Ghanbar Naderi
Press TV, Tehran
The National Iranian Oil Company finalizes 13 new contracts worth 1.5 billion euros to boost oil production capacity by an extra 185,000 barrels per day.
During the signing ceremony in Tehran, Oil Minister Bijan Zanganeh confirmed that his ministry is also moving ahead with its plans to help build new storage facilities to increase capacity by two million barrels a day in the near future.
At the moment Iran is capable of producing more than 3.5 barrels of oil per day. However, global oil demand has seen a sharp fall due to the coronavirus pandemic. The country’s oil industry is being further harmed by US sanctions as well.
In order to increase its oil production capacity, the National Iranian Oil Company will boost efforts to develop oil-rich areas, too. This will include building new schools, hospitals and roads in Khuzestan, Bushehr and Hormozgan provinces.
Iran has the world’s fourth largest proven oil reserves with roughly 10 percent of the world’s total. At 2020 rates of production, the country’s oil reserves are expected to last at least 150 years if no new oil field is discovered.
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