BAKU, Azerbaijan, February 24. Iran's oil upstream industry will require an investment of around $120 billion in the next four years, said Omid Shakeri, the country's Deputy Oil Minister for Engineering, Research, and Technology, Trend reports.
Speaking at the third Petrotech Conference in Tehran, Shakeri noted that $35 billion is anticipated to be set aside for the development of Iran’s oil downstream industry, in addition to the upstream investments.
He emphasized that when considering both oil and gas reserves, Iran holds the top position in the world. Iran possesses 10 percent of the world's oil reserves, and the country has a daily production potential of 6 million barrels, he said. However, Shakeri also highlighted several challenges facing the sector, including the decline in oil and gas extraction, international sanctions, financial shortages, lack of investment, and limited access to modern technology.
"In 2013, it was predicted that the role of modern technology in the oil and gas sector would significantly increase, with the value of this market expected to range from $14 to $33 trillion. Currently, the market value of modern technology in oil discovery and extraction is between $100 and $500 billion. The use of hydraulic fracturing technologies has led to an additional 6.2 billion barrels of oil extraction. Projections indicate that by 2040, 33 percent of the world’s gas will be obtained from shale gas through modern technologies," he said.
The third Petrotech Conference, which opened today and will run for two days in Tehran, is expected to witness the signing of six contracts for the production of key equipment for the oil sector and the presentation of nine new products.
Currently, Iran has 74 active oil fields and 22 gas fields. There are 37 oil fields operating under the Southern Oil Zones National Company of Iran, 14 under the Central Oil Zones Company of Iran, 5 under the Arvandan Oil and Gas Production Company, and 18 under the Offshore Oil Company. Additionally, there are 5 gas fields operating under the Southern Oil Zones National Company of Iran, 13 under the Central Oil Zones Company, 1 under the Pars Oil and Gas Company, and 3 under the Offshore Oil Company.
Iran's total hydrocarbon reserves amount to 1.2 trillion barrels. With existing technology and equipment, Iran can extract 340 billion barrels, but it is only utilizing about 30 percent of its reserves, with 70 percent remaining untapped underground.
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