Iran increases oil reserves by 25%: what would be the next step?

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On Sunday, Iran’s President Hassan Rouhani announced the discovery of a new 53 billion barrel oil reserve in the province of Cuzistan.

Iranian Oil Minister Bijan Zangeneh released more information yesterday about the discovery of the new oil field , saying it is the second largest field in the country after Ahvaz and is estimated to contain approximately 65 billion barrels.

During the multimedia presentation accompanied by a map, the Minister of Petroleum clarified that during previous explorations, since 2016, in the oil field in the province of Cuzistan were discovered 31.3 billion barrels, which, adding the newly discovered 22.2 billion, totals 53.5 billion.

“Iranian Minister of Petroleum, Bijan # Zangeneh :
Iran Names Newly-Discovered Oilfield # Namavaran .
The field is estimated to hold 53 b barrels of crude oil in place and there is a possibility of its southward continuation.
This is the second largest oilfield # discovered in Iran,” the statement said on Twitter.

Victory against US pressure

According to the Iranian minister, exploration of the new oil fields requires “cutting-edge technologies”, and the new discovery is an important victory against strong US pressure against the Persian oil industry.

The new discovery has caused Iranian reserves, which are already among the largest in the world, to increase by 25% to 210 billion barrels.

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Consequences of the new discovery

Western analysts have been in no hurry to comment on the implications the discovery could have on world energy markets, perhaps because Iran’s importance as a major oil exporter has been declining over the past year and a half.

European Business School oil market expert and economics professor Mamdouh Salameh stressed the importance of clarifying that the 53 billion barrel figure does not mean that Iran is able to extract and sell all that.

“The average global recovery factor is 34% -35%, meaning that only 18-18.5 billion barrels can be proven under the best of circumstances,” Salameh explained.

“An example of this could be the Azadegan Iranian oilfield, whose reserves were valued at over 25 billion barrels when it was discovered 20 years ago and ended up with only 5-6 billion barrels of recoverable reserves. started in 2012, yet it remains unexplored,” he said.

According to the expert, contrary to Western media allegations, US sanctions against Iran were unsuccessful in stopping Persian oil exports. In his view, the US sanctions policy was a “total failure.”

“China, India and Turkey, which absorb 66% of Iranian oil exports, have not stopped buying Iranian oil for a minute, but rather have increased volumes. The European Union, which accounted for 20% of oil purchases before the introduction of sanctions, continues to buy oil from Iran, albeit at a reduced level,” Salameh said.

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