Gov’t Targeting Higher SP Output

Gov’t Targeting Higher SP Output
Gov’t Targeting Higher SP Output

Funds will be allocated for production of 75 million cubic meters of gas and 90,000 barrels of oil in the South Pars field in the next Iranian calendar year (March 2015-2016), head of the Management and Planning Organization of Iran (MPO) said, Shana news agency reported.

“Increasing oil production capacity is a government priority,” Mohammad Bagher Nobakht said, adding that Iran has the capacity to produce 2 million barrels of oil per day, although its output now is close to one million barrels.

South Pars field in the Persian Gulf is Iran’s largest natural gas field estimated to hold 40 percent of the country’s gas reserves. Iran holds the world’s second biggest gas reserves after Russia, and the fourth-largest proven crude oil reserves.

 It holds 17 percent of the world’s proven gas reserves and more than one-third of OPEC’s reserves.

The budget bill for next year has allocated development funds for oil and gas projects that are at least 80 percent complete.

Allocated in the draft budget is $60 million for supply of gas to small towns and remote villages, and $60 million for standardizing heating and cooling systems in schools.