Iran says will re­claim full oil mar­ket share post-sanc­tions

The Pak Banker - - INTERNATIONAL BUSINESS/SPORTS -

Iran will ramp up crude oil pro­duc­tion and re­claim its lost share of ex­ports shortly af­ter in­ter­na­tional sanc­tions on the Opec mem­ber are lifted, Iran's oil min­is­ter Bi­jan Zan­ganeh said on Tues­day.

Iran and six world pow­ers agreed a deal in July to curb Tehran's nu­clear pro­gramme, but sanc­tions im­posed in 2012 will not be lifted un­til Iran has com­plied with all the terms of the pact. Bri­tain's for­eign min­is­ter said on Mon­day that in­ter­na­tional sanc­tions on Iran could start to be lifted as early as spring next year. At a news con­fer­ence in Tehran, Zan­ganeh said Iran should sell its crude re­gard­less of the oil price.

Brent oil was trad­ing at about $44 a bar­rel on Tues­day, close to 6-1/2-year lows hit this week on global over­sup­ply and wor­ries about the sever­ity of an eco­nomic slow­down in China, the world's top com­mod­ity con­sumer.

"We should sell our oil whether the price falls or goes to $100 (a bar­rel). Even though we would like to sell our oil more ex­pen­sively, the price is de­ter­mined by the mar­ket," Zan­ganeh was quoted as say­ing by Shana, the oil min­istry's news agency. "Af­ter lift­ing sanc­tions, Iran will take back the mar­ket share of more than 1 mil­lion bar­rels a day that it lost," he said.

Zan­ganeh said Iran would raise its pro­duc­tion by 500,000 bar­rels per day (bpd) once sanc­tions were lifted and that a fur­ther 500,000 bpd would be added shortly af­ter that. Ear­lier this month, the In­ter­na­tional Energy Agency said Iran could raise its oil out­put by as much as 730,000 bpd from cur­rent lev­els fairly quickly af­ter sanc­tions were re­moved.

Ira­nian oil­fields, which pumped around 2.87 mil­lion bpd in July, could in­crease pro­duc­tion to be­tween 3.4 mil­lion and 3.6 mil­lion bpd within months of sanc­tions be­ing lifted, the West's energy watchdog said.

The re­port by the Paris-based IEA sug­gested any in­crease in out­put would prob­a­bly be more mod­est than Ira­nian es­ti­mates, and said Tehran would need mas­sive in­vest­ment to raise pro­duc­tion ca­pac­ity.

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