Skip to content Skip to Search
Skip navigation

Iran gives local companies $13bn to lift oil output

Iranian Oil Minister Javad Owji Iran oil contracts Shana/Mojtaba Mohammadgholi
The Iranian oil minister, Javad Owji, said that Iran has exported oil without a pause since last March
  • Target of extra 400,000 barrels a day
  • ‘Biggest deals in past decade’
  • Oil exports ‘without pause’ for past year

Iran has announced contracts with local companies worth more than $13 billion to boost its oil output.

The sanctions-hit country wants to develop six oil fields to add around 400,000 barrels per day (bpd) and will rely on domestic expertise, Iran’s official news agency, Shana reported on Sunday.

The agency said that the deals were the biggest in the past decade, without detailing how the projects would be funded.



The state-owned National Iranian Oil Company signed four contracts, including an $11.5 billion deal with Dasht Azadegan Arvand Oil and Gas Development Company to develop the Azadegan oil field. 

The field is in West Karoun, near Iraq’s Majnoon field. Iran estimates it contains around 32 billion barrels of oil in place.

Other development contracts involve the second phase of the Masjed Soleyman oil field (Iran’s oldest) and the Azar, Soumar, Saman and Delavaran oil fields.

Iran produced 2.99 million bpd of oil last year, 440,000 barrels more than in 2022, according to the International Energy Agency.

The increase made Iran  the world’s second-largest source of supply growth after the US. The country is expected to increase production by a further 280,000 bpd this year.

While neighbouring countries are also working on increasing their production capacity, Saudi Arabia has halted its expansion plans. The UAE has set a target to boost its crude production capacity to 5 million bpd by 2027. Kuwait aims to increase total production capacity to 4 million bpd by 2035.

Iran’s crude oil exports grew 50 percent last year to a five-year high of 1.29 million bpd. This was despite the sanctions imposed by Western countries on Iran’s oil and petrochemical exports, in response to its nuclear programme.

The data consultancy Kpler estimates that around 90 percent of Iranian crude exports are sent to China. The oil is transported by a “dark fleet” of tankers that falsify their locations to evade sanctions.

The Iranian oil minister Javad Owji said during a signing ceremony between National Iranian Oil Company and Dasht Azadegan Arvand Oil and Gas on Sunday that Iran has exported oil without a pause since last March.

“Although the country’s oil industry experienced a year full of ups and downs, we found new markets and exported oil,” he said.

Last week, Iran announced deals worth $20 billion with domestic companies to boost output from the offshore South Pars gas field, which it shares with Qatar in the Gulf.

Latest articles

Alstom's upgraded passenger transit system will help reduce emissions at King Abdulaziz International Airport

Alstom to upgrade driverless transit system at Jeddah airport

French train maker Alstom will upgrade the automated and driverless passenger transit system at King Abdulaziz International Airport, as the Jeddah airport aims to receive 114 million passengers by 2030. As part of the contract, Alstom will design, engineer, supply, integrate, test and commission a complete system upgrade of its Innovia automated people mover (APM) at the airport’s terminal […]

The Al Dhafra solar PV project. Ewec plans to increase Abu Dhabi’s solar production capacity to 7.6 GW by 2030

Abu Dhabi to generate 50% power from green sources by 2030 

Abu Dhabi plans to generate more than half of its electricity from renewable and clean energy by 2030, a senior Emirates Water and Electricity Company (Ewec) official has said. The state-owned entity is increasing the emirate’s solar energy production plan to 7.6 gigawatts (GW) by 2030, the UAE state-run Wam news agency reported, quoting CEO Othman Juma […]

Solar power panel

Cost of Xlinks Morocco-UK project balloons by a third

The cost of an ambitious project to deliver green energy from the south of Morocco to power homes in the UK has ballooned by more than a third to $30 billion. Xlinks First is behind the Morocco-UK renewables project, which would construct the world’s longest high-voltage direct current (HVDC) subsea power cable between the North […]

Waste To Energy Biogas plant with solar, battery station and E-car charging station

African renewables are ripe for investment, says Irena

Africa accounted for less than 1 percent of the new renewable energy sources added globally last year, and a conference in Abu Dhabi this week called on wealthy investors to help the continent achieve its targets. Amani Abu Zeid, commissioner for infrastructure and energy of the African Union Commission, told the International Renewable Energy Agency […]