News ID: 153507
Published: 0716 GMT June 19, 2016

Oil Ministry to raise crude supply despite low prices

Oil Ministry to raise crude supply despite low prices

Oil Minister Bijan Namdar Zanganeh has reiterated Tehran's determination to increase oil production in the face of a downward spiral in global crude prices.

He underlined Iran's resolve to regain its OPEC market share of pre-sanctions levels in 2011, reported IRNA.

"Some are unhappy about Iran's production increase and cite that as the reason for declining prices. But even if the oil price hits $20 [per barrel], the plan for an output rise to pre-sanctions level will continue."

Iran has been ramping up its oil production and reclaiming market share after the lifting of Western sanctions in January with the implementation of an international agreement that put curbs on its nuclear program.

Tehran had earlier expressed concern over market oversupply and low oil prices but also reiterated its right to regain pre-sanctions market level.

Last week, the minister said Iran's oil production had exceeded 3.8 million barrels per day of which about two million barrels get exported.

Zanganeh added that the exports, which stood at 0.97 million barrels per day in 2013, had almost doubled.



Five million mark


The latest news comes as the former CEO of Italy's energy giant Eni SpA has predicted Iran's oil output would grow significantly.

On June 17, Paolo Scaroni told Bloomberg that Iran's oil production will reach five million barrels per day within three years.

Scaroni also pointed to the need for contracts to further develop Iranian oil industry.

This is while Iran's oil minister has previously said that the country needs an investment of $200 billion over the next five years to implement plans to boost oil and gas production.

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