Iran to spend US$21bn of capex on oil projects by 2021: GlobalData

Iran GlobalIran is expected to spend about US$21bn in capital expenditure (capex) on oil projects between 2018 and 2021, a move that aims to increase production to about 4.9 mmbbl per day in 2021, according to GlobalData, a leading data and analytics company

The analysis of crude oil production has also stated that Iran is expected to own 66 fields that will produce liquid hydrocarbons by 2021. Of them, 38 are conventional and nine are heavy oil fields, with the remaining 19 gas fields producing condensate.

The Arabia Gulf nation will spend US$13.1bn as capex on conventional oil and US$7.9bn on heavy oil projects during the given time period, with spending peaking at $5.7bn in 2019, said GlobalData.

Iran GLobalData

“Average full cycle capex per boe for Iran’s oil projects is US$3.6. Onshore projects have an average full cycle capex of US$3 per boe, while shallow water projects have an average of US$5.3 per boe in full cycle capex,” according to the crude oil analysis report.

The average development break-even price for oil projects in Iran is about US$27.6 per barrel. Shallow water projects require an oil price of US$35.4 per barrel to break even, while the onshore projects have a development break-even oil price of US$25.5 per barrel, the report added.

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