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

Yinson Production Raises $1.46B to Refinance Agogo FPSO

Oil Climbs on US Storm Threat, Saudi Attack Risks

Iran Set to Keep Hormuz Shut Until Seven Demands Are Met

Qatar-Linked LNG Tankers Resume Hormuz Transits

Iran Restores Half of Damaged South Pars Gas Field Capacity

Saudi Oil Lifeline Shut After Attack as Red Sea Threat Grows

Technip Energies Nets Engineering Services Job for ADNOC Offshore

China's CNOOC Posts Record First-Half Profit

Iran Tightens Enforcement of Strait of Hormuz Transit Rules

Saipem Cuts Earnings Outlook as Middle East Costs Rise

Current News

Sunda Energy Gets Chuditch License Extension After Termination Warning

Finder Energy Selects Eneos’ Rig for Drilling Job off Timor-Leste

Inpex-Led Bonaparte CCS Project Gets Australian Offshore Storage Approval

Seascape Energy Expands Temaris Gas Acreage Offshore Malaysia

Oil Markets Brace for Years of High Prices as Iran War Drags On

Seadrill Secures Offshore Drilling Deals Across Four Countries

Jack-Up Rig Arrives in Indonesia for Conrad Asia Energy's MOPU Conversion

Murphy Oil Finds More Oil Offshore Vietnam, Côte d'Ivoire

Oil Caught Between Trump's Russia Supply Push and Middle East Risks

Eni Agrees Indonesian Gas Asset Sales to Pertamina and Medco

Magazine

Offshore Engineer Magazine

Subscribe for AOG Digital E‑News