Monday, 13 December 2010

Iran to increase oil production with new facilities

Iran's Deputy Oil Minister and MD of the National Iranian Oil Company (NIOC) Ahmad Qal'ebani has said that Iran plans to build new oil facilities in the south western province of Khuzestan. He added that an increase in oil production was of paramount importance to the Islamic Republic.

"Creating capacity for oil production is necessary and creating surplus production capacity will provide Iran with an upper-hand on the international scene," said Qal'ebani. Elaborating on the new facilities, Qal'ebani said that they would occupy an area as vast as 20 development phases of the South Pars gas field.

He also noted that Iran would invest up to $1.3 billion in the development of the Darkhoveyn oil field in Khorramshahr, adding that oil production in the field has increased by around 60,000 b/d reaching a 160,000 b/d output during the second phase of development.

Iran plans to attract foreign investors in order to increase its oil production from 4.2 million b/d to 5.3 million b/d by 2015. Earlier in the year, Iran's OPEC governor warned that the world would face an oil crisis if production continued at the same rate.

"The world faces great uncertainties in security of energy supply and the price of crude is still undervalued and set to hit $100 in the short term," said Mohammad Ali Khatibi.

"The world is concerned about the security of energy supply due to the anticipation of a drop in global oil production and a drop in the supply from non-OPEC countries," he underlined, adding that the era of cheap oil was over.

Source: Iran Daily

For more news and expert analysis about Iran, please see Iran Strategic Focus.

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