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CBI allocates $3b to boost crude output
Based on Article 46 of the Law on Removing Barriers to Competitive Production and Enhancing the Country’s Financial System and following the appeal of the Ministry of Oil, the Economic Council ratified a plan to boost crude oil production by 250,000 barrels per day, ISNA reported on Sunday.
Accordingly, Hamid Pourmohammadi, the head of the Plan and Budget Organization (PBO) announced in a notification addressing the Oil Ministry that the CBI will help increase the crude production of the country by 250,000 bpd to hit 2.189 million barrels per day.
According to the PBO head, the CBI is permitted to use various ways to finance the said plan.
The payment of the approved facility is made under the framework of an agreement between the CBI, the PBO and the NIOC.
The newly-appointed CEO of the NIOC said on September 7 that the country is determined to increase its oil production from oilfields in the south, especially those that straddle the Iran-Iraq border.
Hamid Bovard said that he had set up special taskforces in the NIOC to discuss and remove hurdles impeding Iran’s plans to raise output in southern oil and gas fields.
Bovard said his focus as new NIOC chief will be to provide more funding and resources to the National Iranian South Oil Company as the largest oil producing firm in Iran to allow it to increase its production in the coming months.
The official, who also serves as an Iranian deputy oil minister, made the remarks after a tour of southern Iranian oilfields. During the trip, he held meetings with senior managers of Arvandan Oil & Gas Company, a firm which is in charge of oil production from some major oil reserves near Iran’s border with Iraq.
Bovard said in the meeting that oil production from reserves that are shared with Iraq must increase significantly until the end of the current calendar year in March.
That comes amid reports suggesting Iran is ramping up its oil output despite the continued pressure of US sanctions on the country’s petroleum industry since 2019 when Washington toughened its bans on the Islamic Republic.