Paknejad: Oil production capacity to increase by 250,000 bpd
Iran’s oil minister announced his plans on Saturday to increase the country’s oil production capacity by approximately 250,000 barrels per day (bpd).
Discussing plans by the current administration’s Oil Ministry to boost output, Mohsen Paknejad said, “Based on a plan submitted to and approved by the Economic Council of Iran, it was decided to raise production capacity by about 250,000 barrels per day,” Shana reported.
He went on to say that funding for the initiative is expected to be provided through the National Development Fund of Iran (NDFI), and that we are pursuing the implementation of the plan.
The Economic Council of Iran, relying on Article 12 of the Law on Removing Barriers to Competitive Production and improving the country’s financial system, approved an emergency plan to raise crude oil production by 250,000 barrels per day during its session on August 12, 2024, following a proposal by the Oil Ministry.
The oil minister also on Friday announced that the country’s daily diesel production had increased by 10-12 million liters and assured the continuation of efforts to meet the fuel needs of power plants amid approaching colder weather.
Speaking at a meeting on the energy crisis management chaired by President Masoud Pezeshkian and attended by top officials, including ministers and provincial governors via videoconference, Paknejad presented a report on his ministry’s recent fuel supply status.
Paknejad noted that gas and diesel deliveries to power plants have been satisfactory in the past week (ended Friday), with diesel reserves at power plants also showing a rise.
“With colder temperatures expected next week, coordinated measures between the Ministries of Oil and Energy will help us overcome the upcoming challenges,” he said.
The minister emphasized the effectiveness of implementing strategic closures to reduce energy consumption, adding that diesel storage levels have remained stable, with no significant decline in reserves at power plants.
He further stated that diesel supply operations are ongoing, with substantial efforts to ensure uninterrupted provision.
“Daily diesel production has seen a significant increase of 10-12 million liters, and these measures will continue until we overcome the current period,” Paknejad said.