As long as Iran exports crude oil without any problem, receives the revenues easily and finances energy projects, the nuclear deal, formally known as Joint Comprehensive Plan of Action, will remain valid in the oil industry, the Oil Ministry’s deputy for international affairs said.
“Adherence to the pact means Iran is able to purchase oil industry equipment from international markets with ease and Iranian ships and tankers do not face barriers in carrying freights,” Amirhossein Zamaninia was also quoted as saying by IRNA on the sidelines of the Sixth Iran-Europe Banking and Trade Conference in Tehran on Saturday.
“The deal is said to be under pressure, while many other international agreements are under pressure; even the US President Donald Trump himself is under pressure,” he added.
Iran and six major powers signed the nuclear agreement in July 2015 and started implementing it in January 2016. Under JCPOA, Iran undertook to put limits on its nuclear program in exchange for the removal of nuclear-related sanctions.
Trump has criticized the deal, which was negotiated under his predecessor Barack Obama, as “the worst and most one-sided transaction Washington has ever entered”.
JCPOA's Benefits in Oil Industry
Stressing that Iran’s oil industry has benefited the most from JCPOA in a fairly short period, the official said that following the deal, the country has raised oil and gas condensate production by about 1.4 million barrels per day and increased exports by 1.18 million barrels a day.
According to Zamaninia, Iran has raised crude extraction from West Karun oilfields by 400% with domestic investments.
He noted that in the roughly two-year period, gas production has reached 553 million cubic meters per day from 285 mcm/d, indicating a suitable progress.
"Iran’s gas exports will soon reach 60 mcm/d," he said.
Zamaninia announced that 92% of Iranians in urban areas and 76% of people in rural areas are linked to the natural gas network.
“Five years ago, Iranian power plants met 42% of their fuel needs from liquefied ones, such as diesel and mazut, which has been lowered to less than 10%. The country has increased gas production and follows the policy of substituting gas for liquefied fuels in power plants,” he said.
The deputy oil minister also said major upstream contracts will be sealed under the new model of oil deals, dubbed Iran Petroleum Contact. However, they are awaiting Trump’s May 12 decision on Iran sanctions, which has slowed down the pace of developments.
"The ministry has provided about $6 billion in financial facilities to local companies for sustaining and raising domestic production," he said.
Zamaninia noted that the country will launch five petrochemical plans, which include the complexes of Morvarid, Kavian, Entekhab, the second phase of Takht-e Jamshid and a plant in Asalouyeh, in the present fiscal year (started March 21).
