Will develop oil industry despite US sanctions: Iran’s minister

TEHRAN (REUTERS): Iranian Oil Minister Bijan Zanganeh has asserted that the country is determined to develop the oil industry in spite of US sanctions.

The statement came during the signing ceremony of a $294 million contract between the National Iranian Oil Company and Persia Oil, an Iranian firm.

The contract was signed to develop the Yaran oilfield that is shared with neighbouring Iraq’s Majnoon field. The agreement aims to produce 39.5 million barrels of oil from the Yaran oilfield in Iran’s Khuzestan province.

In a televised speech today (Saturday), Iran’s minister said, “We will not surrender under any circumstances. We have to increase our capacity so that when necessary with full strength we can enter the market and revive our market share.”

The United States reinstated economic sanctions on Iran after President Donald Trump abandoned a landmark nuclear deal in May 2018. Due to this, Iran’s oil exports are estimated at 100,000 to 200,000 barrels per day, down from more than 2.5 million BPD that Iran shipped in April 2018.

Earlier in 2019, Iranian President Hassan Rouhani said that Tehran will never hold bilateral talks with the United States but if it lifts all the sanctions it reimposed on Iran it can join multilateral talks between Iran and other parties to the nuclear agreement.