Iran plans to raise oil output from joint fields

30 Aug, 2010

Iran plans a 20-percent increase in production at its offshore oil fields by next March, the head of Iran's Offshore Oil Company said on Sunday, a semi-official news agency reported.
"Our oil production from the Salman, Hengam and Foruzan oil and gas fields, will be increased 20 percent by March 2011," said Mahmoud Zirakchian-zadeh, managing director of Iran's Offshore Oil Company (IOOC), Mehr news agency reported.
The official said production of the Salman and Forouzan oilfields will each be increased 10,000 barrel per day (bpd). He did not elaborate on the Hengam oilfield.
Earlier this month, Iran said it had increased production of crude from its Hengam offshore oilfield to 10,000 bpd from its previous of 4,000 bpd.
Iran shares the Salman field with the United Arab Emirates and the Forouzan field with Saudi Arabia.
Iran needs capital to help expand and modernise its all-important energy sector, with many foreign companies increasingly reluctant to invest in the major oil producer due to a long-running stand-off with the West over its nuclear work.
Oil Minister Massoud Mirkazemi said in May that Iran needs around $25 billion a year in oil and gas industry investment and could turn into an importer of oil because of the lack of such funds.
One of the world's biggest oil and gas producers, Iran has been hit by US and UN sanctions that have frightened away international energy firms. The Islamic state has increasingly turned to Asian firms instead, but they often lack the technology to implement oil and gas projects.
Analysts say foreign investors treated Iran with caution because of mounting international pressure on the country over its disputed nuclear programme. Iran's hard-line rulers play down the impact of sanctions on the country's energy sector.
"To accelerate development of joint oilfields, some 40 million euros have been allocated for development of the Esfandiar oilfield," said Zirakchian-zadeh. The United States and its European allies fear Iran is trying to build bombs under cover of a civilian nuclear programme. Tehran says its nuclear work is aimed at generating power to meet the country's booming demand.

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