Iran is expected to add 500,000b/d of oil supply within a year from its existing oilfields, but developing new fields would take time, the Head of the International Energy Agency (IEA), Fatih Birol, told Reuters.
Iran, previously OPEC’s second-largest exporter, would need to prove that the investment conditions were profitable to the international investors, IEA’s Executive Director stated. He also added that “it was misleading to believe that there would be a huge amount of new Iranian crude and natural gas production entering market in the short term,”
In addition, Birol said “it would take some time in terms of developing new oil fields, finding transmission routes and having the necessary market conditions,” as quoted by The Economic Times.
Birol’s estimate of Iran’s supply increase from existing oilfields is in line with previous market estimates, however, Iranian oil officials were hoping for a quick rebound in oil sales to European clients. Iran’s exports of 800,000b/d to Europe accounted for more than 30% of country’s overall crude shipment to the continent before the EU imposed sanctions in 2012 over Tehran’s nuclear program.