Worse still was the forecast made last year by Mansour Daftarian, president of the Iranian Petroleum Institute, that in the absence of a major upgrade in the upkeep of the South Pars gas fields, by the end of 2026 daily gas production could drop to as low as 200 mcm/d, leaving a significant gap in the supply of gas for domestic heating and industrial consumption. According to the Iran source, in the period between early 2017 when Qatar lifted the longstanding moratorium on production from its own North Dome and when the U.S. unilaterally exited the Joint Comprehensive Plan of Action (JCPOA, of ‘nuclear deal’) in May 2018, Iran and Qatar had worked on ways of developing the reservoir without damaging its long-term potential, analysed in full in my latest book on the new global oil market order. “However, after the U.S. reimposed all the sanctions on Iran after it withdrew from the JCPOA, the local Iranian firms that took over didn’t have the skill, experience, technology, or machinery to take up where the foreign firms had left off, and they were also under pressure to drill more to monetise the gas,” he told OilPrice.com.
Author: Simon Watkins
Published at: 2025-04-07 22:00:00
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