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Iran Nears Pre-Sanction Levels, Starts Pumping Oil At 3 New Fields

Three new oilfields in Iran were put in production mode this weekend at an official ceremony, adding more than 220,000 bpd to the country’s total output.

The fields are Yadavaran, North Azadegan, and North Yaran—three of the five fields that Iran shares with Iraq. The launch of North Yaran was reported last week, with initial production seen at 30,000 bpd. North Azadegan will yield 75,000 bpd, and Yadavaran should produce 115,000 bpd.

At the ceremony, President Hassan Rouhani was quoted as saying that “Oil production west of Karoun must reach one million barrels per day. This is a realistic goal, and we need investment and technology.”

The latest production figures for October for Iran are 4 million bpd, with exports at 2.4 million bpd. The country, which insisted—and succeeded—that it be exempted from an OPEC-wide production cut, has made no secret of its intentions to ramp up its oil production as quickly as possible.

To this end, Tehran devised a whole new petroleum contract in a bid to lure in foreign energy companies with the know-how and experience to help it in its plans. The first international major to sign on was France’s Total, which will develop the giant South Pars offshore field, together with Chinese CNPC.

Related: Is GE Looking To Exit Oilfield Services?

Meanwhile, U.S. president-elect Donald Trump has during his campaign slammed the decision that put an end to the harshest of the sanctions against Iran, saying that he would have negotiated longer sanctions. At the same time, however, Reuters reminds us, Trump has been critical of the sanctions as something that prevents U.S. companies from doing business with Iran.

According to experts, pulling out of the international deal could create tension between Washington and its allies in Europe, for whom Iran’s return on the international energy scene was welcome news, as the continent seeks to reduce its energy dependence on Russia.

By Irina Slav for Oilprice.com

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