Iran says planning to invest $120bn in petroleum projects

Paknejad said on Saturday that Iran will invest some $50 billion to increase its oil production to 4.6 million barrels per day (bpd) by 2028, from a current output of 3.3 million bpd.

He added that Iran’s natural gas production should also increase from 1 billion cubic meters (bcm) per day to 1.35 bcm per day in the next four years, adding that the country will need to invest more than $70 billion to hit the target.

He said investment in gas fields will also cover projects to boost pressure at South Pars, the world’s largest gas field which straddles the maritime border between Iran and Qatar in the Persian Gulf.

The minister stated seven pressure-boosting projects with a total investment of $18 billion will be executed in South Pars to help stabilize the output from the giant reserve.

Paknejad added Iran also seeks to increase its refining capacity by 0.5 million bpd per day until 2028 while trying to raise the output capacity of its petrochemical sector.

He said the development projects will be funded partly through finances provided by Iran’s sovereign wealth fund and partly through investment from foreign companies.

Iran’s plans to expand its petroleum sector come as the country is still subject to an extensive regime of US sanctions that bans the provision of technology and investment from abroad.

Since the sanctions were imposed in 2018, the Iranian Oil Ministry has mostly relied on domestic resources to develop the oil and gas fields in the country.