Iran greenlights plan to boost oil production amid sanctions challenges
Date
5/27/2024 2:20:00 AM
(MENAFN) The Iranian Economic Council has recently given the green light to a proposal aimed at significantly boosting the country's oil production to an average of 4 million barrels per day in the coming period. This decision, reported by an Iranian news agency on Sunday, comes amid ongoing challenges faced by Iran in maintaining its oil facilities due to the impact of Western sanctions. These sanctions have severely affected the country's oil production capabilities, making it essential for Iran to adopt strategic measures to enhance its output.
As per the report, the Economic Council has approved a plan to increase oil production from the current average of 3.6 million barrels per day to 4 million barrels per day. This ambitious project will be executed by the National Oil Company, which will receive funding amounting to USD3 billion. This approval represents a critical step in Iran's efforts to bolster its oil sector amidst persistent economic challenges.
Historical data from OPEC illustrate the volatility of Iran's oil production over recent years. In the first quarter of 2018, Iran's oil production peaked at 3.85 million barrels per day. However, this figure plummeted to an average of two million barrels per day by the end of the same year due to the re-imposition of US sanctions. Despite these difficulties, recent OPEC data shows that Iran's oil production had climbed back to approximately 3.2 million barrels per day by April, nearly reaching the highest levels since the sanctions were reintroduced in May 2018.
The plan approved by the Iranian Economic Council is thus viewed as a vital initiative to not only stabilize but also significantly enhance Iran's oil production capacity. By targeting an increase to 4 million barrels per day, Iran aims to counteract the negative impacts of the sanctions and establish a more resilient and sustainable oil industry for the future.
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