Zangeneh: Iran's Revenue from Oil and Gas Condensates Will Reach $41 Billion

Bijan Zangeneh, Iran's Minister of Oil, expressed optimism about rising oil prices on Monday, January 16, stating, "Our estimate is that by the end of the year, oil and gas condensate sales will reach $41 billion." In response to claims that some countries have blocked Iran's oil payments, he said, "I do not confirm this. No money is being blocked from us, and we receive all our payments." Official figures for Iran's oil revenues in 2015 have not yet been published, but according to OPEC estimates, Iran exported approximately $27 billion and 308 million in oil that year. In an interview with the state-run IRIB news agency, Zangeneh noted, "Of course, this does not mean we have received $41 billion because our receipts are delayed by several months." He added that "this year, in the past ten months, we have received $35 billion and 700 million," and expressed confidence that the remaining months of the year would yield good receipts that would reliably cover the government's budget. Global oil prices fell from over $105 in the first half of 2014 to below $30 in January of last year, but have risen again in recent months due to agreements among OPEC members and several non-OPEC countries to reduce daily production by nearly 1.8 million barrels since the beginning of this year, reaching around $55. Zangeneh emphasized that "the main reductions in production by OPEC and non-OPEC will be implemented based on their commitments," adding that this would help remove excess oil from the market and restore the current imbalance between supply and demand, pushing prices upward. Reuters recently reported that January data indicates OPEC members and other countries have not fully complied with their commitments, but the Iranian oil minister expressed confidence that oil-producing countries would adhere to their agreements. He stated, "Currently, prices are trending upward, which is largely a psychological effect of OPEC's decision, and from the beginning of January, the physical effects of OPEC's decision will also manifest in the market, and we hope this will help stabilize oil prices." Iran's crude oil production has increased from 2.8 million barrels per day during sanctions to over 3.7 million barrels. Additionally, Iran's gas condensate production has risen over the past year due to the launch of new phases in the South Pars region, currently reaching 560,000 barrels per day. Iran's oil exports have more than doubled compared to the pre-sanction period, and according to Iranian officials, this figure is currently around two million barrels per day. Iran also exports over 400,000 barrels of gas condensates daily. Gas condensates are a type of ultra-light crude oil produced from gas fields and have a relatively high price compared to other types of crude oil.