Despite sanctions and financial challenges, Iran's oil industry has succeeded in increasing its production capacity from 3 million and 430 thousand barrels in September 2023 to 3 million and 715 thousand barrels in October 2025. This production surge not only reflects domestic capabilities but also demonstrates the country's strong determination in facing global challenges.
Effective Strategies for Increasing Production
The core of this achievement has been the optimization of surface facilities, the revival of low-yield wells, and the acceleration in the completion of shared fields in West Karun. The emergency plan for a 250 thousand barrel increase, with a $3 billion investment—80% of which is funded by the National Development Fund and 20% from the internal resources of the National Oil Company—has been initiated, and so far, 70 thousand barrels per day of its target has been stabilized.
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Development of Fields and New Drilling
In the upstream sector, development packages worth €13 billion have been implemented in the Azadegan, Azar, Changuleh, and Band-e Karkheh fields. These projects include the transfer of processing facilities to the private sector with contracts for 315 thousand barrels, which has raised the outsourcing processing capacity ceiling to 430 thousand barrels per day. Meanwhile, 129 drilling rigs are active, and with a $1 billion contract for 20 new rigs, drilling of 270 wells is underway.
However, the natural decline of 8 to 10 percent annually in oil reservoirs necessitates the creation of approximately 300 thousand barrels of compensatory capacity annually and the use of enhanced oil recovery (EOR/IOR) methods to maintain the record of 3.7 million barrels. These challenges highlight the importance and necessity of innovation and the application of new technologies in Iran's oil industry.
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