Iran will develop oil industry despite US sanctions, minister says

Iran says it will 'not surrender' to US sanctions and will work on increasing its oil industry's capacity.

2 min read

11 July, 2020

The official's speech came ahead of a $294 million oil deal [Getty]

Iranian Oil Minister Bijan Zanganeh said on Saturday his country is determined to develop its oil industry in spite of US sanctions imposed.

"We will not surrender under any circumstances ... We have to increase our capacity so that when necessary with full strength we can enter the market and revive our market share," Zanganeh said in a televised speech, according to Reuters.

The official's speech came ahead of a $294 million deal between the National Iranian Oil Company and Persia Oil & Gas to develop the Yaran oilfield.

According to Reuters, the agreement will produce 39.5 million barrels of oil from the Yaran oilfield in Khuzestan province.

Read also: US seeks to seize Iran oil cargoes bound for Venezuela

Iran's currency has been in free-fall since 2018 – when the US withdrew from a 2015 nuclear pact between Tehran and six global powers, and reimposed sanctions.

Iran's oil production and exports have diminished as a result of the sanctions. According to estimates, Iran exports 100,000 to 200,000 barrels per day, down from over 2.5 million bpd that it shipped in April 2018.

Last month, the US sanctioned five ship captains after Iran delivered oil to Venezuela, also under US sanctions.

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