Iran is planning a rapid boost in oil output, according to a senior oil ministry official, as discussions between Tehran and six major nations continue to eliminate US sanctions that have kept the country producing significantly below capacity since 2018. Iran and the six nations have been in discussions since April to resurrect a 2015 nuclear agreement that was terminated three years ago by former US President Donald Trump, reimposing sanctions.
Most of the country’s crude output would be restored within a month if sanctions are eased, according to Farokh Alikhani, production manager of the National Iranian Oil Company (NIOC), who spoke to the oil ministry’s SHANA website.
Oil output has been restored to pre-sanctions levels at one-week, one-month, and three-month intervals, according to meticulous planning.”
Washington, on the other hand, stated on Tuesday that even if the nuclear deal
However, Washington stated on Tuesday that even if the nuclear agreement is resurrected, hundreds of US sanctions on Iran will remain in place. This might imply that fresh Iranian oil supplies will not be reintroduced into the crude market very soon.
In 2016, Iran emerged from years of economic isolation after world powers withdrew punishing international sanctions against the Islamic Republic in exchange for Tehran complying with the 2015 nuclear deal.
Tehran’s oil exports surged to 2 million barrels per day (BPD) in 2016 and peaked at 2.8 million BPD until Trump reimposed sanctions in 2018.
Alikhani stated that Iran intended to increase output “to greater than 4 million BPD in the near future.Iran’s average daily oil output following the 2015 deal was 3.38 million BPD, and we want to return to that level if sanctions are repealed,” Alikhani added.