Page 6 - MEOG Week 09 2022

MEOG PRICES & PERFORMANCE MEOG

Iran anticipates higher oil sales

IRAN IRAN last week said that it anticipates an Iranian crude exports exceeded 1mn bpd dur-
increase in oil sales during the next Iranian cal- ing December.
endar year as reports suggest that a deal on the Oil tracking consultancy Petro-Logistics
gradual removal of US-backed sanctions may be reported that Iranian oil sales climbed to a three-
near. year high of more than 1mn bpd in December
Seyed Nezamuddin Mousadi, spokesman before falling to around 700,000 bpd in Janu-
for the Islamic Consultative Assembly said that ary. CEO Daniel Gerber was quoted by Reuters
“based on the parliament’s decision, the amount as saying: “We wouldn’t expect to see 1mn bpd
of oil sales for the calendar year of 1401 – which consistently until there is a change in the political
begins in late March – will be considered at landscape.”
1.4mn bpd at $70 per barrel.” Meanwhile, Iranian oil production is esti-
He added: “Based on the deliberations of the mated to have reached 2.5mn bpd during Jan-
relevant officials in the Budget Integration Com- uary, an increase of around 500,000 bpd year on
mittee and considering the country’s capacity, year, but still well below the 3.8mn bpd level of
this resolution has been finalised at the Integra- January 2018 before the US withdrawal from the
tion Committee and the Ministry of Petroleum Joint Comprehensive Plan of Action (JCPOA).
has announced that there is enough capacity The country has also set a target of increasing
to reach 1.4mn bpd of exports for next year.” oil production capacity to 5.7mn bpd by 2030,
These figures would equate to $35.8bn in crude which is seen requiring a capital budget of
revenues. around $145bn, according to UK-based consul-
Meanwhile, a statement from the assem- tancy IGM Energy.
bly said: “According to the upstream laws, an While Iran looks to expand exports, it is also
amount of oil sales is transferred to the National working to ramp up its domestic refining capac-
Development Fund every year, and this year this ity, which has received significant investment in
share will be about 40%.” recent years, making the country self-sustaining
The announcement comes as oil prices in gasoline production and enabling the export
this week broke $100 per barrel as the crisis in of refined products which are not affected by
Ukraine deepened, while reports suggest that sanctions.™

P6 www. NEWSBASE .com Week 09 02•March•2022