12/04/2022 by Richard
According to a top official in Iran, crude oil production there has returned to levels not seen since before the US withdrew from its nuclear deal with the country and re-imposed sanctions.
The state news agency IRNA quotes the National Iranian Oil Company’s (NIOC) CEO, Mohsen Khojastehmehr, as saying:
“Oil production has reached pre-sanctions figures, despite economic pressures…We are now in a position to double our exports. In terms of energy security, the Islamic Republic is capable of achieving stability on the international scene.”
The development is likely linked to ongoing negotiations to revive the 2015 nuclear deal, which would most likely see Iran scale down its nuclear programme in return for relief from sanctions. This would enable it to again be a prominent oil exporter and help offset some of the shortfall caused by sanctions against Russia.
Some US-based producers – such as ExxonMobil and Chevron, makers of the Mobil and Texaco lubricant ranges – have also indicated production increases for their US shale operations, but others have been cautious about growing production.
Iran produced about 3.8 million barrels per day (bpd) before sanctions were re-imposed in 2018, but this soon dropped as the country struggled to find buyers for its oil exports due to the sanctions. An OPEC monthly report estimated Iran’s oil production to be 2.54 million bpd in February this year.
According to Khojastehmehr, the government of President Ebrahim Raisi earmarked some $500 million to get production back to 2018 levels within half a year.
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