Mehr: "Zangeneh's Order to Increase Oil Production and Exports"

Despite the announcement by the CEO of the National Iranian Oil Company regarding no change in oil production until sanctions are lifted, Mehr news agency claims that Iran's Minister of Oil has ordered an increase of 500,000 barrels in daily oil production and exports. The report claims that "with the issuance of a directive by the U.S. government until the full implementation of the nuclear agreement, Iran intends to increase its oil exports by 500,000 barrels within the next 7 days." Several other news sources in Iran have echoed this report, but none provided concrete evidence linking this directive to the U.S. government, only stating that such a directive was issued by the U.S. Treasury and State Departments, detailing new methods for purchasing oil and petrochemical products from Iran before the finalization of Western sanctions against the country. Mehr news agency also reported on Tuesday, August 20, that Bijan Zangeneh, Iran's Minister of Oil, issued a letter to the ministry's managers ordering an increase of 500,000 barrels in Iran's daily oil production and exports. This report comes less than 10 days after the Minister of Oil predicted in a television program that all sanctions against Iran would be lifted by late November, adding that "one month after the lifting of sanctions, Iran's oil production capacity will increase by one million barrels." Meanwhile, Bijan Zali Pour, CEO of the National South Oil Company, Iran's largest oil operating company, announced that the company is ready to increase "crude oil production to the maximum level desired by the Minister of Oil" within three days. However, Rokneddin Javadi, CEO of the National Iranian Oil Company, reacted to reports about the 500,000 barrel increase in Iran's oil production within the next week, stating that the country's oil production will not change until sanctions are lifted. According to the state news agency IRNA, Mr. Javadi emphasized that any increase in Iran's oil production is "conditional" on the lifting of sanctions. The CEO of the National Iranian Oil Company had previously stated that the increase of 500,000 barrels in Iran's oil production and exports would require 6 months to a year due to market supply and demand conditions. Before international sanctions, Iran exported 2.5 million barrels of oil daily and produced about 3.7 million barrels, but after sanctions, Iran's oil exports dropped to about one million barrels per day. Nevertheless, the Minister of Oil stated on August 11 that one month after the lifting of sanctions, Iran's oil production capacity would increase by one million barrels, allowing Iran to return to a production level of 3.9 million tons, equivalent to pre-sanction levels. Bijan Zangeneh also reported on Wednesday, June 3, that in a letter to the Organization of the Petroleum Exporting Countries (OPEC), he announced that the Islamic Republic would restore its oil production to pre-sanction levels "in a very short time" after the lifting of Western sanctions. According to some analysts, the increase in Iran's oil exports may lead to tensions within OPEC, the main oil-producing organization in the world. Previously, the French news agency, citing forecasts by Charles Robertson at Renaissance Capital investment bank, reported that Iran's oil exports could potentially reach a ceiling of 2.4 million barrels per day by next year. At the same time, the agency predicted tensions between Arab oil-rich countries in the Persian Gulf and countries like Iran, Venezuela, or Algeria that need to increase production.