TEHRAN - Director of National Iranian Oil Company (NIOC) Exploration Department Saleh Hendi has said that exploration operation in the country should continue in order to ensure the increase in oil production.

“Exploration should not be stopped in the face of sanctions or oil price fluctuations, as continued exploration activities will be a major driver of increased oil production in the future,” Hendi told IRNA on Monday.

Ongoing exploration activities will be the mainstay of future oil production growth, he stressed.

The director of the exploration of the National Iranian Oil Company noted that increasing the country’s oil reserves is in itself a lever of power that can be used in trade bargaining and obtaining OPEC quotas.

Emphasizing that the share of exploration in the budget of the National Iranian Oil Company is small, he said: "The exploration budget is only about five percent of the total budget of the National Oil Company."

He noted that exploration programs in NIOC do not change when oil prices fluctuate since the company’s view on national resources is long-term.

"About half of the world's untapped oil and gas reserves are located in West Asia, and it is estimated that about one-fifth of the world's undiscovered oil and gas reserves are concentrated in this region," he said.

Exploration of oil outside West Asia faces major technical challenges and is therefore associated with high costs due to the nature and origin of these resources, the official added.

Hindi further said that the studies on the trend of proven oil reserves indicate a continuous increase in proven oil reserves of Iran, Saudi Arabia and Iraq in the 20-year period ending in 2018.

EF/MA