Iran is reportedly preparing to boost oil production to re-enter the global oil market as talks with the US over the 2015 nuclear deal show sign of progress.
Iran’s National Iranian Oil Company (NIOC) officials were reported by Bloomberg as saying that the Iranian oil fields are undergoing overhaul operations. It is also re-establishing connections with oil buyers.
In an optimistic estimate, the country could reach almost four million barrels a day production capacity in three months, according to the Bloomberg report.
Talks are currently underway between Iran and other 2015 nuclear deal signatories, including the US. The two sides have signalled that an agreement is close by.
Under the 2015 deal, Iran agreed to dismantle most of its nuclear programme. It also agreed to open its facilities to more extensive international inspections in exchange for sanctions relief.
A positive outcome from the ongoing talks could reactivate the 2015 Iran nuclear deal from which the US withdrew in 2018 under the leadership of Donald Trump.
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The move requires Iran to accept limits on its nuclear programmes in exchange for the US to lift sanctions imposed by the former US president.
In a separate development, NIOC is reportedly planning to award a $1.78bn contract to Iran’s Petropars to develop the Farzad-B gas field.
Petropars is expected to produce 28 million cubic metres of gas a day from the field in five years, Iranian energy news service Shana reported citing the country’s oil ministry official.
As per the estimates, Farzad-B holds around 500 billion cubic meters of reserves.
Earlier, ONGC Videsh-led Indian consortium was reportedly in talks with Iran to develop the field.
However, progress was delayed due to differences over investment volume and gas prices delayed, and negotiations were completely stalled following the US sanctions on Iran in 2018.