Iran plans to start exporting new grade of crude by the end of the year

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Iranian oil industry is getting ready to introduce a new grade of crude to the global market by the end of the year, according to comments made by a senior official at the National Iranian Oil Company (NIOC) to the Reuters news agency.

Seyed Mohsen Ghamsari, who is director for international affairs at the state-controlled NIOC, explains that the production facilities near Kharg Island in the Gulf are expected to be constructed “sometime by the end of this year”.

“We are ready to negotiate the level of production as soon as we come back to the production before sanctions,” Ghamsari stated.

It is planned that the output from the finished facility will reach about 300,000 bpd during the first period and it may help Iranian production increase up to 4.0 million bpd in a few months (which is nearly 200,000 bpd higher than the current production level). Ghamsari reminded that output was a little higher than 4 million bpd before the sanctions that were removed earlier this year over Iran’s controversial nuclear program.