Iran 2nd in oil production growth in 2023 despite US sanctions

By Al Mayadeen English
Source: Agencies
29 Jun 2024 23:30

Despite US sanctions, data reveal that Iran's oil and condensates production surged to an average of 3.94 million barrels per day (bpd).

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In this Dec. 22, 2014 file photo, an Iranian oil worker makes his way through Tehran's oil refinery south of the capital Tehran, Iran. (AP)

Iran has emerged as one of the world's fastest-growing oil producers in 2023, according to recent data released by the Energy Institute (EI).

Despite US sanctions, data reveal that Iran's oil and condensates production surged to an average of 3.94 million barrels per day (bpd), marking a substantial 19% increase from the previous year's figures.

These figures as cited by ILNA news agency demonstrate Iran's exceptional growth trajectory amid a global backdrop where most major oil-producing nations experienced declines.

Globally, average oil production only managed a modest 1.4% increase, contrasting sharply with Iran's double-digit expansion.

Iran's growth rate was surpassed only by Guyana, a small South American nation, which saw an impressive 40.8% surge in its production, albeit from a much lower base of 0.391 million bpd.

The data further show significant production decreases among major players. Saudi Arabia, the world's largest oil producer, reported an 8.6% decline, while Russia recorded a 1.1% reduction.

In contrast, the US, the top global oil consumer, saw an 8.5% increase in production, according to the EI figures.

Iran's robust production figures come despite enduring US sanctions imposed since 2018, following the US withdrawal from the JCPOA nuclear deal with Iran.

These sanctions aimed to restrict Iran's oil exports and limit its economic capabilities.

The Iranian Oil Ministry estimates that the country's oil output will surpass 4 million bpd by March next year.

Iran, Russia sign landmark gas agreement

Earlier this month, Russia's Gazprom announced it signed a strategic agreement with Iran's NIGC to facilitate the delivery of Russian gas to Iran.

The memorandum was finalized on June 26 during Gazprom's delegation visit to Iran, led by Chairman Alexey Miller and attended by Iranian interim President Mohammad Mokhber.

According to Gazprom, the agreement aims to foster long-term cooperation for mutual benefit in the energy sector.

Iranian Minister of Petroleum Javad Owji labeled the agreement a strategic milestone that promises to elevate Tehran's status as a regional hub.