Iran expects increase in oil production

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TEHRAN, Aug. 20 (UPI) -- Oil production in Iran should increase within the next two years through the development at least one oil field in western Iran, an official said.

Mehdi Fakour, managing director of the Central Iranian Oil Fields Co., told the Oil Ministry's news service that production was scheduled for the Soumar field in western Iran.

"Based on our planning, oil production will reach 5,000 barrels per day in first phase and 10,000 barrels per day in the second phase," he said.

Production, he added, should begin within two years.

The Organization of Petroleum Exporting Countries, in its August report, reported average overall member state production at 31.2 million barrels of oil per day, down 160,000 bpd in part on decreases from Iran, Saudi Arabia, Libya and Angola.

Sanctions pressure from U.S. and European governments have affected Iran's crude oil consumer base. Domestic oil demand in Iran, however, increased in May 7.9 percent, said OPEC, in large part because of an increase in gasoline consumption.