Iran ‘lacking capital, technology to boost oil output’
DUBAI, January 11, 2017
While Iran has delivered on its plans to boost oil production in the immediate term, it has not been able to access the capital and technology it desperately needs to boost production beyond the short term, a report said.
Output has already reached 3.7 million barrels of oil per day (mbpd) production in October 2016, surpassing pre-sanctions levels of 3.6 mbpd, added the report titled “Iran’s impressive return: more to follow?” in the December issue of Monthly Energy Commentary from Arab Petroleum Investments Corporation (Apicorp).
The country’s exports have more than doubled to 2.2 mbpd compared with a year ago, the report highlighted.
Iran has also regained its market share in Europe. In Asia, where the bulk of Iran’s one million mbpd exports headed during sanctions, relations are getting even stronger and exports have surged to above 1.7 mbpd.
While Iran’s return has been impressive, favourable terms under the International Petroleum Contract (IPC), and the country’s ability to assure a stable political landscape will both be necessary for further capacity growth, said the Apicorp report. – TradeArabia News Service