Iran’s oil output can easily reach 6.5 million barrels per day (bpd) when US sanctions are lifted, Iranian Oil Minister Bijan Zanganeh claimed on Monday, according to the Ministry’s SHANA website.
Zanganeh also said an increase in Iranian oil output would boost the country’s political power and is not just an economic objective. Zanganeh also called on any future government to invest the income from oil exports in the economy.
However, Iran’s oil industry is suffering from lack of investments for years and would need tens of billions of dollars before it can boost production to above 4 million bpd. Iran also failed to upgrade the oil sector when prices were above $100 per barrel a decade ago.
The United States and Iran are negotiating for the revival of the 2015 nuclear sanctions that presupposes lifting of US sanctions imposed by the former administration.
US President Donald Trump ditched Iran’s 2015 nuclear deal with six powers three years ago and reimposed sanctions that have crippled Iran’s oil-reliant economy.
Iranian authorities say sanctions have only delayed the moment when it will produce the oil in its vast reserves, which the world will eventually need.
Any increase in Iranian supply would be on top of extra barrels already expected from the Organization of the Petroleum Exporting Countries and allies, or OPEC+, which plans to bring back about 2 million bpd of output through July.
Source » iranintl