Speaking at a ceremony held for the beginning of the drilling operations in South Pars Phase 11, the minister said Iran can export 2.3 million barrels of oil per day (mbd), adding that increasing oil production is Iran’s right and we don’t need anyone’s permission to do so, IRNA reported.
“If sanctions are removed and the necessary resources are provided to rehabilitate some of our older wells, the production of which has been reduced, exports of 2.3 mbd of oil can be achieved,” he noted.
According to the report, an offshore drilling rig, belonging to MAPNA Drilling Company, was settled at SPD-11B platform of South Pars Phase 11.
The drilling rig will dig 12 development wells in the mentioned phase for extracting about one billion cubic feet of gas per day.
In the first phase, by drilling and completing five wells and installing the SPD-11B platform, the initial production capacity of this phase will reach 500 million cubic feet (equivalent to 14m cubic meters) per day.
Later on, by drilling and completing seven other wells, parallel with the initial production, the total rich gas recovery from the platform will increase to one billion cubic feet (equivalent to 28m cubic meters) per day.
Engineering and technical monitoring and supervision of all the mentioned operations will be carried out by Iranian experts and engineers.
Development of the South Pars Phase 11 was officially started in May after several years of hiatus due to various financial and technical difficulties.
In November 2016, Iran signed a $4.8 billion agreement with a consortium including France’s Total, China National Petroleum Corporation (CNPC) and Petropars, a subsidiary of the National Iranian Oil Company (NIOC), on development of Phase 11; however, Total and CNPCI pulled out of the project in 2019 due to US sanctions.
Currently, Petropars is developing the SP Phase 11 project after its partners left the contract.
Iran is planning to produce 4.5 mbd of crude oil and condensate in the next Iranian year, starting March 21.
Jafar Qaderi, a member of the Iranian Parliament cited Zanganeh as saying the target has been set in the country’s budget bill for next year, which is currently being debated in the assembly.
Zanganeh has noted that the export target eyes a sanctions-free market for Iran, if the US lifts the restrictions that have blocked Iran’s conventional ways of selling oil.
“The oil minister was asked by deputies whether the oil export forecast for next year wasn’t optimistic, to which he answered, ‘We have considered this figure conditional upon the removal of sanctions. If conditions improve, this figure will be realized. Otherwise, we will sell participation bonds,” Qadedri said after meeting with Zanganeh.
Iran is counting on receiving over $17.3 billion in oil revenues in the next Iranian year.
“The oil minister stressed that given this export volume, around 25 percent of the money in next year’s budget would be provided,” Qaderi said. “Of course, this has been based on a dollar parity rate of 115,000 rials for basic commodities, and 170,000 for state companies.”
Iran has outlined long-term plans of increasing crude oil production capacity to 6.5 mbd.