Iran names new oil minister, warns reserves are limited

Iran named a new oil minister, Mohsen Paknejad, following a vote of confidence in parliament on Wednesday, azerbaijan Trend News Agency reported.

Paknejad, an oil ministry veteran who previously served as deputy oil minister from 2018 to 2021, took to the podium on Wednesday to lament the state of affairs in Iran’s oil industry.

The new oil minister called on Tehran to increase production, warning that fossil fuel reserves will remain limited for the next two decades without significant development efforts.

As things stand now, Iran is expected to see its oil production rise by 400,000 barrels by the end of next year, according to Trend AZ.

Paknejad said the ministry would work to balance production and consumption to stabilize the industry.

In July, according to OPEC figures, Iran saw a 20% monthly increase in crude oil production to 3,271,000 barrels.

The country’s total fossil fuel reserves are set at 1.2 trillion barrels, according to Trend. However, Iran needs help to get fossil fuels out of the ground, with the Azeri news agency indicating that around 70 percent of its gas reserves remain trapped underground due to technological inadequacies.

Iran has a total of 74 oil fields and 22 gas fields in operation.

While production and development remain a problem, sanctions continue to bite exports and revenues.

Iran, however, seems to have rallied new buyers of its sanctioned crude, including Oman and Bangladesh, Reuters reports.

Iran’s oil production was recently estimated to have reached its highest level since 2018 as Tehran seeks to boost production and exports, as well as export earnings with them, despite US sanctions.

Last month, Iran’s oil minister, Javad Owji alleged that Tehran currently exports its oil to 17 countries.

Washington is still considering ways to reduce Iran’s oil exports amid heightened tension in the Middle East following Tehran’s vow to avenge the death of Hamas leader Ismail Haniyeh on Iranian soil.

By Charles Kennedy for Oilprice.com

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