Oil Minister Mohsen Paknejad said Iran’s oil and gas sector recorded notable growth in the Iranian calendar year 1403 (March 2024–March 2025) despite receiving only 22% of its approved financial resources. According to Shana, the official news outlet of Iran’s Oil Ministry, the official reported that the value added in the oil and gas extraction sector grew 6.2%, more than double Iran’s overall economic growth of 3%. Paknejad added that in the first half of 1404 (March–September 2025), Iran’s crude oil and condensate exports increased significantly compared with the same period last year, signaling stronger production and export performance.
The minister announced that Iran’s crude oil production capacity has reached 3.9 million barrels per day, while gas condensate capacity stands around 750,000 barrels per day. He estimated Iran’s raw gas production capacity above 1 billion cubic meters per day. Production from joint oil fields has also risen, with an 80,000 bpd increase, outperforming the target of 56,000 bpd for 1403. Downstream performance exceeded expectations as well: gasoline and gasoil production reached 110 million and 115 million liters per day, respectively—both higher than planned.
The minister warned, however, that Iran faces serious financing constraints. He said meeting the goals of the Seventh Development Plan will require about $190 billion in new financial resources.
The minister highlighted accelerated efforts to reduce gas flaring. Flaring-recovery projects—both short-term and long-term—have advanced, allowing Iran to recover 3.3 billion cubic meters of flare gas, more than double the plan’s 1.5-billion-cubic-meter target. To address domestic gas shortages, particularly in industry, he said 24 oil fields and 34 gas fields have been offered to interested companies and investors to attract capital and boost production. Paknejad concluded that despite limited funding, Iran’s oil and gas sector remains resilient, with rising production, increasing exports, and growing investor engagement.
