Iran leads OPEC output surge

iran opecIran's oil production has reached its highest level since December 2011. (Image source: takawildcats/fotolia)Monthly data compiled by Bloomberg showed that Iran’s oil production rose by 300,000 bpd in April, according to a report by Kallanish Energy. This was the sharpest increase recorded amongst OPEC producers, whose combined output grew by 484,000 bpd in that month, the report says

 Unofficial data complied by Reuters and Bloomberg shows that Iran pumped between 3.4mn bpd and 3.5mn bpd in April, the highest level since December 2011. The country’s oil minister is reported to have said that Iran’s crude output will reach four million bpd by March 2017.

Iran is making strides in regaining its market share in Asia in particular following the lifting of sanctions. The latest official figures show that Asian imports of Iranian oil in March jumped 50 per cent from a year earlier, led by the growth of shipments into India and South Korea. In the first four months of 2016, India's oil imports from Iran more than doubled to 322,500 bpd, according to Reuters, in comparison with 160,500 bpd in the same period last year. India's oil imports from Iran are expected to surge in coming months, when refiners Hindustan Petroleum Corp and Bharat Petroleum Corp begin lifting Iranian oil, Reuters notes.

Iran’s oil exports to South Korea have quadrupled to 400,000 bpd since sanctions were lifted in January, and the two countries have signed a memorandum of understanding (MoU) to enhance their cooperation in the development of oil and gas fields, Kallanish Energy reports. Iran is also set to resume cooperation with Malaysia, following the visit of Malaysia’s Minister of Foreign Affairs to Iran in May.

Tehran is set to host the 21st Iran International Oil, Gas, Refining & Petrochemicals Exhibition from 5-8 May at which around 2,000 domestic and international companies from 35 countries are due to exhibit. Top officials from the Ministry of Petroleum, NIOC, NIGC, NIPC and NIORDC are also expected to be present, setting the scene for further international co-operation in Iran’s oil industry.

A full analysis of prospects for Iran’s oil industry can be found on p18 in the latest edition of Oil Review Middle East. http://www.oilreviewmiddleeast.com/current-issue

 

 

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