Iran's daily crude oil production capacity has risen from 3 million and 430 thousand barrels in September 2024 to 3 million and 715 thousand barrels in October 2026. The increase of 285 thousand barrels during this period is a significant achievement amid ongoing sanctions and financial and technological limitations in the country. Additionally, oil production in October this year has increased by 55 thousand barrels per day compared to the same month last year.
Plans for Increasing Oil Production
Part of the plan to increase oil production focuses on better utilization of existing capacities, reviving low-yield wells, and developing oil fields. In this regard, a project has been defined with the aim of increasing crude oil production by 250 thousand barrels per day, with an investment of 3 billion dollars, of which 70 thousand barrels per day of the target has been achieved so far. This figure is equivalent to about 28 percent of the project's target.
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The financing of this program is expected to be done from two sources: 80 percent from the National Development Fund and 20 percent from the internal resources of the National Iranian Oil Company. In the field development section, contracts related to Azadegan, Azar, Changuleh, and Band-e-Karkheh have been finalized with a total investment of about 13 billion euros. The implementation of these projects can pave the way for increasing production capacity in the coming years.
Challenges of Sustainable Production
Growth in oil production is not limited to extraction from wells and also requires the necessary facilities for processing and transporting oil. According to announced statistics, private sector contracts have been signed to create a new processing capacity of 315 thousand barrels per day, and the total processing capacity allocated to this sector has reached 430 thousand barrels per day.
In the drilling sector, 129 rigs are active in the country. In addition, a contract for the provision of services for 20 new rigs worth about one billion dollars has been signed for drilling 270 wells. If this program is executed and the wells are completed, it can help increase the production capacity of oil fields.
Increasing oil production capacity can enhance the country's operational power to meet domestic needs and supply oil in export markets. However, the created capacity alone does not guarantee an increase in sales and revenue. The sustainability of production, the ability to process and transport, the status of sales and collection of oil revenues, and also securing the necessary capital for maintaining the fields play a decisive role in converting this capacity into actual revenue.
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