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Iran is currently producing a little over 3.8 million bpd.
Iran is currently producing a little over 3.8 million bpd.

Iran Ready to Ramp Up Crude Output to 4 mbpd

Tehran is facing no restriction in cashing in on crude revenues and payments by foreign customers are now deposited into a Central Bank of Iran account

Iran Ready to Ramp Up Crude Output to 4 mbpd

Iran is ready to raise oil production to 4 million barrels per day in the next two to three months depending on market demand, a senior official from the National Iranian Oil Company said on Monday.
"We can increase crude production based on market requirement," Mohsen Qamsari, the director for international affairs at NIOC, said at the Argus Crude Forum in Singapore, Reuters reported.
Iran, which plans to return output to pre-sanctions levels of more than 4 million bpd, has agreed to attend an informal meeting later this month among members of the Organization of Petroleum Exporting Countries in Algeria where they are expected to revive a deal on freezing global output.
"OPEC's third-largest producer is currently producing a little over 3.8 million bpd," Qamsari said.
It is trailing the group's top exporter Saudi Arabia and Iraq with an output of around 10.6 million barrels a day and 4.6 million bpd, respectively.
Attempts by OPEC and non-OPEC oil exporters to reach a pact on stabilizing output levels earlier this year foundered after Saudi Arabia refused to commit to the pact at the last minute because Iran had declined to participate in the talks.
Tehran's efforts to recoup market share that was lost under international sanctions targeting its nuclear program have paid off in Asia, where its four biggest buyers raised their imports by 61% in July versus a year ago.
Iran is also eying shipping supplies to new Chinese crude buyers via trading company Trafigura.
"Looking ahead, NIOC may raise its production capacity to 4.3 million bpd in the first quarter next year and eventually reach 5 million bpd in two to three years," Qamsari said, noting that the bulk of any new production would be heavy crude.
"We believe that the market is more in favor of heavier grades and that's why we are going to introduce a new one."

------- Oil Payments
Tehran is facing no restriction in cashing in on crude revenues and payments by foreign customers are now deposited into a Central Bank of Iran account, Amirhossein Zamaninia, Iran's deputy minister for international affairs, was quoted as saying by Shana on Sunday.
"Major European banks have no legal restriction to be in touch with Iranian banks, but they are being cautious due to penalties imposed by the US Treasury [on trading with Iran]."
Zamaninia noted that a number of midsized European financial institutions have effectively resumed relations "and problems concerning large banks will be addressed soon".
Sanctions had significantly restricted Tehran's access to global financial and banking system, leading to a backlog of payments by foreign buyers and depriving the country of its biggest source of revenue under the spell of sanctions.
But Tehran has started to receive billions of dollars in oil dues after the easing of nuclear-related restrictions in January.
Ali Tayyebnia, the economy minister, recently said Iran used to pay a hefty cost to receive petrodollars, but crude transactions with foreign customers are now conducted without extra costs.
Iran hopes to attract more than $100 billion for investment in its oilfields in a series of tenders, the first of which is planned to be held in September.

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