TEHRAN – Over the past two years, Iran’s oil industry has raised its daily production capacity by 285,000 barrels, bringing it to 3.715 million barrels in Mehr 1405 (September 23 to October 22, 2026). The gain was achieved through development projects, the revival of wells, and the strengthening of production and processing infrastructure, despite sanctions and financial and technological limits.
The industry has recorded significant growth in capacity despite continued sanctions, limited financial and technological resources and security tensions. The country’s daily crude oil production capacity rose from 3.43 million barrels in Shahrivar 1403 (August 2024) to 3.715 million barrels in Mehr 1405, an increase of 285,000 barrels per day, or about 8.3 percent. Output in Mehr 1405 was also 55,000 barrels per day higher than in Mehr 1404.
The main lines of action in this period include activating existing capacity, reviving low-yield wells, developing shared fields, and strengthening processing and transfer infrastructure. As part of this effort, a fast-track plan has been defined to add 250,000 barrels per day of crude production at a cost of $3 billion, of which 70,000 barrels per day has been achieved so far. The project is financed 80 percent from the National Development Fund and 20 percent from the internal resources of the National Iranian Oil Company (NIOC).
Development contracts for the Azadegan, Azar, Changuleh and Band-e-Karkheh fields, with total investment of about 13 billion euros, have been ratified. On infrastructure, contracts have been signed with the private sector to create new processing capacity of 315,000 barrels per day, bringing the total processing capacity awarded to the private sector to 430,000 barrels per day. In addition, 129 drilling rigs are active nationwide, and a contract worth about $1 billion has been concluded to supply services for 20 new rigs to drill 270 wells.
With Hamid Bovard taking over as acting oil minister, having headed NIOC for the past two years, the upward trend in oil production is set to continue, with an emphasis on sustaining production and development programs, strengthening oil trade and sales policies, rebuilding damaged facilities, capturing flare gas and speeding up projects ready for inauguration. In recent remarks, Bovard stressed serious follow-up on oil sales and the need for greater solidarity and effort from employees, and called for turning the country’s capacities into an opportunity for construction.
Continuing on this path depends on coordination among production, development, processing and sales, sustainable financing, and the use of domestic expertise. These factors can turn the capacity created into stable production and reliable revenue for the national economy.