TEHRAN – For the Iranian oil industry to boom in the Sixth National Five-year Development Plan (2016-2021), a colossal investment of $185 billion is deemed essential, according to an official with the Iranian oil sector.

Iranian Deputy Oil Minister for Commerce and International Affairs Amir Hossein Zamaninia said the fund is required for implementation of projects in producing oil and gas condensates, optimizing fuel consumption and promoting energy efficiency, the SHANA News Agency reported.

Zamaninia made the remarks in his opening address at the Iran Offshore Projects Outlook 2015. The two-day seminar kicked off on 27 October in the Netherlands with top Iranian oil decision makers and foreign firms in attendance.

The Iranian official saw an enhancement in the quality of oil and gas industries such as in the gas-engineering services and also less dependence on oil proceeds as positive outgrowths of the so-called sanctions era.

“In the post-sanction era, Iran’s economic ties with the world will develop,” Zamaninia highlighted.

According to Iranian Oil Minister Bijan Namdar Zanganeh the new model of Iran’s oil contracts, known as the Integrated Petroleum Contract (IPC), will be inaugurated soon in this year, based on which oil contracts with Iran will be inked in the post-sanctions era.

Western sanctions have cut Iran’s oil exports by more than half to about 1.1 million barrels per day (bpd) from a pre-2012 level of 2.5 million bpd. 

In April, Zanganeh said it would take just a few months for the country to increase its oil production to pre-sanction levels.  

AK/