Iran's oil output exceeds 4 mbd
By Nigar Abbasova
Iran, a member of Organization of the Petroleum Exporting countries (OPEC), continues to raise its oil production, which was seriously affected by the recently-lifted international sanctions.
Managing Director of National Iranian Oil Company (NIOC) Ali Kardor told IRNA that the country had already reached the level of 4 million barrels per day.
“We currently face certain pressures regarding the issue of oil production volumes. Nevertheless, we have managed to reach the level of 4 mbd,” he said.
Iran's production has been stagnant at 3.6 million bpd in the past three months, (close to pre-sanctions levels) although Tehran said it wanted to boost production further and produce more than 4 million bpd.
NIOC’s Executive director on international affairs Mohsen Ghamsari, earlier said that the volume of oil export from the country has recently increased by 150,000 barrels a day, while Iranian refineries use the volume of oil ranging from 1.8 to 1.85 million bpd. Therefore, any surplus in production will be directed to export.
Despite the fact that during the Algeria meeting, Iran, along with Libya and Nigeria, is allowed to produce "at maximum levels that make sense" the growing output in Iran raises concerns in oil market, and even strengthens skeptical views on the surprise OPEC deal reached in Algeria.
Some analysts, however, remain skeptical to the ability of Iran to maintain the production at very high levels of oil output.
“Iran cannot produce much more than the present, so around 3.7 million bpd may be the maximum. Even if Iran's output hit 3.8 million bpd it would not be able to sustain that volume as decline rates at its oilfields are about 400,000 bpd each year,” said Fereidun Fesharaki, chairman of FGE (global energy consultancy firm).
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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