Iran’s Economic Council instructs oil ministry to enhance oil output by 250,000 bpd
Date
9/17/2024 8:17:19 AM
(MENAFN) Iran’s Economic Council, in collaboration with the Planning and Budget Organization (BPO), has instructed the Oil Ministry to commence a significant plan aimed at increasing oil production across 34 oil fields. This ambitious initiative seeks to raise Iran's daily oil output by 250,000 barrels, as reported by a news agency. The plan's implementation will be supported financially by the Central Bank of Iran (CBI), which has committed to providing the National Iranian Oil Company (NIOC) with USD3 billion in facilities. This financial backing was approved during a mid-August meeting of the Economic Council, underscoring the government's commitment to bolstering the country’s oil production capabilities.
During the meeting, Mohammadreza Aref, the first vice-president of the current administration, highlighted the vital role of the Economic Council in the country's decision-making processes. He emphasized that the council is responsible for harmonizing decisions across various ministries and governmental entities, ensuring that financial resources are efficiently allocated toward major developmental and infrastructural projects. Aref stressed the importance of avoiding the creation of parallel councils and committees, which could dilute the government’s ability to effectively implement the president’s strategies and programs.
In recent years, Iran has been steadily increasing its oil production and exports, despite ongoing U.S. sanctions. According to a survey conducted in August, Iran's oil production in July reached an impressive 3.22 million barrels per day (bpd), marking the highest level since the U.S. exited the nuclear deal with Iran in 2018 and reinstated sanctions. The trend of increasing production continued into August, with the latest report from the Organization of the Petroleum Exporting Countries (OPEC) indicating that Iran produced 3.277 million bpd, reflecting a slight increase of 4,000 bpd from the previous month.
Further highlighting this trend, the average crude oil output of the Islamic Republic in the second quarter of 2024 was reported at 3.238 million bpd, representing a significant increase of 59,000 bpd compared to the first quarter of the year. OPEC's report also placed Iran’s average crude output for 2022 at 2.554 million bpd, with an increase to 2.859 million bpd in 2023.
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