Iran has given OPEC some food for thought by revealing its plans to raise output swiftly with the help of foreign investors immediately after the lifting of sanctions imposed over its nuclear programme.
However, many analysts believe that OPEC will opt to keep quotas at their current levels when they meet in Vienna later this week.
Oil Minister Bijan Zanganeh said Iran could increase oil exports by 500,000 barrels per day immediately after any lifting of sanctions.
“Very quickly we can increase by half a million and after a couple of months we can increase it to 700,000 barrels per day,” he told reporters ahead of OPEC’s Wednesday meeting.
He said Iran could pump 4 million bpd in less than three months after any lifting of restrictions.
Zanganeh said he planned to meet with some foreign oil companies while in Vienna but declined to name them.
He said Tehran would offer oilfields, projects and its final investment contract to foreign oil companies in November in London, pushed back from an original scheduling of the event for April.
The main priority will be rehabilitating of existing aging oilfields – Ahwaz, Aghajari, Gachsaran, Marun and Bibi Hakimeh which together make up more than 80 percent of Iran’s total output, Zanganeh said.
Iran’s talks with six major powers on curbing its nuclear programme in exchange for an end to Western sanctions could be extended for six months if no deal is reached by a July 20 deadline agreed by all parties, a senior Iranian official said. in Geneva.
When asked how Iran would react if sanctions were not lifted, Zanganeh replied: “We entitle ourselves to increase our output with any way we can.”
Ministers said they expected OPEC to keep its output ceiling unchanged on Wednesday, and Zanganeh echoed that view.
“I don’t think it’s a matter of challenge within OPEC,” he said.
“Yes, everyone is happy with this situation,” Zanganeh said when asked his view on the current oil market. “It seems that the producers and consumers are in a good situation.”
