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Iran oil output hits 4.2m bpd: report


Oil Minister Bijan Namdar Zangeneh has said that Iran has seen its oil output hitting 4.2 million barrels per day thanks to the projects implemented for maximizing oil production in recent years, IRNA reported from Tehran on Sunday quoting the local press.

"Taking into account the explorations in recent years, Iran can recover a total of 130 billion barrels of crude and liquid hydrocarbons," the English-language newspaper 'Iran News' quoted Zangeneh as saying.

"Undoubtedly Iran can boost its production to higher levels." He recalled the significant contribution of oil to global economy, saying that rapid economic growth required for creating jobs for the younger generation needs remarkable rise in external trade exchanges. "Therefore, the country needs to develop its oil sector to use the revenues for promotion of other sectors".

Zangeneh said the government owes around 55 percent of its revenues and that the country owes around 75 percent of its hard currency revenues to production and export of crude oil. Oil revenues, he stressed, play an undeniably significant role in promotion of the living standard.

"The oil sector has accounted for hard currency revenues under the Third Five-Year Economic Development Plan (March 2000-2005) and it has provided major help to preservation of inter-generation interests, boosting investment and stabilizing macro-economy," Zangeneh added.

Regarding the conformity of oil revenues maximization and membership of the Organization of Petroleum Exporting Countries (OPEC), the minister said: "Predictions show that demand for oil would continue to rise so that the annual rise in oil demand is predicted to hit 1.5 percent in the next 20 years".

"In the future, the global demand for oil would turn to OPEC and Iran can account for the largest share of supply if investment is made in the country. In that case, Iran does not ignore OPEC policies and objectives," he said.

The minister reiterated that Iran has always been committed to OPEC production quotas.

"Boosting oil production can bring stability to market and serve the interests of Iran and OPEC," Zangeneh said.

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