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Iran aims to increase oil production as sanctions ease

by ChemOrbis Editorial Team -
  • 19/03/2015 (16:17)
According to Iran’s official news agency IRNA, Iran may increase its oil production capacity by 1 million tons barrels per day as sanctions stemming from the country’s nuclear plans are lifted. However, the realization of this expansion plan will take some time as sanctions may be rolled back slowly. Iran and six major powers - the United States, France, Britain, China, Russia and Germany are expected to reach an agreement over the country’s nuclear program by June 30, 2015.

Iran aims to increase its oil production by 1 million bpd to 3.8 million over the next few months; which would leave the country behind only Saudi Arabia among the largest producers in the Organization of Petroleum Exporting Countries (OPEC). Some industry sources, meanwhile, argued that more realistic post-sanctions targets for Iranian oil production would be around 3.4 or 3.6 million barrels/day.

In addition, Iran has indicated plans to increase its oil production by an additional 1 million bpd by bringing new fields into production at sites near Iran’s borders. One industry source estimated that it would take about $50 billion of investment and at least five years for Iran to add another million barrels of daily oil production capacity.

Analysts commented that any increase in Iran’s oil production will contribute to the global supply glut for oil and put further downward pressure on oil prices.
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