Iran To Boost Oil Production Immediately After Sanctions Are Lifted

Iran To Boost Oil Production Immediately After Sanctions Are Lifted

$BP, $RDS-A, $USO, $OIL

Iran can/will likely boost Crude Oil production in 1 week after international sanctions are lifted, and OPEC’s refusal to accommodate Iran in export markets will result in significantly lower Crude Oil prices, Oil Minister Bijan Namdar Zanganeh said.

Production can increase by 500,000 BpD in a week after sanctions end and by 1-M BPD in 1 month, Mr. Zanganeh in an interview with state TV. Sanctions against Iran’s Oil industry should be lifted by late November, he said, according to the Shana news agency.

Crude Oil producers such as BP Plc (NYSE:BP) and Royal Dutch Shell Plc (NYSE:RDS-A) have expressed interest in developing Iran’s reserves, the world’s 4th-biggest, once sanctions are lifted.

Iran is organizing a conference in London in December to discuss new Crude Oil contract models with international companies. Iran had the 2nd-biggest output in OPEC before US-led sanctions banned the purchase, transport, finance and insuring of its Crude Oil began July 2012.

Under the nuclear accord Iran and the 5P+1 UN world powers reached in Vienna last month, the they agreed to end efforts to limit Iran’s Crude Oil sales. The European Union said it would end the bloc’s embargo on imports once Iran complies with obligations to scale back its nuclear program.

Iran is OPEC’s 3rd-largest producer, it produced an average of 2.85-M BPD in July compared with 3.6-M at the end of Y 2011, according to the data.

Iranian Oil exports declined to 1.4-M BPD on average last year due to sanctions, the US Energy Information Administration (EIA) said on 24 June. Sales averaged about 2.6-M BPD in Y 2011 before sanctions, according to the EIA.

Stay tuned…

HeffX-LTN

Paul Ebeling

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