Iran Investing $50 Billion to Boost Oil, Gas Output: Deputy NIOC Chief

Iran Investing $50 Billion to Boost Oil, Gas Output: Deputy NIOC Chief

TEHRAN (Tasnim) – The National Iranian Oil Company (NIOC) is investing $50 billion in the current Iranian calendar year (started March 21) to increase oil and gas production, the deputy CEO of the company said.

 Reza Dehghan pointed out that the projects are aimed at increasing the country’s oil and gas output.

Similar projects worth $33 billion will be also implemented in the future, he said. 

He made the remarks in the NIOC-Insurance Companies Forum on Wednesday, adding that Iran’s oil and gas production capacities will reach 5.5 million barrels per day (bpd) and 1.5 billion cubic meters per day (bcf/d) respectively from the current 4m bpd and 1 bcf/d by 2029.

To that end, it is necessary to invest $160 billion, two-thirds of which should be funded by foreign investors, he explained, Shana reported.

The development of Phase 11 of the South Pars gas field is among the most important projects, mentioned Dehghan, adding this phase’s production started after a 20-year delay last month.

According to the NIOC official, a $2.4 billion investment is needed to complete the development of Phase 11.

He pointed to the future investments, including $500 million for completing wells of other phases, $1.1 billion for drilling 35 wells in the South Pars gas field, and $15 billion for launching gas compressor stations in the South Pars field.

In total, $22 billion of investment has been made in the underway projects for boosting the country’s gas output, said Dehghan, continuing that some $20 billion projects have been also invested in ongoing projects for increasing oil production.

He stated that 100 investment opportunities in oil and gas industry will be offered in a couple of weeks. 

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