1 May 2007 - 12:23
  • News Code: 103598
Iran Oil Output to Exceed 5m bpd by 2015

TEHRAN – National Oil Iranian Co. (NIOC) managing director predicted that the country would produce 5.316 million barrels of oil and 1.509 billion cubic of gas per day by the end of the Fifth Five-Year Socioeconomic Development Plan, 2015.

Gholam-Hossein Nozari added domestic oil production in the previous Iranian calendar year (March 21, 2006 to March 20, 2007) stood at 4.057 barrels per day (bpd) on average, vowing that the figure would soar to 4.379 million barrels and the gas output would rise to 719 million cubic meters daily in 2009.

“Oil and gas will be the main sources of energy in the world in the decades to come,” underlined the NIOC chief, predicting that gas consumption would outpace the coal use in 2010 and oil consumption would increase to 120 million bpd from 80 million bpd.

“The figures reveal that the future of the world depends on energy supply and security,” concluded Nozari.

The statistics showed that 62 percent of the world’s current production of 1.2 trillion barrels of oil belonged to the Middle East, with five countries of Iran, Saudi Arabia, Iraq, Kuwait, and the United Arab Emirates (UAE) accounting for 60 percent of the figure, he said.

“The world is now producing 170 trillion cubic meters of gas, whose 40 percent is yielded by the Middle East, mainly by Iran and Qatar,” boasted the ranking official.

The statistical figures indicated that many a exporting states would turn to oil importers in the upcoming decades and the Middle East particularly Iran would play a key role in meeting the global energy need, added the NIOC managing director.

Iran holds 13.5 percent of reserves, 5.6 percent of output, and 6 percent of oil and gas exports of the world,” said Nozari, adding the National Oil Iranian Company stood third among top 20 international companies and ranked second among national companies.

Shifting to the attraction of investment in the past year, he said totally 8 billion dollars other than the contracts’ sums had been absorbed in the oil and gas sectors, forecasting that the figure would surpass 137 billion dollars in 2015.

Deputy minister of petroleum for planning affairs said the oil industry would need a 471 billion dollar investment during the 20-year Outlook Plan and the investment would generate over two trillion dollars.

Mohammad-Reza Moqaddam added, “According to the figure predicted in the Outlook Plan for the total exports of oil products, the country will earn 1.389 trillion dollars and some 700 billion dollars will be added to the revenue when all gas contracts are put into practice, bringing the earning to more than two trillion dollars.

“Based on prediction, the country will collect a 872 billion dollar revenue from crude oil exports, 298 billion dollars from exports of gas condensates, 120 billion dollars from gasoline exports, 52 billion dollars from oil and gas exports, 68 billion dollars from kerosene exports, 45 billion dollars from furnace oil exports, and 23 billion dollars from gas liquids – totally 1.389 trillion dollars – by 2024.”

Underlining the necessity to invest in the upstream industries, the deputy minister said, “To invest in the development plans of oil reserves, totally 93 billion dollars is required.

“According to the forecasts, 40 billion dollars of the figure will be provided through buyback contracts, 9 billion dollars through finance, and 44 billion dollars through cash resources,” explained the official.

He said 17 billion dollars should be invested in the downstream and oil refining sectors.

“Out of the figure, 14.993 billion dollars will go for the refining industry during the 20-year Outlook Plan excluding the costs of establishment of Hormuz and Abadan oil and gas refineries, whose construction has started,” Moqaddam added.

Totally 111 billion dollars had been predicted for investment in the downstream and upstream industries by 2024, said the deputy minister, adding, “The current capacity of domestic refineries amounts to 2.3 million barrels and the volume will increase to 2.8 million barrels after the refineries of gas condensates and petrochemicals come on stream.”

Minister of Petroleum Seyed Kazem Vaziri-Hamaneh said Iran invested 14.3 billion dollars in the oil industry from March 21, 2006 to March 20, 2007.

The minister added the figure showed an about one million dollar increase when compared to that of its preceding year.

The country’s oil production capacity increased by 53 thousand barrels per day in the previous year, said the official, adding, “In defiance of aged oil reserves and normal drop in output, estimated at some 250 thousand barrels per annum, the industry witnessed a daily increase of 53 thousand barrels – 32 barrels more than the volume the parliament targeted – revealing the oil industrialists’ unsparing efforts.”

News Code 103598

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