Paknejad: Iran Ready to Install Rig in Arash Field, Pending Border Talks

Date: 11 June 2025 - 22:44

News ID: ۱۴۰۵۱۴

TEHRAN - Iran’s Petroleum Minister Mohsen Paknejad denied claims of declining oil exports, stating that the Oil Ministry is prepared to install a drilling rig in the Arash oil field.
However, he noted the plan depends on the outcome of border negotiations and formal approval from the Foreign Ministry.
Paknejad spoke to reporters on Wednesday on the sidelines of a Cabinet meeting. When asked about potential changes to gasoline rationing, he said: “As of now, gasoline quotas remain unchanged, and there are no issues with fuel reserves.”
Regarding the Arash field, Paknejad said the Oil Ministry considers the site suitable for drilling. However, he stressed that the Foreign Ministry must first resolve border demarcation issues through diplomatic negotiations.
“Once the negotiations conclude and the Foreign Ministry issues an official directive, the Oil Ministry is ready to begin development operations in the Iranian section of the Arash field,” he added.
When asked whether U.S. sanctions would affect Iran’s oil sales, Paknejad acknowledged that sanctions aim to restrict oil sales but said Iran has adopted strategies to mitigate their impact.
“These sanctions have not significantly disrupted Iran’s crude oil exports in recent years,” he said.
On whether Iran still relies on oil as a primary revenue source or is shifting toward diversification, Paknejad said oil remains a national asset. However, he emphasized the need to balance resource preservation with economic benefits.
“Some believe preserving reserves means leaving oil underground for future generations, but international estimates suggest the world may gradually reduce reliance on fossil fuels,” he said. “If we can extract oil under favorable economic conditions and convert it into productive wealth, we are effectively investing in the country’s future.”
When asked about differences in U.S. policy under the Trump administration, Paknejad said: “There have always been threats to restrict Iran’s oil sales, but we believe we can overcome these limitations. Past experience shows such pressures have not decisively impacted our exports.”
On plans to build petro-refineries, he said the Oil Ministry is leveraging all legal capacities to establish refineries and mini-refineries.
“Converting crude oil into higher-value products will improve export conditions, and the Oil Ministry will spare no effort in this regard,” he said.
Responding to reports of U.S. sanctions on Iranian methanol, Paknejad said he had not received any confirmation.
Regarding fuel exports to Afghanistan, he clarified: “We have not directly exported oil to Afghanistan, but diesel transit has occurred. This process continues without issue.”