Iran sees oil reserve potential growing with new discoveries

April 24 (UPI) -- Discoveries in the Persian Gulf of petroleum reserves may boost Iran's ranks in terms of global capacity, a national director said.

Ali Vakili, identified by the Iranian Oil Ministry's official news agency Shana as a managing director for the Fuel Conservation Co. of Iran, told delegates at a domestic oil and gas conference during the week that Iran's global position as an energy producer could expand.

"A golden triangle of oil deposits has been recently discovered in the Persian Gulf, which will most probably improve the country's rank in holding oil reserves in the world," Shana reported. "The official said Iran sits atop the world's fourth largest oil reserves, which may become even bigger with new discoveries."

The director offered no specifics on what constituted recent Persian Gulf discoveries for Iran. Earlier this month, Iranian Oil Minister Bijan Zangeneh said from the sidelines of a conference with the Iranian president that oil projects worth up to $20 billion are on the agenda for Iran in the coming weeks. Oil projects in South Pars are on the list of new developments, with up to six phases of production on tap for the future.

Iran in March started oil production from the South Pars complex in the Persian Gulf for the first time. The oil ministry estimates the field, which Iran shares with Qatar, holds more than 14 billion barrels of oil.

The country's oil minister said Iran could go tit-for-tat on production trends with Qatar given recent developments at South Pars.

As a member state, Qatar is coordinating with the Organization of Petroleum Exporting Countries on a production ceiling aimed at balancing an over-supplied crude oil market. Iran is excluded from the arrangement so it can regain a market share lost to nuclear-related sanctions.

Vakili said most of the oil fields in Iran would require enhanced methods to stimulate further production. By his estimate, billions of dollars in investments would be needed for broader developments, which could prevent challenges for Iran given the limitations of Western economic sanctions.