Iran vows 500k bpd rise in oil output by January

Iran says it can increase its oil production by 500,000 barrels per day (bpd) within a week immediately after the removal of sanctions against the country.

Iran’s Oil Minister Bijan Zangeneh has said the country’s crude production capacity can further increase by above 1 million bpd within a month after all sanctions are lifted – what he said is expected to take place by the end of September.

“Some of the most effective sanctions [against Iran] with regards to the oil industry were those that targeted aspects such as sales, volumes, shipment, insurance and the transfer of money,” Zangeneh said in an interview broadcast live on Iran’s state TV on Saturday night.

“If those issues are resolved, Iran will regain the market share that it has lost which amounts to above one million barrels per day.”

The Iranian minister added that Tehran has informed OPEC about its determination to regain its lost market share, stressing that the country will require “nobody’s authorization to retrieve its rights”.

Elsewhere in his remarks, Zangeneh rejected as “unfair” criticisms that Iran is to blame for the plunge in the international prices of oil.

“The issue of oil prices is very complicated,” he said. “There is a strong political will [beyond Iran’s borders] that does not want the prices to rise.”

Zangeneh said he anticipates a further fall in oil prices if OPEC fails to make room for incoming Iranian oil volumes.

He warned that the countries which have a high production capacity will suffer from this.

Zangeneh said Iran has already started a marketing campaign for its projected extra crude production supplies.

“There are some who say it will take one and a half years for Iran to increase its oil production,” said Zangeneh. “I recommend they watch how this [the rapid rise in Iran’s oil output] will take place”.