Iran is planning several projects to expand its oil production and export capabilities, reports said, highlighting a new oil terminal to export one million barrels per day (bpd), and a $1.7 billion development of South Pars Gas Field.

The new terminal would be built at Jask Port, on the coast of the Gulf of Oman on the south coasts of Iran, Seyyed Piruz Mousavi, the head of the Iranian Oil Terminals Company (IOTC), was quoted as saying by Irna, Iran’s official news agency, which cited Shana.

“In the event of any type of problem in exporting crude oil from the Kharg terminal, the new one can provide backup for exports,” Mousavi said.

The new terminal would be connected to the Caspian Sea port of Neka using a one million barrel a day pipeline, the report added.

According to Mousavi the terminal would have a storage capacity of 20 million barrels and could cost up $2.2 billion to build.

South Pars development

Meanwhile, Pars Oil and Gas Company (POGC) has allocated more than $1.7 billion for the development of South Pars Gas Field in the last nine months, according to a report from Iran Daily, which cited Shana.

"Some $10 billion is also needed for completion of the development projects," POGC managing director Ali-Akbar Shabanpur was quoted as saying.

"Total eight-month production from the phases exceeded 83 billion cu m and this figure is expected to rise to 130 billion cu m by mid-March," he added.

Deal with Lukoil

In yet another move, Iran has signed a $6 million deal with Russia’s Lukoil over two exploration projects in the country’s south-western oil-rich Khouzestan province, according to The Iran Project.

Lukoil will look for hydrocarbon reserves in Dasht-e Abadan and the northern parts of the Persian Gulf, Hormoz Qalavand, the director for exploration affairs of the National Iranian Oil Company (NIOC), was quoted as saying.

Lukoil has already started the project work, Qalavand added.