Iran pumps a lot of oil as Saudi’s call for opec output cuts
Iran boosted oil output at 3 western fields quicker than it expected as rival opec producer saudi arabia called for a collective output cut later this month to help rebalance the market.
Output at the fields west of the Karoun river, close to Iran’s border with iraq, rose to concerning 250,000 bpd from 65,000 bpd in 2013, the Oil Ministry’s news service Shana according Sunday, citing President Hassan Rouhani at a ceremony to formally open the project'>project. iran had expected to reach that output target by the tip of the year, Mohsen Ghamsari, director for international affairs at the National Iranian Oil Co., said in september.
Saudi Arabia’s Energy Minister Khalid Al-Falih said opec should conform to implement a proposed cut in crude production for opec countries, Saudi press agency according Sunday. opec members can meet on nov. 30 to discuss a plan to limit the group’s output to a variety of 32.5 MMbopd to 33 MMbopd, compared with 33.64 MMbopd in october. that target has become harder to reach as many members boosted output.
OPEC according last week that iran raised its monthly output by the most since international sanctions were lifted in january. The islamic Republic negotiated an exemption from the required production cuts at a meeting in algiers in september, to compensate for the production capacity it lost once international sanctions targeted its oil industry. iran has nearly recovered that capability, and plans to any increase output with the help of foreign investment.
“Oil production west of Karoun should reach one million barrels per day,” Rouhani said, referring to the North Azadegan, Yadavaran and Yaran fields. “This may be a realistic goal, and that we want investment and technology.”
Iran has approved a new oil contract model to lure foreign investors, though the details haven't been created public. France’s Total sa reached an initial agreement to develop a natural gas field in iran last week, becoming the primary international oil company to sign a deal below the new energy contracts.