Iran, currently producing 3.2 million b/d of oil, has set a production target of 5 million b/d by March 1994.
On the way to that target Iran's oil flow will climb to 4 million b/d by March 1993, says A. Moshtaqhian, director of exploration and production for National Iranian Oil Co. (NIOC).
With oil reserves of about 100 million bbl, Iran will find it easy to increase productive capacity, Moshtaqhian told the Gulf Oil and Politics publication.
"However it is too soon to talk about a production capacity beyond 5 million b/d," he said. "We have to see what the cost of production and oil prices are before we determine if it is economical to further expand our capacity."
Moshtaqhian raised the possibility of the use of production sharing contracts in his interview with Gulf Oil and Politics, quoted by OPEC News Agency (Opecna).
Separately, Opecna reported Iran's campaign to boost oil productive capacity is marking progress. Current capacity stands at 3.4 million b/d, up 1 million b/d since the end of Iran's 8 year war with Iraq in 1988.
Iran's fleet of drilling rigs is to increase to 60 by March 1993, compared with 42 in 1992 and eight in 1990.
OIL RESOURCES
Oil & Gas Journal pegged Iran's oil reserves at 92.86 billion bbl at the start of 1992 (OGJ, Dec. 30, 1991, p. 48).
And the Abu Dhabi Investment Authority estimates Iran will spend $13 billion to achieve 5 million b/d (OGJ, Sept. 7, Newsletter).
In noting that Iran's 20% primary recovery rate is less than that in most other countries, Moshtaqhian said NIOC is injecting gas into five major oil fields to assist recovery. NIOC plans to use the same technique in seven more fields, hoping to boost primary recovery to about 30%.
Iran plans to use 6.3 bcf for gas lift in oil fields and expects by 1995 to be able to deliver about 120,000 bbl of liquefied petroleum gas to the Iman Khomeini petrochemical complex, Opecna reported.
NI0C won parliamentary permission to negotiate contracts with foreign companies for development of South Pars and North Pars gas fields. South Pars, the biggest gas field in Iran, holds reserves of 100 tcf.
Iran's constitution bans concession agreements, but it is possible to have contracts with foreign companies for development and production.
Negotiations with international companies until now have been based on the companies spending a specified sum for development of fields. But Moshtaqhian said no contracts have been signed because oil companies have not found Iran's proposed contracts "very suitable."
He said issues such as a rate of return will be clarified after conclusion of the first Pars field development contract.
Asked whether Iran could follow other members of the Organization of Petroleum Exporting Countries such as Venezuela and Algeria in favoring production sharing agreements, Moshtaqhian cited the extent of political and social changes in Iran in the last decades.
"Who knows?," Moshtaqhian asked. "We may in the next few years come to the same sort of conclusion the Algerians and Venezuelans came to in recent years. But we do not know that yet."
RECOVERING FROM WAR
Meantime, Iranian petroleum installations are moving back to normalcy in the wake of the country's war with Iraq.
Installations at the Persian Gulf port of Lavan, damaged in fighting with Iraq, are to be back on stream by the end of the current Iranian year scheduled to end Mar. 20, 1993, Opecna reported.
Gholam Hossein Nejabat, an Iranian petroleum official, said the facilities will have an export capacity of 150,000 b/d of oil.
Iran's Kharg Island oil terminal complex, now being restored, is to include a storage area capable of holding 10 million bbl of oil. The complex, which early in the 1980s could store 22 million bbl, was damaged repeatedly during the war. Officials said 14 terminals have been rebuilt, and the complex will be able to export 6-8 million b/d within the next 2 years.
Before the 1979 revolution and the war, Iran exported 5.5 million b/d.
Elsewhere, one of Iran's oldest refineries, the 57 year old Kermanshah (formerly Bakhtaran) plant, is producing about 30,000 b/d of products as it drives to achieve 35,000 b/d.
The petroleum ministry's lranoil publication said the refinery, which ceased operations several times during the war, is being supplied feedstock through the Ahvaz-Ray pipeline from Afrineh, north of Ahwaz.
Oil wells at Naftshahr, which also supply the refinery, have been repaired, four wells have been drilled, and the pipeline rebuilt after it was damaged in the war. Sarkan and Maleh Kuh oil fields also will provide crude feedstock, Iranoil said.
Meanwhile, Opecna reported the first phase of Iran's Isfahan petrochemical complex, with a capacity of 150,000 tons/year of products, is almost complete. Start-up is to take place this year.
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