59865
Natural gas production is planned to reach 1.3 billion cubic meters per day in four years.
Natural gas production is planned to reach 1.3 billion cubic meters per day in four years.

Iran's Crude Output to Reach 4 Million bpd in April

Iran used to be the second-largest OPEC producer, but trade and financial restrictions stifled production to around 2.5 million bpd as exports whittled down to just above 1 million barrels a day

Iran's Crude Output to Reach 4 Million bpd in April

Crude oil output will reach 4 million barrels per day in April, head of the National Iranian Oil Company said on Saturday.
“Oil production was expected to reach 4 million barrels a day by the end of the present fiscal year (on March 20), but it will take one more month to get there,” Ali Kardor told a drilling technology conference in Tehran, ISNA reported.
According to government data, Tehran is now producing 3.9 million bpd of crude oil and gas condensates, a type of ultra light crude. The OPEC member hopes to lift production by more than 15% of current output level by 2022, the end of its sixth five-year economic development plan that has been delayed by a year.
“As stipulated in the sixth plan, crude oil production should reach 4.7 million bpd. We have sought that target for seven, eight years, but have not come close,” Kardor concurred.
He added that production peaked at 4.2 million bpd for a short spell before the international sanctions were tightened against Tehran in 2011 and 2012.
Iran used to be the second-largest producer of the Organization of Petroleum Exporting Countries, but trade and financial restrictions imposed over its nuclear program stifled production to around 2.5 million bpd as exports whittled down to just above 1 million barrels a day.
It is now the third-largest OPEC producer behind Saudi Arabia and Iraq, which pump around 10 million bpd and 4.5 million bpd respectively.
Kardor added that natural gas production is planned to reach 1.3 billion cubic meters per day in four years.
“To reach our oil and gas production target by 2021, we need to drill a total of 500 wells” with the costlier offshore wells making up 60% of drilling costs, said the NIOC chief.
Iran’s gas production is around 800 million cubic meters per day, nearly two-thirds of which come from South Pars, the giant gas field shared by Iran and Qatar in the Persian Gulf.
Upon the launch of new South Pars phases, Iran hopes to match or exceed Qatar’s gas production this year. The small Arab country reportedly draws 650-700 mcm/d from the joint field.

Colossal Debt
Similar to many national oil companies (NOCs), NIOC too is facing a severe cash crunch and accumulated arrears.
The company’s debt has ballooned to $50 billion, but it is not all down to the plummeting international crude prices for the past three years, according to Kardor, who blamed ill-considered financial and investment models during the past four decades for the present state of affairs.
“As the employer, NIOC has continued to provide funds for oil and gas projects without taking into consideration the progress of operations,” he noted.
According to one report, around 80% of the debt is related to loans the Oil Ministry has taken from the Central Bank of Iran over the years to develop oil and gas development projects, including two dozen phases of the mega South Pars gas project.
A large part of the loans have not been repaid as many energy projects have been hit by repeated delays due to funding constraints, mismanagement and cost overruns.

Short URL : https://goo.gl/MRNZ8Z
  1. https://goo.gl/l5b6CP
  • https://goo.gl/9GPrPW
  • https://goo.gl/FvwQyD
  • https://goo.gl/C2cvBH
  • https://goo.gl/zBpSaL

You can also read ...

Essar’s Oct. Iran Oil Imports Fall
Indian private refiner Essar Oil’s imports from Iran fell by...
NIOC has concluded MoUs with Austria’s OMV and Thailand’s PTTEP for undertaking surveys on the oilfield.
Singapore-based Berlanga Group has signed a memorandum of...
Tehran and Dushanbe have discussed the idea of using tracts of land in Tajikistan for cultivating crops to be imported back to Iran.
In his first overseas trip as Iran's energy minister, Reza...
IEA: US to See Most Crude Output Growth in 10 Years
The United States is expected to account for more than 80% of...
Just two offshore companies accounted for 45% of the total owed creditors this year.
Offshore oil drilling and services companies, hurt by the...
S. Arabia’s Falih: 50% of Excess Oil Remain
The world will still have a surplus of oil by the end of March...
Oil Prices Set for Weekly Fall
Oil prices rose on Friday but remained en route for their...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus