Oil Production In Iran Is Expected To Increase Due To Big Contracts

(CTN News) – Despite Western sanctions, Iran on Sunday sealed billion-dollar oil production contracts with domestic companies.

A ceremony broadcast on state TV was attended by officials from the oil ministry as well as Iranian businesses to sign agreements worth $13 billion to increase the production of crude oil daily in six major fields.

A government news agency, Shana, called the deals Iran’s “largest oil contracts in a decade” and asserted that they would increase the country’s daily oil production by 350,000 barrels per day, according to Shana, Iran’s official news agency.

The Iranian Oil Minister Javad Owji announced in October that from the end of this year to March 19, the oil production of his country would reach 3.6 million barrels per day.

According to the Persian calendar, the new year will see a production of four million barrels of oil per day, he continued.

After the United States withdrew from a landmark deal to curb Tehran’s nuclear program in September 2017, the oil sector in Iran suffered a blow when Western sanctions were reimposed in 2018, forcing foreign companies to leave the country.

It has been announced by the Iranian oil ministry that the country will “rely on domestic expertise” as part of an effort to boost the Oil production at its west and southwest fields, including Azadegan, a field which lies on the border with Iraq in Khuzestan province.

Furthermore, contracts for the development of the oldest oil field in Iran, Masjed Soleyman, were also signed in Khuzestan.

There are very few wells in the Middle East that are older than Well No 1 in Masjed Soleyman, which was first drilled in 1908.

Two days before the 73rd anniversary of the nationalisation of the Iranian oil industry, which was then controlled by the British-controlled Anglo-Iranian Oil Company, the oil ministry signed the contracts.

Iran announced last week that it had given $20 billion in contracts to domestic firms to ramp up Oil production from the offshore South Pars gas field in the Gulf, which is shared with Qatar.

According to the United States Energy Information Administration (EIA), Iran ranked seventh in the world in terms of crude oil production in the year 2022, according to the report.

According to EIA data, the country is also home to the third-largest proven oil reserves in the world, after Venezuela and Saudi Arabia.

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