New oil find boosts Iran’s reserves

IRAN has discovered a new oil field in the country’s south with more than 50 billion barrels of crude, its president said yesterday, a find that could boost the country’s proven reserves by a third as it struggles to sell energy abroad over US sanctions.

The announcement by Iran president Hassan Rouhani comes as Iran faces crushing American sanctions after the US pulled out of its nuclear deal with world powers last year.

Rouhani made the announcement in a speech in the desert city of Yazd. He said the field was in Iran’s southern Khuzestan province, home to its crucial oil industry.

Some 53 billion barrels would be added to Iran’s proven reserves of roughly 150 billion, he said.

“I am telling the White House that in the days when you sanctioned the sale of Iranian oil and pressured our nation, the country’s dear workers and engineers were able to discover 53 billion barrels of oil in a big field,” Rouhani said.

Oil reserves refer to crude that is economically feasible to extract. Figures can vary widely by country due to differing standards, though it remains a yardstick of comparison.

Iran has the world’s fourth-largest proven deposits of crude oil and the world’s second-largest deposits of natural gas. It shares a massive offshore field in the Persian Gulf with Qatar.

The new oil field could become Iran’s second-largest field after one containing 65 billion barrels in Ahvaz. The field was 2400km2, with the deposit about 80m deep, Rouhani said.

Since the US withdrew from the 2015 nuclear deal, the other countries involved – Germany, France, Britain, Russia and China – have been struggling to save it. However, they have offered no means by which Iran can sell its oil abroad.

Iran has since gone beyond the deal’s stockpile and enrichment limits, and has started using advanced centrifuges barred by the deal. It has also just begun injecting uranium gas into centrifuges at an underground facility.

The collapse of the nuclear deal coincided with a tense summer of attacks on oil tankers and Saudi oil facilities that the US blamed on Iran. Tehran denied the allegation.