News ID: 314483
Published: 0244 GMT July 04, 2021

Iran can quickly increase oil output once sanctions are lifted: Zanganeh

Iran can quickly increase oil output once sanctions are lifted: Zanganeh

Economic Desk

Oil Minister Bijan Namdar Zanganeh said on Sunday Iran has taken measures to ensure it can raise crude production in “a very short time” once US sanctions are removed under a revived nuclear deal.

“We have implemented many plans so that with the lifting of sanctions, oil production in a very short time will reach [the level it was] before the sanctions,” Zanganeh told IRNA.

The veteran minister added that Iran can “easily” increase crude production to 6 million barrels a day and spend the revenue in downstream industries to “generate huge income” for the country.

Zanganeh, who leaves office in August when President-elect Seyyed Ebrahim Raisi takes over, said oil markets will not receive a shock with the return of Iranian supply.

“Nothing will happen” to prices, he said, adding that OPEC and other non-OPEC oil producers are “wise enough” to “well digest” the return of Iranian crude to the market. ‘

Zanganeh added that Iran’s new government will face an “extraordinary situation” and that there is no “quick fix” to problems. “We all should help [the next government] minimize the pressure on people.”

The outgoing minister advised his successor to put the return of Iranian crude to global markets high on the agenda.

“The most important task of the [next] minister is bring Iranian oil to the global markets,” he said.

Iran has repeatedly stated that the country is ready to come back to the oil market with full force after the removal of the US sanctions.

In June, the National Iranian Oil Company (NIOC) Deputy Director for Production Affairs Farrokh Alikhani said that the company has taken all the necessary measures and is ready for boosting oil output to the pre-sanctions level within a month.

“Precise weekly, monthly, and quarterly planning has been made to restore oil production to pre-sanctions level, and if sanctions are lifted, most of the country's oil production will be restored within a month,” Alikhani said.

“The average daily production of Iranian oil before the reimposition of sanctions was 3.38 million barrels per day, and the NIOC has planned to return to the pre-sanctions production in the first step if the sanctions are lifted, and in the next step to increase production capacity to more than four million barrels per day,” Alikhani explained.




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