Iran signs $13bln in domestic oil production deals

By Al Mayadeen English
Source: News Websites
18 Mar 2024 00:49

Iran aims to add 350,000 daily productions of oil barrels and increase total production to 3.6 million per day, as previously promised.

Iranian oil tanker Fortune is anchored at the dock of the El Palito refinery near Puerto Cabello, Venezuela, May 25, 2020 (AP)

Iran just sealed $13 billion worth of deals to boost oil production in six major oil fields and counter Western sanctions.

According to Shana, the official news agency for the oil industry, this move signifies Iran's largest investment in the sector over the past decade. Iran aims to increase production by 350,000 daily barrels, it added.

This comes amid extensive Western sanctions imposed on Iran, forcing foreign companies to withdraw from the Iranian market. Iran, in response, has since been investing in self-sufficiency and home production to counter the effects of sanctions.

Iran will be "relying on domestic expertise", Oil Minister Javad Owji said, to uplift production in western and southwestern oil fields, including Azadegan in Khuzestan province which borders Iraq.

Earlier in October, Owji vowed to boost oil production to 3.6 million barrels per day by March 19, 2024.

Iran also signed contracts aimed at developing Masjed Soleyman in Khuzestan, Iran's oldest oil field.

The newly signed projects coincide with the 73rd anniversary of the nationalization of the Iranian oil industry, which was controlled by the United Kingdom.

Iran thrives despite sanctions

Between March 21 and October 22, 2023, Iran's gas exports surpassed $2 billion, reflecting a remarkable 139% increase compared to the corresponding period in the previous year, as reported by the Trade Promotion Organization of Iran (TPOI).

During the same period last year, from March 21 to October 22, 2022, Iran exported gas worth more than $1 billion, according to TPOI.

Meanwhile, the Iranian organization reported that Iran exported 7.55 million tons of gas during the first seven months of the current Iranian calendar year (March 21 to October 22, 2023). This reflects a 115-percent increase in weight compared to the corresponding period last year.

Each ton of Iranian gas, valued at $304 in 2022, experienced an 11-percent growth, reaching $336 in 2023.

It is worth noting that Iran, a significant oil-producing nation, boasts some of the lowest fuel prices globally. Iranians can purchase up to 60 liters (16 gallons) per month with a card, enjoying a subsidized rate of 15,000 rials (approximately 3 US cents) per liter. The country is home to around 33,000 gas stations.