of oil and gas condensates per day, but the volume has now reached 2.4 million bpd," Zanganeh was quoted as saying by IRNA.

According to multiple sources, Iran's crude exports were cut to just above 1 million bpd during the sanctions from 2.5 million barrels.

The official added that Iran has "taken back part of its lost market share", hinting at Iran's pledge to ramp up crude production capacity to its pre-sanctions level that stood at 4 million bpd.

The third-largest producer of the Organization of Petroleum Exporting Countries has made it clear it will keep pumping oil until it wrests back its lost barrels from rival producers who marginalized the country in the OPEC hierarchy.

Iran's top oil official also attached special importance on manufacturing 10 groups of high-demand goods and equipment in the oil and gas sector.

"Indigenously manufactured goods would help save the oil industry and the economy in general millions of dollars every year,” he said on the sidelines of the 21st Iran International Oil, Gas, Refining and Petrochemical Exhibition (Iran Oil Show) in Tehran, Shana reported.

He added that the much-needed items, including drilling bits, control valves, electromotors, rotating machinery and metering devices, are being indigenized with the help of universities and research centers. Based on the terms of the contracts, theses scientific centers will collaborate with the Oil Ministry until the produced equipment is commercialized.

------- Boosting Academic Ties

Pointing to contracts signed with different universities to enhance oil recovery from oil reservoirs, Zanganeh said adopting such a policy will have long-term effects on preserving oil extraction from oil fields, especially the old ones, as new experts are being trained to accomplish the objective.

“Increasing oil extraction from old fields with the help of domestically developed know-how tops the ministry's priority list,” he said.

According to Zanganeh, developing the much-needed technology to produce strategic commodities such as gasoline, propylene and methanol calls for close cooperation between domestic research centers and reliable international ones.

A committee to pursue production of important oil equipment by domestic manufacturers was established in October 2014 by Zanganeh to promote the domestic manufacture of goods and machinery.

After that, production of line hangers, subsurface safety valves and mono drilling bits among other equipment started.

The minister issued a new directive that would provide further support for manufacturers of oil industry facilities. Officials believe that the directive will also help boost transparency in oil exchanges and tenders.

Managing Director of Iranian Petroleum Equipment Manufacturers’ Association Reza Padidar had earlier announced that out of 1.2 million items required by the oil and gas industry, 800,000 items are produced domestically, all of which are compatible with international standards.

Some of the equipment includes compressors, drilling and security equipment, pipes and catalysts.

Officials say manufacturing rotating machinery, including turbines, pumps, generators and compressors, can play a key role in developing not only the energy sector but also the whole economy.