(MENAFN) Despite the US sanctions aimed at curtailing Iran's oil exports and associated revenue, the Iranian Oil, Gas, and Petrochemical Products Exporters' Union has reported a noteworthy uptick in Iran's oil production. According to the union's spokesman, Hamid Hosseini, Iran's daily oil production has surged to 3.4 million barrels, a significant increase from its previous output of approximately 2.9 million barrels per day.
The substantial boost in oil production can be attributed to the reopening of previously closed oil wells that have now been reintegrated into the production cycle. As a result, Iran has the potential to further elevate its oil production to 3.8 million barrels per day. Hosseini explained that to achieve the goal of increasing oil exports from 3.8 million to 4.2 million barrels per day as outlined in the 7th National Development Plan, an average investment of USD25,000 per barrel would be required. However, the advantage of having these previously operational oil wells back in production allows for a more cost-effective and efficient route to reach the 3.8 million-barrel target.
Furthermore, Hosseini highlighted that the country's oil production has experienced a notable upswing with an additional 40,000 barrels per day generated from the Sepehr and Jafir oilfields. This development is poised to contribute to Iran's economic growth.
In September, Iran reported a crude oil production of 3.058 million barrels per day, marking an increase of 15,000 barrels per day compared to the preceding month, as stated in OPEC's latest monthly report. Secondary sources cited by OPEC indicated that Iran's crude oil production in August was 3.043 million barrels per day.
The increase in Iran's crude output in the third quarter of 2023, which averaged 2.990 million barrels per day, demonstrates a significant rise of 292,000 barrels per day compared to the second quarter of the year. This upward trajectory in oil production contrasts with the average Iranian crude output of 2.554 million barrels per day in 2022 and 2.392 million barrels per day in 2021, as reported in the OPEC document. The notable increase in oil production comes at a time when Iran grapples with international sanctions that have aimed to limit its oil exports and economic activity.
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