Oil output capacity up 127,000 bpd over past year, minister says
Iranian Oil Minister Mohsen Paknejad said the country’s crude oil production capacity has increased by an average of 127,000 barrels per day (bpd) over the past year.
"I usually avoid giving specific figures, but on average the country’s crude oil production capacity has risen by 127,000 barrels per day over the past year," SHANA quoted Paknejad as saying.
According to the minister, under the quantitative targets set in Iran’s Seventh Development Plan, output should reach about 4.58 million bpd, equivalent to 4.8 million bpd of capacity. "All the planning and investments being made are aimed at achieving this goal," he added.
Paknejad noted that with the launch of new petrochemical projects and processing facilities at the Azadegan field, the country’s production capacity will expand further, adding some 80,000 bpd.
According to OPEC’s monthly report, Iran's oil production has been above 3.3 million barrels per day in the first seven months of the year. The country has maintained its place as OPEC’s third-biggest oil producer after Saudi Arabia and Iraq.
Iran prepared to sustain oil sales
In response to a question about the possible activation of the UN “snapback” mechanism and its impact on Iranian oil sales, the minister said, "There is the necessary expertise within the oil industry to bypass restrictions.”
“For years we have faced limitations on oil sales. This has led to the accumulation of the expertise needed to circumvent these restrictions."
He made the remarks after Britain, France, and Germany on Thursday triggered the so-called snapback mechanism under a 2015 nuclear deal between Iran and world powers, accusing Tehran of violating the 2015 accord. The move could allow for a return of six UN sanctions resolutions that were adopted between 2006 and 2010 in response to Iran’s alleged non-compliance with UN nuclear regulations.
Experts say a re-imposition of the UN sanctions would have almost no impact on Iran’s ability to supply oil to international markets, as they do not directly target Iran’s oil sector.
The Iranian minister added, "The oil industry team can plan ways to sell oil under various constraints. Naturally, snapback could to some extent push conditions toward the need for new measures, but we are not powerless in the face of such restrictions and will do everything we can."