NIOC Chief:

Iran’s Oil Exports Grow 40% Despite Sanctions

Date: 15 May 2022 - 21:57

News ID: ۱۰۲۵۹۱

TEHRAN- The CEO of the National Iranian Oil ‎Company (NIOC) Mohsen Khojasteh-Mehr has said that the country is seeking to sell its oil at the highest volume possible, adding that the country’s exports have witnessed a 40 percent hike in spite of sanctions.

Speaking in a press conference on the sidelines of the 26th International Oil, Gas, Refining and Petrochemical Exhibition, Khojasteh-Mehr said the imminent deal is aimed at taking optimal advantage of the capabilities of domestic companies for developing the second phase of the North Azadegan oil field and underway South Azadegan field project.

NIOC chief added thy Iran’s oil company would be able to immediately double its crude exports if problems facing the country at the international level are solved.

Khopjasteh Mehr said that the company has created the capacity to raise oil exports after it managed to return to output levels seen before the United States imposed sanctions on Iran four years ago.

“As we managed to bring production back to pre-sanctions levels, now we claim that we can double oil exports and the capacity exists in oil terminals and other mechanisms to raise the oil exports,” Khojasteh Mehr was quoted as saying by the official IRNA news agency.

The Ministry of Petroleum has decided to ink the deal, he said, adding the contract will be signed in a couple of months with the consortium that is composed of exploration and production companies.

Elsewhere in his remarks, he said that Iran needs to do every effort to retake its share in the competitive international market and find new customers.

Elaborating on the investment in the upstream sector, he said $160 billion have been agreed to be allocated to it, of which $90 billion will be allotted to the oil industry and $70 billion to the gas industry.

Reports by international energy analytics firms have confirmed that Iranian oil exports rose to four-year highs of nearly 1.6 million barrels per day (bpd) in late 2021 and stayed at the same in first three months this year.

Iran used to export up to 2.8 million bpd of oil before Washington imposed sanctions on the country in 2018 after abandoning an international agreement on the country’s nuclear program.

Khojasteh Mehr said that oil exports from Iran had increased by 40% since he took over as NIOC’s chief in August last year.

He said that exports of condensates, a very light form of crude, from Iran had increased by 3.5 times over the same period.

The official said that Iran has used swap deals with other countries to raise exports of crude oil although he insisted that the country had received goods rather than investment in return for oil cargoes delivered to customers under the swap deals.

Armenian Minister Hails Iran’s Progress in Energy Sector

Armenia’s minister of territorial administration and infrastructures Gnel Sanosyan visiting Iran Oil Show 2022 on Sunday and described the country’s progress in the energy sector as “astonishing”.

“What I saw at this big event stunned me,” said the visiting minister, adding, “Iran’s governmental and private sectors’ equipment and capabilities in both oil and gas industries impressed me.”

The top Armenia official also praised Iran’s progress made inside and outside the country, expressing hope that the relations between Yerevan and Tehran will be further deepened.

Iran Oil Show 2022 kicked off at Tehran’s Permanent Fairground on Friday and will run through May 16.

The four-day exhibition is hosting 1,200 Iranian and 44 foreign companies or their agents.

Apart from domestic participants representing Iran, foreign companies are from Italy, Spain, the United Arab Emirates, South Korea, Switzerland, Germany, Ukraine, South Africa, and Belgium.