Iran Targets 3 mbpd in Oil, Condensates Export

Iran's export of crude oil and gas condensates will rise to around 3 million barrels per day in the current Iranian year that ends in March, managing director of the National Iranian Oil Company said.

“Crude exports will reach 2.5 million barrels per day this year” from the current 2.2 million barrels, Ali Kardor was also quoted as saying by IRNA on Sunday.

Kardor, who is also a deputy oil minister, added that in view of the country’s 500,000 barrels of daily gas condensate shipments, combined crude and condensates exports will reach 3 million bpd.

Gas condensate is a type of ultra light crude found in the Persian Gulf's gas reservoirs.

Mohsen Qamsari, NIOC’s deputy for international affairs, said Tehran plans to raise crude exports by 150,000 barrels per day in the coming months.

“Iran's oil exports will soon increase by about 150,000 barrels per day, which is well within grasp given the (anticipated) supply and demand trends in the global market,” Qamsari told Mehr News Agency.

He added that Iran has some way to go before boosting exports to 2.5 million bpd, saying the country is aiming 2.35 million bpd in exports in the short run.

“At present, Iran exports between 600,000 bpd and 650,000 bpd to Europe on average,” he said.

Domestic oil consumption stands at 1.8-1.85 million barrels a day, thus any rise in oil output is expected to boost outbound shipments.

Iran, the third-largest producer of the Organization of Petroleum Exporting Countries, has been regaining market share at a faster pace than analysts had projected since sanctions were lifted in January.

Exports of crude and condensates reached five-year high of 2.60 million barrels per day or more in September, according to tanker and shipping data.

However, preliminary data suggest that exports are set to decline 5% in November to a four-month low, a source with knowledge of its preliminary tanker schedule said, as low seasonal demand in Europe takes the edge off its post-sanctions export bonanza.

Oil exports typically hit a low around October or November each year, reflecting peak refinery maintenance seasons in Europe and Asia.

Iran's sales of crude, excluding ultra light oil condensate, are set to fall to 1.89 million bpd in November, Reuters reported.

Compared with a year ago, Tehran's November crude exports are set to rise 156%, according to the source. Details on the condensate loadings for November are not yet available.