Iran increases oil exports to 3.8 million bpd: NIGC

08 Nov 2022

Iran increases oil exports to 3.8 million bpd: NIGC

Iran is expected to increase production to 4 million barrels per day, and supply new customers across the global energy market

By News Desk, TheCradle

November 8, 2022

https://thecradle.co/Article/News/17998

On 8 November, the Director General of the National Iranian Oil Company, Mohsen Khajeste Mehr, revealed that Iran produces over 3.8 million barrels per day (bpd), and is expected to reach 4 million bpd by the end of the Iranian new year.

Mehr highlighted that the conditions for oil exports have improved, stressing that Tehran has discovered several new clients and seeks to pursue new “traditional” customers.

In the past year, Iran has bolstered its efforts to increase its oil production despite US sanctions. Turkey’s Foreign Minister called on western nations to lift unilateral economic sanctions imposed on countries like Iran and Venezuela and said the US needs to “stop bullying” Saudi Arabia over rising oil prices, last month.

Earlier this month, Armenian Prime Minister Nikol Pashinyan met with Iranian officials in Tehran to sign cooperation agreements and a memorandum of understanding (MoU), which would double Iran’s oil exports to Armenia.

The director of the National Iranian Gas Company (NIGC) clarified that Armenia imports about 365 million cubic meters of natural gas from Iran every year and will receive one million bpd, despite Russia being Armenia’s number one energy supplier.

In return, Iran will receive electricity produced by thermal plants in Armenia. 

Over the past several years, Iran has also helped sanctioned nations such as Venezuela to overcome US sanctions, which nearly destroyed the Latin American nation’s oil industry.

Last month, Iranian Oil Minister Javad Owji revealed that Venezuela’s El Palito oil refinery has started processing some 100,000 barrels per day (bpd) imported from Iran.

Earlier this year, Iran’s Naftiran Intertrade Co (NICO) signed a 110 million euro contract with state-owned oil company PDVSA to modernize Venezuela’s largest oil refinery, the Paraguaná Refining Center (CRP).

The Islamic Republic also recently delivered the third supertanker to Venezuela, as part of a long-term contract signed in 2006, which included four vessels in total.

Since signing several bilateral agreements between May and June, Venezuela has received several million barrels of Iranian heavy crude. The most recent delivery came in late September when Caracas received 1.22 million barrels of oil along with 2 million barrels of condensate.

Oil industry analysts revealed in January that Venezuela doubled its oil production between 2021 and 2022, due to Iran’s help.

As part of their cooperation to overcome unilateral western sanctions, Venezuela has also provided Iran with at least one million hectares of agricultural land, allowing the water-starved Islamic Republic to provide food security for its population.