The Irani government has announced a series of investments aimed to increase the national oil and gas production to reach the goals established in the country's Seven National Development Plan (2022-2026). Estimating an investment between US$110-120bn to increase its oil and gas production capacity, Iran expects to prevent the decline of its national production.
About US$75bn of the investment would be used to increase Iran's crude gas production capacity, to achieve a volume of 1.35 bcm/d of gas. Among the projects to increase gas volumes are seven pressure-boosting projects, each with about US$2.5-3bn in operating costs, on the South Pars natural gas field, for a total investment of US$18bn expected to take about five years of construction. Iran plans to invest about US$50bn to reach a production capacity of 4.6 mb/d of crude oil before the end of the Seventh Development Plan’s period (2027). It also aims to increase its refining capacity up to 500 kb/d.
Iran’s economy relies heavily on oil and gas revenues, as a result of US sanctions. At the end of 2023, the country had the world’s second largest gas reserves (34,000 bcm) and the third largest oil reserves in the world (28 Gt).
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