NIOC: Oil production to increase to 88m bpd in 2008


Ahvaz : Managing Director of the National Iranian Oil Company (NIOC) Seyfollah Jashnsaz said here Wednesday that given the growing trend of global demand for oil, it is predicted that the oil production would increase to 88 million barrels per day in 2008.

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Jashnsaz, who is also deputy oil minister, made the remark in the inaugural ceremony of the National Congress on Iran’s Excavation Industry in Ahvaz, adding that the constant increase of oil prices in international markets as a result of an increase in global demand will cause further growth in prices.

He argued that the current oil price is not real, adding that the current prices are far from real expected value of the strategic energy.

According to assessment by experts, oil and gas will play key role in providing global energy and economy for many years, he said, noting that investment in excavation industry in Iran is important to guarantee expansion of production and stabilize oil supply.

Pointing to the role and importance of excavation industry in supplying upstream industries, the key for developing oil fields and the main ring in production of the energy is excavation industry, he said.

He further referred to the need of oil producing countries to 450 new excavations by 2010, adding that respecting the increase including in the Middle East, Iran can provide the world with the experience, know-how, technology and capability to build facilities and drilling rigs.

The deputy oil minister also said that with implementing 150 excavation operation of oil wells in 2007, Iran stood first in excavation industry in the world, adding that the country needs more 120 drilling rigs.

The NIOC is scheduled to meet the demand of the country through enhancing private sector for more participation and investment in excavation industry, he said, noting that it has invested dlrs 1.5 billion in purchasing 10 marine drilling rigs and 23 land ones over the past two years.