Iran ready to support production cuts extension, sees positive signals

Iran ready to support production cuts extension, sees positive signals

May 01, 2017
2 min read
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Iran is seeing positive signals from OPEC and non-OPEC members of an agreement to extend production cuts, and is ready to support a possible pact, its oil minister said.

“If all the OPEC members or a majority of OPEC members support this position, we will support this issue and we would go along other countries and members,” Iranian Minister of Petroleum Bijan Zangeneh said about production cut extension, cited by Shana news agency.

“We are seeing positive signals for extension of the OPEC cut plan,” Zangeneh added.

The Organization of the Petroleum Exporting Countries (OPEC) meets in May to discuss oil supply policy. Oil prices fell last week though they closed higher on Friday on growing hope that OPEC might agree to extend production cuts long enough to reduce a global crude glut.

He said the level of Iran’s crude oil production is close to 3.8 million barrels per day and increasing. “Because of our compliance and commitment to the agreement that we signed, we keep the level of production at the quota that we have based on the OPEC agreement.”

Separately, Zangeneh said Iran is in ongoing talks with international oil and gas companies for the development of the country’s resources and rehabilitating related infrastructure.

“We are discussing seriously with TOTAL and other international companies like Lukoil and Pertamina and many other foreign companies… We must first discuss and agree a master development plan and then discuss financials and contractual issues,” he added. 

“It (reaching agreements) needs time but we are going ahead well and the progress is acceptable.”