Iran: New Sanctions Won't Stop its Oil Industry

The Iranian oil industry will continue to develop even if the United States pulls out of the 2015 Iran nuclear deal, and Tehran would see the accord as operational as long as it can sell oil, the Oil Ministry website quoted senior officials as saying on Monday.

U.S. President Donald Trump has threatened to pull out of the Iran deal by not extending sanctions waivers when they expire on May 12 unless European signatories of the accord fix what he calls its "flaws". "They cannot stop Iran. Our oil industry's development will continue even if new sanctions are imposed on Iran," SHANA quoted Gholamreza Manouchehri, deputy head of the National Iranian Oil Company, as saying. Sanctions imposed on Iran in early 2012 by the United States and European Union over its nuclear programme cut Iran's crude exports from a peak of 2.5 million barrels per day (bpd) before the sanctions to a little more than 1 million bpd.

But Iran re-emerged as a major oil exporter in January 2016 when international sanctions were suspended in return for curbs on Iran’s nuclear programme.

Deputy oil minister Amirhossein Zamaninia also said that Iran considered the deal alive "if we can continue to sell our oil and its products", even if the United States pulls out. "We have learned from decades of sanctions how to sell our oil," he said.

The Organization of the Petroleum Exporting Countries (OPEC), Russia and several other producers began to reduce oil output in January 2017 in an attempt to erase a supply glut and prop up prices. They have extended the pact until December 2018 and meet in June to review policy.

"We back OPEC's decisions under normal circumstances ... But Iran always gives priority to its own interests ... whoever produces more oil has more power in the market," Zamaninia said.

Iran says it aims to raise its crude oil production capacity to 4.7 million bpd within the next four years.

Writing by Parisa Hafezi

Iran: New Sanctions Won't Stop its Oil Industry

Related Stories

CNOOC Sees 11% Profit Growth in 2024 Driven by Record Oil Production

MODEC and Samsung Team Up to Install Carbon Capture Tech on FPSO

Japan's Mitsui Eyes Alaska LNG Project

European LNG Imports Up with Asian Influx

VIDEO: AIRCAT Crewliner takes Shape to Service Offshore for TotalEnergies Angola

ADES’ Fourth Suspended Jack-Up Rig Gets Work Offshore Thailand

Shell Shuts Down Oil Processing Unit in Singapore Due to Suspected Leak

ABS Approves Hanwha Ocean’s FPSO Design

AI & Offshore Energy: The Higher the Stakes, the More Value AI Creates

Floating LNG Conversion Job Slips Out of Seatrium’s Hands

Current News

Eneos Scoops Jack-Up Drilling Contract Offshore Vietnam

Vietnam to Open Bidding Round for Three Offshore Oil Blocks

VARD Snags $125M Shipbuilding Deal for Subsea Construction Vessel

Mitsui’s STATS Lands Malaysian Pipeline Isolation Job

INEOS Wraps Up Acquisition of CNOOC’s US Oil and Gas Assets

Fire at Petronas Gas Pipeline in Malaysia Sends 63 to Hospital

Japan’s ENEOS Xplora, PVEP Ink Deal for Vietnam Offshore Block

CNOOC Makes Major Oil and Gas Discovery in South China Sea

Valeura’s Assets in Gulf of Thailand Remain Operational After Earthquake

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Magazine

Offshore Engineer Magazine

Subscribe for AOG Digital E‑News