Iran can increase oil production by a million barrels a day, however it requires significant investment, says the adviser of Institute of modern development Nikita Maslennikov.
MOSCOW, 17 Jan. Full-scale output of Iran on the world oil market may be postponed to 2017-2018 due to the difficulties in attracting investment in oil and gas fields, according to the adviser of Institute of modern development Nikita Maslennikov.
On Saturday, the country’s IAEA received the final report of the experts of the Agency on Iran’s nuclear program, leading up to the inauguration of its implementation. After that, the EU and the US confirmed the removal from Iran of economic and financial sanctions related to its nuclear program.
“Now everyone is expecting the release of Iran to market crude oil in full, but I think it’s kind of a common view that is emerging now that the strong growth in supply, yet the Iranians in the near future, in the course of this year to ensure you will not be able. All agree that to increase the supply of crude oil through the Iranian supply by about 300 thousand barrels a day is possible,” said Maslennikov.
He noted that potentially Iran can increase production by one million barrels a day, but this will require significant investment. In this regard, Iran has recently stepped up the search for investors in their oil and gas deposits.
“But the problem is that international oil giants have dropped in the past year, their investment volumes by about 25-30%, and this year is expected to decrease by about 20% in investment activity leading oil companies. So is the prospect of large-scale exit Iran market still lingers and is delayed somewhere in 2017-2018”, — said Maslennikov.
The expert noted that even the potential increase in supply from Iran to the limits of 300 thousand barrels per day carries certain risks for the market.
“It is obvious that given the lifting of sanctions and due to the fact that oil is not going to grow to 35 dollars a barrel — and OPEC is such a kind of reference point, — at the beginning of March we can get an emergency conference of OPEC, and associated with the dynamics of oil prices, and a possible increased presence of Iran in the oil market,” added Maslennikov.