Iran’s Oil Minister Bijan Namdar Zanganeh attends a press conference ahead of the 166th Opec ordinary meeting at its headquarters in Vienna, Austria on November 27, 2014. Zanganeh has urged other Opec members to make room for Iran when it raises output after sanctions are lifted as a result of last month’s nuclear pact with world powers. Iran’s oil industry needs $100bn to $500bn over the next five years, state-run news agency IRNA reported on August 3, citing Saeed Ghavampour, general manager of the oil ministry’s strategic planning.

Bloomberg/Tehran


Iran, the world’s fifth largest crude producer, has set aside almost nothing for oil investments this year because of the drop in prices.
Money put into the industry dropped from about $40bn for 2011 and 2012 combined to $6bn last year, Iran’s Oil Minister Bijan Namdar Zanganeh said yesterday, according to the ministry’s news website Shana.
Brent crude prices slumped below $45 a barrel on Monday for the first time since 2009.
Iran’s oil industry needs $100bn to $500bn over the next five years, Iran’s state-run news agency IRNA reported on August 3, citing Saeed Ghavampour, general manager of the oil ministry’s strategic planning. Oil producers such as BP and Royal Dutch Shell have expressed interest in developing Iran’s reserves, the world’s fourth-biggest, when sanctions are removed following last month’s nuclear agreement with world powers.
“Because of the drop in the price of oil, almost nothing has been set aside for investment in the oil industry this year,” Zanganeh said, according to Shana.
Iran pumped 3.6mn bpd last year, down from 4.4mn in 2011, according to BP data. The US was the biggest producer at 11.6mn bpd, followed by Saudi Arabia at 11.5mn, Russia at 10.8mn and China at 4.2mn .
A global oil surplus estimated by Iran now at 3mn bpd has been maintained nine months after Saudi Arabia pressed the Organisation of Petroleum Exporting Countries to hold production in the hopes that rivals would cut first. On Monday, Iran backed calls for an emergency Opec meeting even as it repeated plans to boost its own production as soon as international sanctions end.
Opec is pumping at near record levels, even amid a global glut of crude. Algeria wrote to others in the 12-member group saying they should consider measures for reviving oil prices and stabilising the market, two delegates familiar with the request said last week.
Opec produced 32.1mn bpd of crude in July. Zanganeh has said that other Opec members should make room for Iran when it raises output after sanctions are lifted as a result of last month’s nuclear pact with world powers.
Iran pumped 2.85mn bpd in July, down from 3.6mn at the end of 2011, data compiled by Bloomberg show.