JCPOA Saved Iran’s Lost Oil Market Share

Zangeneh, who was addressing the opening of Iran Oil Show, said Iran’s return to oil market was an immediate outcome of the nuclear agreement, known as the Joint Comprehensive Plan of Action (JCPOA).

“After the entry into force of the JCPOA [in Jan. 2016], Iran’s oil production and exports increased by more than 1 mb/d and we have managed to regain a share that had been lost and was feared to never return,” he said. 

Zangeneh also said that under the administration of President Hassan Rouhani, oil fields jointly owned by Iran’s neighbors had been developed. 

He said production from the West Karoun fields in western Iran soared from 70,000 b/d in 2013 to 280,000 b/d in March. 

Zangeneh said that the oil layer of South Pars gas field had started producing 25,000 b/d of oil while Azar oil field, a jointly owned reservoir, was supplying 15,000 b/d of oil.

The minister also said that Iran’s petrochemical output had increased by more than 5 million tonnes, which would hit 9 million tonnes with new projects planned to come online before the Rouhani administration bows out in August. 

“In total, nearly 10.5 million tonnes would have been added to the country’s petrochemical output at the end of this four-year period,” said Zangeneh.

The minister said he was shocked when he took office in 2013 as minister of petroleum. “It was incredible for me. An inappropriate trend was under way in the petroleum industry and we spent time on regulating relations as much as possible.”

Zangeneh said Iran’s oil sector had yielded the highest ever revenue in 2010 and 2011, but it had been spent inefficiently. 

The minister said that 11 development phases of South Pars gas field, which Iran shares with Qatar, came on-stream over the past three and a half years. 

Zangeneh said the South Pars output had doubled in recent years, adding that the giant reservoir’s production jumped from 285 mcm/d in 2012 to 575 mcm/d last March.

As a result, he added, gas supply to power plants increased from 36 bcm in 2013 to more than 62 bcm in 2016.

Zangeneh said Iran, which used to import gasoil in 2013, is now an exporter, adding that the country also exported 50 million liters of fuel oil in 2016.