Tehran- In light of increasing talk about a possible Israeli strike on oil facilities in Iran, talk about the oil and gas industry, which is of strategic importance in Iran, has returned to the forefront.
At a time when Iran is one of the largest countries producing and exporting oil and gas, the international sanctions imposed on it have severely affected this vital sector.
Despite this, Iran continues to produce oil and gas through “shadow fleets” to bypass US sanctions, as its economy relies heavily on energy exports.
Expectations of rising prices
Hamid Reza Shikouhi, an expert in oil and gas affairs, says that Turkey and Iraq are the most important importers of Iranian gas, and this shows the importance of the matter, in addition to the fact that gas is the most important energy component in Iran at the levels of household consumption, factories, and power stations.
In an interview with Al Jazeera Net, Shokohi added that nearly half of Iran’s oil production is exported, most of it to China, and thus targeting Iranian oil and removing more than 1.5 million barrels of oil from the markets affects global prices.
On the other hand, he believed that any targeting of Iranian oil and gas would negatively affect the Strait of Hormuz, through which a large volume of Gulf countries’ exported oil passes, and this is a very important matter.
Shokohi explained that part of Iran’s oil inside the country is converted in refineries into gasoline and diesel and is consumed internally, and this will of course be affected if Israel launches a strike on the Strip.
He noted that power stations in Israel are part of Iran’s target bank. If Tel Aviv targets Iranian oil and gas, Tehran is expected to respond in the same way, and he expects that this matter will make Israel reconsider its calculations.
1- The volume of oil production in Iran
According to the Iranian Ministry of Oil, with more than 160.12 billion barrels of oil, Iran is the third owner of crude oil reserves in the Organization of the Petroleum Exporting Countries (OPEC).
According to BP statistics, Iran occupies fourth place among the largest countries in terms of oil reserves in the world, after Venezuela, Saudi Arabia, and Canada.
2- Daily oil production in Iran
Before the US sanctions that were re-imposed in 2018, Iran was producing about 3.8 million barrels per day, according to a report by the International Energy Agency, but after the sanctions were tightened again, production decreased significantly, reaching about 2.6 million barrels per day in 2023.
According to the agency’s latest report, Iran’s production in August 2024 amounted to about 3.42 million barrels per day.
3- The most important oil fields
Here we review the most important oil fields in Iran:
- Ahvaz fieldThe largest oil field in Iran, producing about 800 thousand barrels per day, is located in the city of Ahvaz in southwestern Iran. It was discovered in 1958 by the then joint oil company between Iran and England.
- Kajasaran fieldIt is the second largest oil field in Iran, after the Ahvaz field, and contains 52 billion barrels of existing reserves and 23 billion barrels of recoverable reserves.
This field was established in 1939 by the British Iranian Oil Company, and produces 480,000 barrels of crude oil per day. It is also located in southwestern Iran, 200 kilometers from the city of Ahvaz.
- Maroon fieldMaroun oil field is the third largest oil field in Iran, containing about 46 billion barrels of crude oil reserves. In 1963, the Iranian Oil Exploration and Production Company discovered the Maroun oil field.
The field produces an average of 52 thousand barrels of crude oil per day, and is located in the city of Ahvaz, also in the southwest of the country.
- Azadegan fieldAzadegan oil field is located in the city of Dasht Azadegan, adjacent to the city of Ahvaz. It is the fourth largest oil field in Iran, containing 23 billion barrels of crude oil reserves.
- Aghajari field: The Aghajari oil field is located in the city of Aghajari, near the city of Ahvaz. It is the fifth largest field in Iran, containing about 28 billion barrels of crude oil reserves.
In 1936, the existence of economic reserves of oil and gas in this field was proven by the British Iranian Oil Company, and the production of crude oil from the Aghajari field in 1976 amounted to more than 1.1 million barrels of crude oil, but over time its production decreased, and the production capacity is This field currently has an average of 170 thousand barrels of crude oil per day.
4- The most important gas fields
1- South Pars FieldIt is considered the largest gas field in the world. It is located in the Gulf region and is shared with Qatar. 33% of it is located in the territorial waters of Iran (Bushehr Governorate) and about 67% of Qatar.
The size of the natural gas reserve in the South Pars field (which in Qatar and in the Arab countries is called the North Gas Field) is estimated at about 51 trillion cubic meters, and its extractable reserve is estimated at 36 trillion cubic meters, and an average of about 1.2 billion cubic meters of natural gas is extracted daily. Currently from this field.
The reserve of the Iranian part of the field amounts to 13.3 trillion cubic meters of gas on site and 19 billion barrels of gas condensate (of which 9 billion barrels can be extracted). It also contains 50% of the Iranian gas reserve and 8% of the global gas reserve.
2- North Pars Field: The North Pars gas field is located 120 kilometers southeast of the city of Bushehr in Gulf waters, and the field’s reserves amount to 59 trillion cubic feet.
3- Kish field: This field is located 30 kilometers east of Lawan Island, in the waters of the Gulf. The expected volume of gas in the field is about 48 trillion cubic feet with a recovery factor of 75%, and the volume of gas condensate in the expected situation is estimated at about 514 million barrels.
5- Oil and gas production stations
- Southern Pars Gas Complex: It includes several development stages, and is responsible for the bulk of gas production in Iran.
- Caron facilitiesIt includes a group of production stations that manage the main fields in Khuzestan Province, known in the Arab world as Ahvaz.
- Abadan station: One of the oldest oil production stations in Iran, and it still plays a major role in production despite its age.
6- Refining facilities
Iran has a group of strategic refineries that contribute to converting crude oil into final products such as gasoline and diesel, which are as follows:
- Abadan refineryIt is considered the oldest in the Middle East and one of the oldest in the world. It was established in 1912 after 3 years of work by the British Iranian Oil Company, and its production capacity is about 500 thousand barrels per day.
- Isfahan Refinery: One of the major refineries, producing about 375 thousand barrels per day.
- Bandar Abbas Refinery: Production capacity of about 350 thousand barrels per day.
- Tehran refinery: A production capacity of about 250 thousand barrels per day.
6- Proven reserves
Iran’s reserves of recoverable liquid hydrocarbons (crude oil, condensates and gas liquids) amount to 160.12 billion barrels as of 2019.
Extractable reserves of natural gas amount to about 34 trillion cubic meters, according to the latest report of the Iranian Ministry of Oil and Gas.
On the other hand – and according to an OPEC report – Iran ranks second after Russia, with reserves amounting to 33.72 trillion cubic metres.
According to BP statistics, Iran ranks first in the world with reserves amounting to 33.5 trillion (17.96% of global reserves).
According to BP statistics, Iran also possesses 9.3% and 19.5% of the world’s and the Middle East’s conventional oil reserves, respectively.
Because it is located in an oil-rich region, it occupies an important position in the world as the largest holder of oil out of total hydrocarbon resources from conventional oil and gas.
Challenges
The sanctions imposed on Iran caused a reduction in production capacity and a decline in foreign investments, which led to difficulty in modernizing old fields and infrastructure.
Despite the tightening sanctions, Iran continues to export oil in many ways, as it relies on shadow fleets to transport crude, using oil tankers that change their flags or turn off their tracking systems, which makes tracking Iranian exports difficult.
As for the main markets for Iranian oil, despite the embargo, Iran continues to export quantities of oil to China and some other Asian countries, but in a volume less than its full capacity.
According to the Iranian Mehr Agency, an analysis of Iranian customs statistics shows that the value of oil exports from March until last September amounted to the equivalent of $23.2 billion, despite the ban.
