Iran Inks Billions in Contracts to Boost Oil Production Amid Sanctions


Iran has recently finalized contracts worth billions of dollars with domestic companies to enhance its oil production despite Western sanctions. The deals, considered Iran’s “biggest oil contracts in the past decade,” aim to increase daily oil output by 350,000 barrels per day, according to Shana, the official oil industry news agency.

In a ceremony broadcasted on state TV, Iran’s oil ministry and local businesses signed agreements totaling $13 billion. These contracts focus on leveraging domestic expertise to bolster production in key fields, including the Azadegan field in Khuzestan province bordering Iraq and the Masjed Soleyman field, which dates back to 1908 and is the oldest in the Middle East.

The contracts come as Iran faces ongoing challenges from Western sanctions imposed after the United States withdrew from the nuclear deal in 2018. Despite these hurdles, Iran is determined to increase production, with Oil Minister Javad Owji projecting a rise to 3.6 million barrels per day by the end of the Persian year in March, and further to four million barrels per day in the new Persian year.

Additionally, Iran recently awarded $20 billion in contracts to local firms for boosting production from the South Pars gas field, shared with Qatar in the Gulf. These developments underscore Iran’s resilience in its oil sector, maintaining its position as the world’s seventh-largest crude oil producer and holding the third-largest proven oil reserves globally.

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