Breaking: Firms in Iran on stand-by to ramp up oil production
Largest oil producing company in Iran says it is ready to raise production to levels above its output in 2018 when the US illegally targeted the Islamic Republic’s oil industry with the most aggressive sanctions ever.
According to Press TV, the National Iranian South Oil Company (NISOC), with a daily production capacity of more than 3 million barrels, is able to supply 80 percent of the country’s crude oil output, its CEO Ahmad Mohammadi said.
“With the realization of the planned programs in the last two years and the creation of production capacity, which was done with the efforts of the employees and technical and operational specialists of the company and its subordinates, NISOC is prepared to bring its output to the level above the pre-sanctions production,” he said.
Mohammadi said the five companies operating Karoun, Maroon, Aghajari, Gachsaran and Masjed-e-Soliman oil fields have been notified of the output increase plan.
“The plan for stepped-up production in all operational sectors and the five companies is in process, and as soon as the sanctions are lifted and the ground is ready for oil exports, the production hike will realize,” he added.
Iran is closely watched by the market for a return of the country’s barrels which averaged around 2.3 million barrels per day (bpd) before the sanctions.
Iran is currently in talks with the remaining signatories of a 2015 nuclear deal to have the US sanctions removed and resume its normal oil exports.
Iran’s oil production rose by 137,000 barrels per day to 2.3 million bpd in March, marking the highest crude production growth among OPEC members, according to the Organization of the Petroleum Exporting Countries’s monthly report.
The higher output by Iran which is exempt from making voluntary cuts because of the illegal US sanctions came for the third consecutive month. Iran’s oil production had jumped by 62,000 and 35,000 barrels per day in January and February, respectively.
With transactions mostly done in Chinese currency, Iranian oil flows have continued to Asia’s biggest refiner and consumer of oil products such as gasoline and diesel.
Iran’s other oil customers are salivating at the prospect of resuming shipments from the country as the Vienna negotiations move into a higher gear.