National Iranian Oil Company (NIOC) announced Monday that it has offered 50 oil and gas fields to international bidders — the first time it has done so since last year's landmark nuclear deal with world powers.
Also on Monday, Iran's deputy oil minister welcomed a preliminary agreement by Organization of Petroleum Exporting Countries nations to limit output to between 32.5 million and 33 million barrels per day. The deal was reached in late September, with the aim reducing a global glut that has depressed oil prices for over two years, AP reported.
Deputy Oil Minister Amir Hossein Zamani-Nia told reporters in Tehran that the agreement was "small step, but in the right direction".
Iran has been trying to restore its oil industry since emerging from international sanctions over its nuclear program earlier this year. The country, with an oil output of 3.85 million barrels per day, initially said it would only consider a ceiling after it reaches four million barrels per day — its pre-sanctions level.
Meanwhile, Iran's Oil Ministry announced on Sunday it will invite foreign companies to bid for oil and gas projects for the first time. Also on Monday, the ministry released details, saying this would include 29 oilfields and 21 gas fields.
The ministry said foreign companies should submit their applications by November 19, and that successful companies would be announced on December 7.
Iran had earlier said that priority for exploration and production for foreign companies would be given to neighboring countries with which it shares border fields. The country has 28 joint offshore and onshore gas and oilfields with those countries.
Iran hopes to attract more than $150 billion in foreign investment for its oil, gas and petrochemical industry by 2020. It has already upgraded its model for oil contracts, allowing for a potential full recovery of costs over almost two decades. Earlier this month, Iran signed the first such contract with a local oil company.
Raising gas output
Oil Minister Bijan Namdar Zanganeh told an energy conference on Monday that Iran hopes to boost its natural gas production to Qatar's level by early next year.
He said Iran's priority was developing the giant South Pars Gas Field which it shares with Qatar, as well as shared oilfields.
Iran plans to increase its crude oil production to four million barrels per day in 2019 and 4.28 million bpd in 2020, while boosting condensate output to one million bpd as early as 2018, Zanganeh said at the conference.
.OPEC members will meet next month to seek agreement on how to put into effect a planned cut in the group’s output.
