Azerbaijan, Baku, August9 /Trend/
Iran's oil production declined by 96,000 barrels of oil per day due to gas shortages in new oil reserves, Mehr News Agency reported, quoting Deputy Oil Minister Ahmad Ghalebani as saying.
"Iran's oil production has dropped by 96,000 bpd since 2004, mainly due to a shortage of gas to inject into the oil reserves", he said.
He noted that pre-sales of Iran's oil export and mounting demands on the oil ministry would create a problem in providing oil.
A total of $8.5 billion was attracted in investments by the country's oil industry during the current solar year (started on March 20, 2011) through domestic resources and $4.5 billion were issued as bonds.
According to the Fifth Development Plan (2010-2015), Iran should increase oil production by 1 million bpd.
Most of Iran's oil wells are in the second half-life. To preserve the current production level, Iran should repair the oil wells, inject 150 million cubic meters of gas per day, and install pumps.
A lack of drilling rigs for onshore and offshore fields is another reason for reduced oil production. Iran ranks second in the world in terms of oil reserves, but currently less than 100 drilling rigs are active in the country.
The lack of gas for injection into oil reserves is another problem. Currently 30 oil fields in Khozestan province require gas injection, but the gas injection applies to 10 oil fields. Meanwhile a shortage of pumps in wells also reduces oil production.