3 December 2015 - 13:54
  • News Code: 251237
Iran Entitled to Boost Output in Post-Sanction Setting

TEHRAN, Dec. 3 (Shana) - Petroleum Minister Bijan Zangeneh said increase of Iran’s production after lifting the sanctions is Iran’s right and no one has the right to limit us for doing that.

"We don’t expect our colleagues in OPEC to impose sanctions against Iran. It means that they want us to continue sanctions against Iranian nation; and this is not acceptable and not fair too," he told reporters at Intercontinental Hotel.
He said that Iran has no role in the current volatile market, adding that the country has "no responsibility for [involvement in] the current situation which is in the market; situation of level of price that has dropped up to 60 percent in the past one year. Iran has no responsibility in this drop of price. This is responsibility of other OPEC members who have over supplied. It is not a matter of [our] discussion with anyone to limit level of our production."
He said the level of shale oil has not decreased, but it has not increased significantly. "But OPEC members have lost so much money and it doesn’t seem that would be able to change situation in the short term. It needs a long term strategy to take within OPEC."
"We welcome non-OPEC member producers to contribute with us to decrease the production, but it doesn’t mean we can decide subject to non-OPEC members.
Speaking about the OPEC meeting he said, "at the moment we only listen. Still as long as we wouldn’t feel that there is a political will to decrease oil production, we cannot enter into the details of how to do it."
"We (Iran) are capable to increase our production at least 500.000 barrels per-day soon after lifting the sanctions, and vey soon after we can jump to one million barrels; which means close to 3.8 or 3.9 million barrels total output of Iran.
Zangeneh said Iran believes that OPEC must return to the system of quote for the members and to supervise full implementation of the quota.  
He expressed hope that Iran’s production increase happens in early 2016.
"I am here to discuss and exchange views with my colleagues to check whether we can find a solution for this problem or not."
Asked whether the new model of Iranian oil contracts is attractive enough for foreign companies, he said, '"We believe so. Reaction of international oil companies show that they are happy with this framework and we are going ahead with them to sign some MOU firstly and then to give them data and finalize discussions and finally reach agreement."
"With attention to recent IAEA report we expect immediately after lifting sanctions to immediately increase half million barrels around end of December or beginning of January 2016."
"Limiting our level of production is not negotiable. Such demand from Iran to adjust the market is non-expertise and unfair." 
Regarding Iran's further oil and gas plans, Zangeneh said upstream firstly, then green and brown fields, exploration, and then petrochemicals will be developed. 
News Code 251237

Your Comment

You are replying to: .
2 + 0 =