Guardian: Iran nuclear deal: world powers reach historic agreement to lift sanctions. Iran has an estimated 158 billion barrels of proven crude oil reserves which is 10% of worlds crude oil reserve and 13% of OPEC. 70% of Irans crude oil reserves are located onshore and the remained part mostly located in the Persian Gulf. At the end of 2011 and during 2012 United States and the European Union enacted sanctions against Iran. These sanctions affected Iranian energy sector more than any other previous sanctions. The result of the sanctions was lowering the Irans ability to sell oil, due to this 1.0 million b/d decrease of crude oil and condensate exports happened in 2012 comparing to the previous year. Iran produced 3.7 million b/d crude oil in 2011 but after sanctions posed in 2013 the production decreased to 2.7 million b/d. its good to mention that in 1976 and 1977 the top capacity of oil production was 6.0 million b/d for most of period. That time by involving foreign companies and new technologies the highest capacity was available, however, sanctions, old industries, and high rate of mature oil fields has prevented a return to such production level. By planning for the after lifting sanctions phase, National Iranian Oil and Gas Companies are preparing new framework of joint-venture contracts with foreign investors and companies, the aim of new framework is to attract foreign investment. There are many exploration and upstream projects that after compliance can provide an increase in crude oil production. Iran ministry of petroleum claimed that the oil production could increase its capacity a million barrels daily, just shortly after sanctions lifted. Although removing sanctions will take months but observers believe that Irans claim could emerge as reality.
|Project||Developer||Plateau output (thousands b/d)||Est. plateau year|
|Yadavaran phase 1||Sinopec||85||2016|
|Yadavaran phase 2||Sinopec||95||2019-20|
|Yadavaran phase 3||Sinopec||120||post 2020|
|Azar phase 1||NIOC subsidiaries||30||2016|
|North Yaran||Persian Energy||30||2016|
|South Yaran||NIOC subsidiaries||55||2018|
|North Azadegan phase 1||CNPC||75||2016-17|
|North Azadegan phase 2||CNPC||75||2019|
|South Azadegan phase 1||no developer||150||NA|
|South Azadegan phase 2||no developer||110||NA|
|South Pars (oil layer) phase 1||PEDCO||35||2017-18|
Increases in production together with sanction lifts and starting the new projects as seen in the above table will lead to oversupply in oil world market; so excessive supply with current world conditions will cause prices decline.