Iran’s return to market not to reduce oil prices

TEHRAN, Oct. 31 (MNA) – Stating that Iran’s plan to increase oil production by 500 bpd will be officially announced at OPEC’s upcoming meeting, oil minister said Iran’s return to the market will not reduce prices.

On the latest status of increasing Iran’s crude production for the post-sanction era, Bijan Zanganeh said, “by taking necessary measures, one million barrels will be added to daily oil production by the end of the current Iranian year.”

Zanganeh referred to the efforts of all oil industry staff to enhance oil productions by rapidly implementing several programs including maintenance of wells as well as preparation of pipelines and pumping stations; “international affairs of the National Iranian Oil Company (NIOC) is carrying out marketing procedures to sell oil during the post-sanction era while we have made the required planning to store oil as well,” he asserted.

The member of the cabinet deemed the Asian Market as Iran’s first priority to sell oil and added: “failure to sell oil to Asian markets does not preclude the possibility of making deals with other markets including European and South African markets.”

Recalling that Iran’s plan to increase oil production will be officially announced at the next meeting of OPEC, Zanganeh noted, “we will urge them to respect the daily production ceiling of 30 million barrels while Iran will not be waiting for any country to increase their production.”

“Iran is determined to increase production by 500 thousand barrels per day which will definitely take place by the removal of sanctions,” he emphasized.

Zanaganeh further reiterated that the change in Iran’s production and export will not have a decisive impact on the price of crude oil in world markets; “the upcoming increase in Iran’s oil production has already been stipulated and anticipated in the world markets and the market has considered the issue in calculating future prices,” he underlined.

“The fact that Iran’s return to the market might lower the prices by tens of cents or a dollar will not prevent us from increasing the country’s production,” the official maintained.

The minister further deemed buying of refineries as a method to establish demand security adding, “we need to use the experience of professional marketers in the world in order to sail our petroleum products.”

Stressing the need to form a joint venture with foreign companies for marketing purposes, Zanganeh stated: “West Karun oil field is Iran’s priority for the development of the country’s oil industry.”

“The development plan of the oil fields in West Karun will be followed immediately after the lifting of sanctions and by supplying the necessary funding and technology, we can expect to have a daily production of 700 thousand barrels in the field,” the official concluded.




News Code 111511


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