• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 11 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 10 hours Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 14 hours Did China cherry-pick the factors that affected the economic slow-down?
  • 16 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 16 hours "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 3 days U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 4 days Nord Stream - US/German consultations
  • 410 days Class Act: Bet You've Never Seen A President Do This.
  • 6 days An Indian Opinion on What is Going on in China
  • 6 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 3 days Forecasts for Natural Gas
  • 3 days Australia sues Neoen for lack of power from its Tesla battery
  • 6 days Storage of gas cylinders

Iran Expands Oil Production Capacity

Iran is taking a step that would seem counterintuitive in an environment of subdued demand for oil and oil products: it is boosting its oil production capacity, Bloomberg reports, citing a statement by oil minister Bijan Zanganeh.

"It's true that our output is low because of cruel and illegal sanctions, but things won't stay the same," the official said on Iranian TV. "We need to increase our production capacity to be able to return to the market in full force and restore our share whenever necessary."

The production boost will come from the Yaran field, one of the five oil fields along the border between Iran and Iraq. Tehran has prioritized these fields to get whatever is left out of them after years of exploitation.

The start of Yaran's development was announced in 2016 after a prolonged delay, eyeing an initial output rate of 30,000 bpd. Now, the Persia Oil and Gas Industry Development Co. has sealed a $463-million deal with the National Iranian Oil Company to develop the field further, adding a cumulative 40 million barrels to its output over ten years. 

Persia Oil and Gas Industry Development Co. will need to raise $227 million in direct investment for the development of Yaran, and another $236 million to cover the operating costs.

The Yaran field, which is divided into a North and South part for its development, has estimated reserves of some 550 million barrels of crude.

Iran has been hit hard by U.S. sanctions imposed on the country after President Donald Trump took office and pulled the U.S. out of the so-called Iranian nuclear deal. Its oil exports, which had risen to more than 2.5 million bpd by August 2018, had since fallen to about 100,000 to 200,000 bpd, according to Reuters.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News