Minister of Petroleum Bijan Zangeneh tours an international oil, gas and petrochemical exhibition in Tehran, May 7, 2016. ©Shana
Minister of Petroleum Bijan Zangeneh says Iran
’s daily production of oil and condensate has risen to 2.4 million barrels.
Since the lifting of sanctions in January under a nuclear agreement, Iran has been ramping out oil production to claw back lost market share.
“During sanctions, exports of oil and gas condensates combined stood at 1.35 million barrels per day; those exports have now risen to 2.4 million barrels,” Zangeneh told the opening of an international oil and gas exhibition in Tehran Saturday.
“The policy of the establishment is to increase production and exports of oil to reclaim Iran’s lost market share; and nothing can prevent us” from this goal, he added.
Zangeneh made the remarks as he toured the 21st Iran International Oil, Gas, Refining and Petrochemical Exhibition in Tehran.
The exhibition is the first oil show for Iran after the removal of sanctions, with nearly 2,000 companies from 38 countries showcasing their latest achievements.
Iran is wooing international investors to its massive energy sector after years of underdevelopment because of the sanctions.
Zangeneh said, “For investment in oil, we have to use not only domestic resources but also foreign resources and the oil contracts framework has been written on this basis.”
Officials say the new oil investment framework known as Iran Petroleum Contract (IPC) will be unveiled by July.
According to Deputy Petroleum Minister Rokneddin Javadi, foreign companies will be invited in July to bid for the new contracts.
In November, Tehran hosted a conference attended by some 135 companies including BP, Total, Italy’s Eni and Spain’s Repsol to present the new contract to prospective investors before its formal launch.
The IPC has come under criticism from some people who say the contract could pave the way for a cheap sellout of Iran’s resources and putting them under the control of foreigners for many years.
The new formula would end a buy-back system dating back more than 20 years under which foreign firms have been banned from booking reserves or taking equity stakes in Iranian companies.