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Iran Official: 3.8m-4m bpd of oil to be produced from Caspian Sea


Deputy Oil Minister for Caspian Oil and Gas Affairs Hamdollah Mohammadnejad on Saturday declared that 3.8 million to four million barrels of oil per day is to be produced from the Caspian Sea reserves by 2010, IRNA reporeted from Tehran.

Mohammadnejad said at a seminar on Caspian oil resources that currently daily output from the Caspian Sea stands at 1.3 million barrels a day.

He highlighted the key role of North-South Corridor in the transfer of the Caspian energy resources to target markets, calling for policies to attract foreign investment in Caspian Sea and the launching of the North-South Corridor to promote economic boom and transfer energy reserves from the region.

Referring to reasons for oil price fluctuations over the past five years, Mohammadnejad said regional crises such as the recent crisis in Iraq have been among important reasons for an increase in risk of investment in projects for transfer of crude oil from the Caspian Sea.

As for the cost for production of crude oil in the Caspian Sea, Mohammadnejad said excluding Tangiz field in Kazakhstan, where the production cost stands between about dlrs two to dlrs 2.5 per barrel, the cost is five dollars or more in other regions in the zone.

He referred to 1.5 to two percent increase in oil demand by the year 2020 and said that increase in production by the Caspian states, particularly Russia, would push up supply, surpassing the demand. He said the littoral states should hence try to prevent price fall.

He said Iran plans to produce 1.5 million barrels of oil in Neka port as is testified by successful implementation of the second phase of a project for transfer and production of oil in the port. He added that Iran will soon succeed to produce 120,000 barrels of crude oil from Neka port a day.

The Caspian sea oil producers should cooperate within framework of a non-OPEC group and secure investment and adopt plans for development of production and transfer of the products from the region. He predicted that 3.5 million barrels of oil would be transfer from the Caspian sea in light of full implementation of related projects.

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