Iran has announced the discovery of significant oil and gas reserves within the Pazan field, which is expected to alleviate the country's energy challenges.
Iran’s Oil Minister Mohsen Paknejad said that the new reserves in southern Iran contain at least 200 million barrels (mbbl) of crude oil and an estimated ten trillion cubic feet (tcf) of gas.
With a projected 70% recovery rate, recoverable gas volumes are estimated at around 7tcf.
The exploration activities resumed after an eight-year pause, with extraction expected to begin in 40 months, reported Reuters, quoting Paknejad.
This discovery is expected to help counteract energy shortages exacerbated by international sanctions and outdated infrastructure.
Iran Chamber of Commerce sustainable development, environment and standards commission head Reza Padidar was quoted by Iran International as saying: “Iran is currently the world’s third-largest gas producer and the second-largest in reserves.
“According to recent data from energy research institutes, Iran’s gas consumption is twice that of the European Union.”
Iran has been grappling with energy shortages as demand for electricity and gas surpasses production capabilities, resulting in frequent outages and industrial disruptions.
Sanctions have further hindered the country's ability to import and upgrade its ageing energy infrastructure, impacting the extraction of existing reserves.
The Iranian Union of Exporters of Oil, Gas and Petrochemical Products noted that the crisis has intensified since November 2024.
Earlier this year, France, Germany and the UK reimposed UN sanctions, citing Iran's alleged non-compliance with nuclear commitments.
The sanctions have reinstated restrictions on oil, gas and petrochemical exports, further isolating Iran's energy sector and limiting foreign investment.
Recently, the Iranian Offshore Oil Company signed two agreements to acquire advanced offshore drilling rigs as part of its efforts to boost oil and gas production.
The agreements, signed under the special authority of the Oil Ministry, received approval from the Board of Directors of the National Iranian Oil Company.
