Iran Sets Ambitious Oil, Gas Production Targets Amid Aging Fields

The Iranian Oil Ministry has set ambitious production targets for crude oil, gas, and other petroleum products. According to Shana, the Oil Ministry's official news agency, the plan aims to increase oil production by 8%, equivalent to 350,000 barrels per day.

However, much of this growth may be offset by natural decline in production from aging oilfields. Iran reportedly loses around 300,000 bpd in daily production capacity due to low recovery rates and lack of technology.

The country's average oilfield recovery rate is currently around 25%, but officials hope to boost it to 40%. This would involve implementing enhanced oil recovery techniques to draw more crude from reservoirs before they decline permanently.

Natural gas output is also expected to rise by 17%, or close to 150 million cubic meters per day, thanks in part to increased production from the South Pars field, shared with Qatar. Gas condensates and naphtha output will increase by 29% to around 900,000 bpd.

The Oil Ministry plans to inject natural gas and water into oilfields at higher rates, up 50% and 38%, respectively. To boost output from key fields, including those shared with Iraq, Tehran is prioritizing completion of South Pars phases 13-24.