Iran’s oil minister announces neutralization of sanctions on gas condensate exports
Date
7/24/2024 9:59:15 AM
(MENAFN) Iranian Oil Minister Javad Oji announced that the sanctions on the export of gas condensate have been effectively neutralized over the past three years since President Raisi’s government took office. Speaking at a cabinet meeting on Wednesday, Oji highlighted that despite the removal of obstacles for gas condensate exports, Iran no longer needs to export these condensates. Instead, they are now used as feedstock for the country's petrochemical complexes due to increased refining capacity.
“Now, due to the increase in refining capacity in petrochemical complexes, refineries, and the completion of 37 small-scale oil refineries, Iran no longer needs to export gas condensates and turns all these condensates into added value inside the country,” Oji stated. He added that at the start of the current administration, Iran had over 87 million barrels of gas condensate and 20 million barrels of heavy and extra-heavy crude oil stored offshore. Managing these reserves was crucial to avoid challenges during the cold season and to reduce the maintenance costs of these storages, which amounted to USD465 million annually.
Oji also noted a significant increase in the country’s oil production, which has risen from 2.2 million barrels per day (bpd) at the beginning of the 13th government to 3.6 million bpd. He emphasized that every 100,000 bpd increase in oil production generates more than USD2.7 billion in annual revenue for the country.
The minister attributed the completion of several semi-finished projects over the last three years to the diligent efforts of oil industry employees. Notable projects include the second phase of the Abadan refinery and phases 11 and 14 of the South Pars gas field. Additionally, Oji reported that 16 million cubic meters of associated gases have been collected over the past three years, with plans to increase this figure to 30 million cubic meters by the end of the current Iranian calendar year (late March 2025).
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