Official: Iran's oil production could fall by 1 million b/d in 5 years

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, May 31 -- Iran’s oil production could fall 27% over the next 5 years due to lack of investment in the country’s energy sector, according to a senior oil and gas official.

Mohsen Khojasteh-Mehr, deputy oil minister for planning, told Iran’s state-run news agency IRNA production may fall to 2.7 million b/d from the current 3.7 million b/d unless $150 billion is invested in the energy sector.

Khojasteh-Mehr said the national oil company plans to invest $150 billion during the 5th development plan that ends in 2015 but that output will drop to 2.7 million b/d if investments are not made.

He said the proposed investment would raise the country’s oil production capacity to 4.7 million b/d by 2015, with natural gas production increasing to 1.47 billion cu m from the current 600 million cu m.

Khojasteh-Mehr said $75 billion would be used to develop gas projects, $34 billion to develop oil fields, and $32 billion to maintain production capacity.

Of the total investment needed, Khojasteh-Mehr said $40 billion would come from Iranian banks, $50 billion from the oil ministry, and $60 billion from foreign investors—despite sanctions imposed on Iran over its nuclear program.

Contact Eric Watkins at hippalus@yahoo.com.

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