Iran boosting oil production capacity

Addressing inauguration ceremony of three petrochemical projects in Mahshahr, south of Iran, Qassemi said oil production from a number of oil fields would start in next two years. According to the oil ministry's website, Qassemi noted that gas production capacity would also soar to 1.470 billion cubic meters per day up to the end of fifth five year development plan in 2015. Elsewhere in his remarks, the minister said a final decision would be made on development of shared oil and gas fields up to end of first half of Iranian calendar year on 21st September 2012. Referring to satisfactory initiatives in oil industry in past years, Qassemi called simultaneous signing of development contracts of a number of South Pars gas field phases as courageous, technical and expertise stating in some phases high speed of constructing gas processing plants is unprecedented. "21 months after ground breaking, construction of gas processing plants has progressed by 62 percent physically which is a record," Qassemi noted. He also said that sanctions have created good opportunities for growth and development adding great leaps would be taken forward in current year in oil industry. Referring to implementation of 70 projects in oil industry this year, Qassemi said currently 11 thousand villages benefit from gas services which make up 57 percent of the total rural areas comparing it with Russia as the biggest holder of gas reserves which less than 50 percent of its villages have access to gas supply network. In connection to gathering associated gases, the official announced that by completion of two LNG factories and construction of four other units flaring associated gases will come to end in Khuzestan province and other oil rich regions in the country. "By implementing a plan in Kharg Island flaring 17 million cubic meters of gas will be brought under control on a daily basis," Qassemi noted.