TEHRAN (PIN) – Based on current projections, Iran’s crude oil production will exceed 4.2 million barrels per day during the current Iranian calendar year (started March 21, 2007) while production capacity of natural gas will reach 690 million cu. m. per day. Abdolmohammad Delparish, director of integrative planning department of National Iranian Oil Company (NIOC), told Petroenergy Information Network (PIN) that plan for increasing production and distribution of crude oil, gas liquids, liquefied gas, refineries’ feedstock, and crude oil exports has been prepared before the beginning of the current Iranian calendar year.”

The official stated that based on the existing projections, Iran’s crude oil output, as the most important index of the plan in the current year, will surpass 4.2 million barrels per day.

He said that Iran is bound by its OPEC quota for daily production of crude oil.

Delparish further stated that the National Iranian South Oil Company will account for about 3.2 million barrels of that output rise followed by Iranian Offshore Oil Company (IOOC), Iranian Central Oil Fields Company (ICOFC), and Arvandan Oil and Gas Production Company, which are supposed to yield respective amounts of about 800,000 barrels, 140,000 barrels, and 110,000 barrels of crude oil per day. The official said that Iran’s daily oil production will increase by 120,000 barrels during the current Iranian calendar year, adding, “On the opposite of the output hike, we have production fall in some fields due to reduced pressure of oilfields, so that, National Iranian South Oil Company (NISOC) is losing over 300,000 barrels of its production per year while a similar amount of new capacity is created in the company.”

Delparish further said that two major developments will happen with regard to domestic oil production during the current year.

“The first development is completion of development plan of Darkhoein oilfield by Arvandan Oil and Gas Production Company, which will increase the company’s oil output from the current figure of 50,000 barrels per day to 160,000 barrels per day in the second half of the year,” he said.

The official said that during the second half of the current Iranian calendar year (starts Aug 23), the output of NISOC will increase from 140,000 barrels per day to 155,000 barrels per day while production of IOOC will remain unchanged.

“Based on current projection, total production capacity for natural gas will increase from 523 million cu. m. per day to about 690 million cu. m. per day with an average production figure of 576 million cu. m. per day,” he said.

Delparish said that out of the average figure, about 290 million cu. m. per day will belong to NICOC and 170 million cu. m. will belong to various phases of South Pars gas field, including phases 6-8.

“The rest of gas production will be accomplished by other fields as well as through collecting associated gas,” he noted.

He further said that the Fourth Economic Development Plan has envisaged major changes in gas production including commissioning of part of the development plan of South Pars phases 6-8, inauguration of Tangeh Bijar gas field, and commissioning of Amak project.

“Varavi, Homa, and Shanol oilfields will reach their maximum production capacity by the end of the current year,” he said.

The official said that NISOC is expected to yield a daily average of 46 million cu. m. natural gas, part of which will come from Amak project.

He continued by saying that part of the said gas will be sent into the national network, part of it will be injected into oilfields, and a very small part, which is not currently being collected, will be burnt, though the Ministry of Petroleum is planning to minimize the amount of burnt gas until the end of the year.

Delparish stated that the NIOC’s plan of action for the current year will be most compatible with the Fourth Economic Development Plan and, in fact, one of the main duties of the NIOC is to realize the goals of the five-year development plan.

“Another feature of NIOC’s action plan is increase in all production indexes related to crude oil, gas, gas condensate, liquefied natural gas (LNG) and so on. The third feature is transparency of a large portion of capital credits of the NIOC,” he said. The official added, “Capital credits allocated to NIOC are not notified totally at the beginning of the year and undergo major changes in the middle of the year. However, this year’s budget has been formulated in such a way that no major changes are expected in capital credits of National Iranian Oil Company.”