Over the past two years, Iran's oil industry has shown a positive trend in enhancing operational capacity and reclaiming its position amid intensified sanctions, credit constraints, and security tensions. The country's daily crude oil production capacity has increased from 3 million and 430 thousand barrels in September 2024 to 3 million and 715 thousand barrels in October 2026. This dynamism reflects the return of 285 thousand barrels of new capacity, equivalent to an 8.3% operational leap.
Injection of 3 Billion Dollars in Liquidity and Focus on Low-Performing Wells
The strategic axis of executive actions during this period has been the focus on optimizing surface facilities and reviving idle assets. Activating existing reserves, restoring low-performing wells, and depending on production circuits, accelerating the completion of shared fields in West Karun, and reorganizing processing arteries and pipelines are fundamental pillars of this achievement.
In this operational framework, an emergency plan for a 250 thousand barrel increase in crude oil production was launched with a 3 billion dollar investment package; a strategic project that has so far stabilized a yield of 70 thousand barrels per day from its goals. The financial structure of this project has been established with an 80% participation from the National Development Fund and a 20% share from the internal resources of the National Iranian Oil Company.
13 Billion Euro Investment in West Karun Fields
The upstream oil sector has witnessed the approval of large development packages worth approximately 13 billion euros in renowned and shared fields including Azadegan, Azar, Changuleh, and Band-e-Karkheh. Alongside these upstream agreements, a strategic shift towards transferring processing facilities to the private sector has accelerated; so that with the signing of new contracts amounting to 315 thousand barrels per day, the ceiling for outsourced processing capacity to the private sector has reached a record of 430 thousand barrels per day.
In the drilling front, as a production driver, 129 drilling rigs are operating around the clock across the country, and with the signing of contracts for the supply of 20 new rigs worth one billion dollars, operations to drill 270 new wells are underway.
The continuity and sustainability of this production leap depend on maintaining balance among the production chain, processing, renewing transmission lines, and opening export sales channels. The continuous link between developmental financial institutions such as the National Development Fund and domestic engineering and contracting bodies will ensure the achievement of the goals of the seventh development plan.
Ultimately, recording a capacity of 3.715 million barrels on the international economic scoreboard has implications beyond budgetary indicators. Iran is redefining its position as the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC) by gradually reclaiming its historical quota.
