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Iran's oil production capacity rises to 4.2m bpd

Iranian Oil Minister Bijan Namdar Zanganeh said on Monday that Iran's oil production capacity rose to 4.2 million bpd in Mordad, the fifth month in Iranian calendar, from 3.85 million bpd in the first four months of this year (started on March 21), IRNA reported from Tehran.

Zanganeh told his last press briefing that 350,000 bpd have been added to the country's production capacity despite 300,000-350,000 bpd fall in the annual yield of national oil wells.

He said his ministry has managed to launch a series of efforts and make necessary investments over the past eight years to prevent the fall in the production of oil fields, while adding 350,000 bpd to their daily output.

The Minister said that for the first time ever since the triumph of the 1979 Islamic Revolution Iran has earned more than dlrs 40 billion from oil exports this year.

Average price for each barrel of Iran's crude rose to dlrs 45 in the first four months of this year from dlrs 35.5 in 2004 and dlrs 16.7 in 1979, said Zanganeh, adding that the value of oil derivatives will rise to over dlrs 70 billion this year from dlrs 56 billion last year.

Oil is expected to constitute 50 percent of gross domestic product (GDP) this year, said Zanganeh.

He said that about dlrs 50 billion in investment was made in the oil industry in the 1998-2004 period, adding that dlrs 30 billion out of the sum was spent on development of oil and gas fields, stabilization of production and implementation of projects for recovery and transfer of oil and gas.

More than dlrs 16 billion alone has been invested in production, transfer and distribution of gas in the past seven years and more than 60 percent of the investments for development of the gas sector were met in the form of the buy-back and finance contracts with no obligation for th government, while the remaining portion were obtained from domestic sources, said the minister.

Elsewhere in his remarks, Zanganeh said a dlrs 18 billion investment has been made for development of the petrochemical industry over the past years.

About one billion dollars worth of petrochemical products were produced in 1996, and the figure rose to dlrs five billion in 2005 and dlrs 3.3 billion in 2004 thanks to the investment made for the purpose, added the minister.

The worth of the petrochemical products will rise to over nine billion dollars a year once the relevant projects, which have thus far shown a 80 percent progress, come on stream, said Zanganeh.

He said Iran's oil production will rise by more than one million barrels once the buy-back projects come on stream.

Zanganeh predicted an increase in national gas output to 450 million cubic meters a day, a rise in gas condensates and NGLE to 685,000 barrels, an increase in the liquefied gas to 700,000 tons and in the ethane gases to about six million tons.

He said the products are expected to earn the country dlrs 18 billion a year.

Zanganeh said 335,000 barrels of oil, 163,000 barrels of gas liquids, gas condensates and NGL and 141 million cubic meters of natural gas will be produced per day once projects for development of the oil and gas fields using domestic sources of National Iranian Oil Company are commissioned.

He said total natural gas refining and dehumidization capacity climbed to 383 million cubic meters per day in 2004 from 129 million cubic meters a day in 1996.

He added that furthermore, the share of gas in the country's energy basket rose to 60 percent last year from 38 percent in 1996.

The minister referred to South Pars and said the five phases of the field has been earning the country dlrs 5.870 billion a year since 2001 when they became operational.

Concluding his remarks, Zanganeh said that the number of people employed in the oil industry stood at 90,000 until the end of 2004.

... Payvand News - 8/1/05 ... --

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