CEIC Data Blog

Iran Discovers Huge Oil and Gas Reserves

 

News @lert: The National Iranian Oil Company discovered last June a huge crude oil and gas reserves in the region of Assaluyeh in the southern part of the Islamic republic. After drilling the first discovered well in the gas-rich area and examining geological data, it was confirmed that the region holds huge reserves of crude oil, as well as natural gas. Officials in the National Iranian Oil Company announced after the discovery that the region holds about 260 billion cubic meters of natural gas. Information disseminated by the company reveals that the volume of oil reserves discovered in the region far exceeds initial expectations.

Iranian reserves of crude oil are forecasted to grow by one billion barrels after this discovery.

According to 2009 figures, Iran has 137.6 billion barrels of proven oil reserves and 29.61 trillion cubic meters of proven gas reserves where the South Pars gas field –the largest gas field in Iran- reserves are estimated to be 14 trillion cubic meters of gas and 18 billion barrels of gas condensates. Iran has the world’s third largest oil reserves after Saudi Arabia and Canada and second largest gas reserves after Russia.

Crude Oil and Natural Gas Reserves
Iran Oil Gas
Chart provided by: CEIC Data

This discovery came at a time when the Ministry of Power announced its concern about natural gas shortages at Iranian power plants where 15 power plants are currently without gas and are running on liquid fuel; but liquid fuel reserves are also running low. The government had predicted that gas consumption would naturally fall with the removal of government subsidies, but the National Gas Company reported an increase in daily consumption of 585 million cubic meters, despite the higher prices. Thus, the discovery of the reserve is expected to solve the shortage problems and face the increase in the consumption.

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