BAKU, Azerbaijan, October 8. Iran has significantly increased its crude oil production over the past year, with daily output rising by more than 120,000 barrels, the country’s Minister of Oil, Mohsen Paknejad, told reporters, Trend reports.
Paknejad noted that even with a mountain of hurdles to jump over, like economic woes and international sanctions, cranking up oil production has stayed at the top of the government's to-do list.
“Over the past year, Iran has also recorded growth in crude oil exports. In some cases, even record figures have been achieved in terms of crude oil export volumes,” Paknejad said.
Commenting on the potential impact of the activation of the “Snapback” mechanism, which would restore United Nations (UN) Security Council resolutions against Iran, and its possible negative effects on crude oil sales, the minister added that following the approval of the “Shipact” law in May last year, Iran faced severe restrictions.
However, through timely and adequate measures, the country managed to bypass sanctions and continue its crude oil sales effectively. Therefore, the activation of the snapback mechanism will not lead to the imposition of tougher restrictions.
“Of course, the implementation of these resolutions may cause certain side effects. However, if necessary, appropriate measures will be taken,” Paknejad added.
The August report of the Organization of the Petroleum Exporting Countries (OPEC) shows that Iran’s daily crude oil production stood at 3,218,000 barrels, which represents a 27 percent decrease compared to July.
Currently, Iran has 74 active oil fields and 22 gas fields. Of these, 37 are operated by the National Iranian South Oil Company, 14 by the Iranian Central Oil Fields Company, five by the Arvandan Oil and Gas Production Company, and 18 by the Iranian Offshore Oil Company. As for gas, five fields are located in the territory of the National Iranian South Oil Company, 13 in the Iranian Central Oil Fields Company, one in the Pars Oil and Gas Company, and three in the Iranian Offshore Oil Company.
Iran’s total hydrocarbon reserves are estimated at 1.2 trillion barrels. With existing equipment and technology, about 340 billion barrels can be extracted, meaning that only around 30 percent of reserves are recoverable, while the remaining 70 percent remains untapped underground.
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