TEHRAN: The recent reports indicate that the Islamic Republic of Iran has already been able to escalate its oil exports to levels that existed before sanctions were imposed on the country in 2011. Iran’s exports of oil stood at 2.35 million bpd before the sanctions were imposed against the country in 2011. One of the main reasons for the increase in output has been a gradual increase in production from the South Azadegan field, in the strategic West Karun region, according to sources and Oil Ministry officials. In recent months, Iran has signed a number of upstream development deals as part of its plans to increase oil and gas exports to pre-sanctions level of four mbd.
Iran’s crude oil and condensate exports rose three percent month-on-month in January as it continued to regain market share, widening its appeal among refiners around the globe in the process. Iran was the only Middle Eastern producer to see exports rise in January, as others, like Iraq, Kuwait, Saudi Arabia, and the UAE, saw a fall in loadings, in line with agreed OPEC-led output cuts by crude producers. Unlike its peers under the landmark OPEC-led agreement, Iran has wiggle room to boost production to 3.8 mbd. Iranian crude is similar in quality to barrels from other the Organization of the Petroleum Exporting Countries (OPEC) countries in its region, meaning this is an ideal time for it to broaden its customer base, sources said. Iran, along with Libya and Nigeria, is allowed to produce “at maximum levels that make sense” as part of any output limits in a surprise deal reached last week by the OPEC.
