In Mehr 1405, Iran's oil industry successfully increased its production capacity to 3 million and 715 thousand barrels per day, which represents a significant growth compared to the capacity of 3 million and 430 thousand barrels per day in Shahrivar 1403.
Factors Influencing Production Capacity Increase
This achievement has been made under conditions where sanctions and credit constraints continue to pressure Iran's oil industry. The main focus of this increase has been the optimization of surface facilities, revitalization of low-yield wells, and acceleration in the completion of shared fields in West Karun. The emergency plan for a 250 thousand barrel increase, implemented with a $3 billion investment, is financed 80% by the National Development Fund and 20% by the internal resources of the National Iranian Oil Company. So far, 70 thousand barrels per day of the targets of this plan have been stabilized.
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Development Projects and Challenges Ahead
In the upstream sector, development packages worth 13 billion euros have been implemented in the Azadegan, Azar, Changuleh, and Band-e Karkheh fields. Additionally, the transfer of processing facilities to the private sector with contracts for 315 thousand barrels has increased the outsourced processing capacity to 430 thousand barrels per day. Currently, 129 drilling rigs are active, and with a $1 billion contract for 20 new rigs, drilling of 270 wells is underway.
However, Iran's oil industry faces serious challenges. The natural decline of reservoirs by 8 to 10 percent annually necessitates the creation of approximately 300 thousand barrels of compensatory capacity each year and the implementation of enhanced oil recovery (EOR/IOR) methods. Without these measures, the sustainability of the record 3.7 million barrels of oil production will not be maintained.
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