Speaking at a press conference on the sidelines of the 29th
International Oil, Gas, Refining and Petrochemical Exhibition, Hamidreza Bovard
revealed that several key flare gas recovery projects in West Karoun and the
southern hub of Asaluyeh are nearing completion.
“A major project in West Karoun is expected to become
operational within a month. It will capture large volumes of associated gas
that are currently being flared,” Bovard said. He added that three related
projects under the “2020” initiative are also progressing, with formal
inauguration of one significant unit expected soon.
On the East Karoun front, Bovard noted two to three
large-scale projects are advancing well, alongside initiatives to supply
surplus gas directly to petrochemical plants. A groundbreaking resolution has
also been passed to sell underground gas at a base price of zero, paving the
way for deeper private sector involvement. A report has been submitted to the
president, and the plan awaits final approval by the Supreme Economic Council.
“If these projects proceed as planned, daily gas output
could increase by four to five million cubic meters—possibly more,” Bovard
said, projecting partial commissioning by late May or early June.
Record Gas Output Despite Harsh Winter
Despite severe winter conditions, Iran broke its gas
production record 14 times last season, with daily output reaching 1.106
billion cubic meters, Bovard said. However, he cautioned that higher production
should not lead to excessive consumption.
Bovard, who also serves as deputy petroleum minister, said
oil output rose by more than 150,000 barrels per day (bpd) in the last Iranian
calendar year (ended March 2025), with a new goal of adding up to 250,000 bpd
in 2025. Achieving this target will require specialized drilling rigs for both
onshore and offshore operations.
To this end, NIOC has asked domestic companies to import
rigs under long-term contracts with pre-financing. “We need over $1.5 billion
in investment and invite private sector participation,” he said.
Energy Exports and Sanctions Strategy
On the impact of sanctions, Bovard acknowledged tougher
restrictions but said Iran has maintained oil exports by innovating in
transport logistics and diversifying maritime routes. “LPG demand remains high
globally, but supply is currently limited,” he added.
He also outlined three guiding metrics for boosting oil
production: installed capacity, actual output, and planned targets. “The closer
these figures align, the more realistic and attainable our growth objectives
become,” he said.
New Oil Contracts, Abu Zar Field, and Legal Updates
Bovard announced that several important oil contracts are
scheduled to be signed on Saturday, stressing that mobilizing domestic capital
can activate other economic sectors and bring the country closer to the 8%
growth target outlined in its Seventh Development Plan.
He said production has resumed at the Abu Zar oil field
after technical setbacks, with controlled output and plans for new investments
underway.
Regarding the case of Babak Zanjani, a businessman convicted
of massive oil-related fraud, Bovard said his assets remain under judicial
supervision and that the Central Bank and Judiciary are actively pursuing the
recovery of public funds. Further updates will be announced as progress is
made.