Iran sees increased oil production and exports amid promising nuclear talks
Iran has seen an increase in its oil and gas production and exports since 2021 as the country strives to revive the Iran nuclear deal.
The rapid recovery of the country’s energy sector, despite the fact that anti-Iranian sanctions are still in place, is mainly driven by the promising prospect of the ongoing nuclear talks in Vienna, Xinhua news agency reported.
Iran’s oil exports, which had fallen sharply under Western sanctions from 2012 to 2015, resumed their upward trend in 2016 after the signing of the Joint Comprehensive Plan of Action (JCPOA) in 2015. Iran’s oil averaged 2.5 million barrels per day in 2017, up 200,000 barrels from 2016.
According to the Iranian website Tejarat News, at the end of 2017, before the reimposition of US energy sanctions, Iran was producing 4.7 million barrels of oil and gas condensate per day, including 3.8 million of crude oil.
Iran’s oil reserves were estimated at 157 billion barrels, or 10% of the world’s crude oil reserves and 13% of the Organization of the Petroleum Exporting Countries (OPEC) oil reserves.
However, in May 2018, former US President Donald Trump withdrew Washington from the JCPOA and reimposed sanctions on Iran’s energy sector, causing Iran’s crude production market to plummet.
The downward trend only stopped when Iran and world powers began talks in 2021 aimed at reviving the JCPOA. Since then, the country’s oil production has started to see a rebound as more optimistic lights were cast on the country’s energy sector.
In its monthly oil market report for February, OPEC estimated Iran’s average production in 2021 at just over 2.4 million bpd, up from an average of 2 million bpd in 2020.
Javad Owji, Iran’s oil minister, said in an interview on state television earlier in April that US goals to zero sales of Iranian oil, in line with its maximum pressure campaign, had not been met. reached.
Iran’s oil production capacity has reached pre-sanctions levels, Owji said, adding that Iran’s current oil production capacity is over 3.8 million bpd.
Through effective measures in onshore and offshore oilfields, drilling new wells and repairing old ones, and renovating and modernizing oil reserves facilities and centers, Iran has been able to to restore oil production levels to pre-US sanctions levels, he added. mentioned.
In addition, new “stable” customers have been explored for Iranian oil, the minister said.
“In this regard, we have used all capacities inside and outside and have varied our contracts,” he told state television.
Iran hopes to resume oil sales on international markets by reviving the JCPOA and removing sanctions. Energy analysts predict that with the lifting of restrictions, Iran could be able to ship 1.3 million barrels of oil per day to international markets by the end of the current year. .
Ali Shams Ardakani, an expert in energy economics, said the upward trend in Iranian crude exports is expected to continue in the coming months.
“The market is still attracted by Iranian oil,” added the expert.
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