Iranian government ruled to increase daily oil production

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Iranian authorities signed a decree according to which the oil production in the Islamic Republic is increased by 500 thousand barrels per day, reports Reuters referring to Iranian deputy minister of oil Rokneddin Javadi, who was quoted by the agency Shana.

Javadi, who also heads the National Iranian Oil Company, said that the decree was issued on Monday, January 18.

Earlier Iranian Oil Minister Bijan Namdar Zanganeh said about the readiness to increase production by 0.5 million barrels per day in just few weeks after the lifting of sanctions, and by the same amount in addition to that within next six months.

In 2008 the volume of oil production in Iran was amounted to an average of 4 million barrels per day, in 2011 – 3.6 million barrels, and in December 2015 – 2.7 million barrels, notes Bloomberg. According to the agency experts, in 12 months after the lifting of sanctions Iran will increase the production by 680 thousand barrels per day.

The United States and the European Union lifted sanctions related to Iran’s nuclear program on January 16. This became possible after the IAEA had officially recognized the fact of Iranian compliance with its obligations to restrict its nuclear program in accordance to negotiations taken place in July 2015. Although, United States retained the restrictions, and later imposed new sanctions related to the program of the Iranian ballistic missile tests.

Source: RBC