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Other Western companies are also gradually resuming transactions with Iran. BP purchased a cargo of oil from Iran last month, and Royal Dutch Shell also signed a preliminary agreement to open a petrochemical plant in Iran. However, Iran's goal of vigorously revitalizing the oil industry has not yet been truly realized.
Iran has stated that it needs US$100 million in foreign investment to achieve its oil industry goals, one of which is to increase crude oil production to 10,000 barrels per day within ten years. If achieved, Iran will become the fourth largest oil producer after Russia, Saudi Arabia and the United States. Iran's current crude oil production is about 10,000 barrels per day, and this year's goal is to increase production to 10,000 barrels per day.
According to the Wall Street Journal, the agreement with Total will help Iran increase natural gas production. The South Pars gas field is currently occupied by Iran and Qatar, with reserves of 100 million cubic meters, accounting for % of the world's known reserves. Estimates show that Iran has the world's largest natural gas reserves, but its production capacity and export facilities are limited. Iranian officials say they want to become a major exporter of natural gas to Europe.
Analysts believe that it is a wise choice for the Iranian government to lock its first contract with Western companies in the field of natural gas. After all, natural gas is not as politically controversial as oil.
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Contact Person: Manager Zhang