Iran boosted oil output at three western fields faster than it expected as top OPEC producer Saudi Arabia called for a collective output cut later this month to help rebalance the market.
Output at the fields in the West Karun region, near Iran’s border with Iraq, rose to about 250,000 barrels per day from 65,000 barrels in 2013, the Oil Ministry’s news service Shana reported Sunday, citing President Hassan Rouhani at a ceremony to formally open the project, Bloomberg reported.
Iran had expected to reach that output target by the end of the year, Mohsen Ghamsari, director for international affairs at the National Iranian Oil Co., said in September.
Meanwhile, Saudi Arabia’s Energy Minister Khalid al-Falih said OPEC must agree to implement a proposed cut in crude production for OPEC countries.
"In this situation marked by a disruption in oil markets, it is imperative to reach a consensus among OPEC countries and to agree on an effective mechanism and accurate figures to activate the historic agreement of Algiers," Falih was quoted as saying by Reuters on Sunday.
OPEC members agreed in a September meeting in Algeria to cut collective production to around 32.5 million barrels a day. The group will meet in Vienna on Nov. 30 to discuss and finalize the plan. OPEC reported last week that Iran raised its monthly output by the most since international sanctions were lifted in January.
Iran has negotiated an exemption from the necessary production cuts at the meeting in Algiers to compensate for the production capacity it lost when international sanctions targeted its oil industry.
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