Page 7 - MEOG Week 04 2022
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MEOG PRICES & PERFORMANCE MEOG
Iran to increase oil
production capacity
IRAN THE National Iranian Oil Co. (NIOC) Yadavaran and Darkhoein, with the first three
announced this week that it plans to increase the divided into north and south projects. The block
country’s crude oil production capacity from the holds an estimated 67bn barrels of oil in place
current level of around 3.8mn barrels per day to (OIP).
5.7mn bpd by the end of the decade. Oil production from the fields currently runs
Speaking to local media, NIOC director of at around 420,000 bpd.
corporate planning Karim Zobeidi said: “By Meanwhile, as Iran kicks off cash-inten-
attracting the necessary investment, we intend to sive efforts to raise gas production to 1.5bn
increase Iran’s oil production capacity to 5.7mn cubic metres per day during the same period,
barrels in the next eight years.” it appears unlikely that either target will be met
He added that “the participation of domes- unless a new deal is reached for the removal of
tic investors in the drilling operations of new oil sanctions.
wells is more important for us.” Ian Simm, principal advisor at consultancy
Zobeidi said that maintaining oil production IGM Energy, told NewsBase that Iranian esti-
levels was another focus area for investment, mates peg the cost to develop the oil sector at
pointing to the need for well workovers, addi- $145bn over the next eight years, with the main-
tional processing facilities and pipelines. tenance and expansion of gas production levels
Much of the planned expansion will come coming in at another $80bn.
from the south-western West Karoun oilfield “Iran is certainly being ambitious with these
cluster. targets. While it has noted plans to raise funds
In October, NIOC CEO Mohsen Khojasteh- from domestic and international investors and
mehr reiterated the company’s focus on expand- courted Chinese investment, it appears unlikely
ing production from the area, targeting $11bn of that it will be able to provide the capex required
budget allocation to add 1mn bpd of new output. to achieve both its oil and gas goals.”
In comments carried by official state energy Simm added that Tehran faces a tough deci-
media outlet SHANA, he said: “We need around sion on whether to prioritise one or the other
$11bn in investment to develop the second phase amid rampant gas consumption and the econ-
of the North Azadegan and Yadavaran oilfields, omy struggling to replace revenues from crude
as well as the South Azadegan and Yaran.” He oil sales.
added that the 1mn bpd expansion was one of Late last year, the Ministry of Petroleum said
NIOC’s top priorities. that work was underway to increase oil capacity
The West Karoun cluster in Khuzestan Prov- to 3.952mn bpd by March 2022, representing an
ince includes several large oilfields that straddle increase of 144,000 bpd on the figure reported
the Iran-Iraq border, namely Azadegan, Yaran, for December.
Week 04 26•January•2022 www. NEWSBASE .com P7
