Iran's crude oil production reached 3 million and 715 thousand barrels per day in October 2023, which is an increase of 285 thousand barrels compared to September 2022, representing an 8.3 percent growth. Additionally, this figure has risen by 55 thousand barrels per day compared to October 2022. This significant growth has occurred amidst ongoing sanctions, financial restrictions, and security tensions.
Effective Measures to Increase Production
Key measures during this period include activating existing capacities, revitalizing low-yield wells, and developing shared fields. An emergency plan to increase crude oil production by 250 thousand barrels has been defined with a budget of 3 billion dollars, of which 70 thousand barrels per day of the target has been achieved so far. The financing of this plan includes 80 percent from the National Development Fund and 20 percent from the internal resources of the National Iranian Oil Company.
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Field Development Contracts and Infrastructure Sector
Contracts for the development of the Azadegan, Azar, Changuleh, and Band-e-Karkheh fields have been signed with a total investment of approximately 13 billion euros. In the infrastructure sector, private sector contracts have been established to create 315 thousand barrels per day of new processing capacity, bringing the total processing capacity allocated to this sector to 430 thousand barrels per day. Additionally, 129 drilling rigs are active in the country, and a contract for the provision of services for 20 new rigs worth about 1 billion dollars has been signed for drilling 270 wells.
The board of trustees of the Ministry of Oil has emphasized the continuation of production and development programs, strengthening oil trading and sales policies, rehabilitating damaged areas, collecting flare gases, and accelerating projects ready for inauguration. This trend demonstrates a serious determination to increase oil production and transform the country's capacities into opportunities for development.
The continuation of this path depends on coordination among production, development, processing, and sales, sustainable financing, and leveraging the capabilities of domestic specialists. These factors can convert the created capacity into sustainable production and reliable income for the country's economy.
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