Mehdi Hosseini: Return of Iran to world market will not lead to further oil prices decline

Baku. 16 October. REPORT.AZ/ Iran needs at least 150 bln USD in next five years to complete modernization of its oil industry, Report informs citing the TASS.

According to Mehdi Hosseini - Senior Advisor to Petroleum Minister Bijan Namdar Zangeneh, these funds are necessary to increase production of "black gold", as well as for the construction of plants for the liquefaction of natural gas, and oil and gas processing facilities.

Hosseini believes that return of Iran to world market will not lead to a further decline in oil prices."Deliveries from Iran in the first phase could lead to lower prices - he said. However, we expect that both shale hydrocarbons in US will fall by at least 500 thousand barrels per day in 2016 due to high production costs and lack of funds.Iranian oil then can fill the gap."

Adviser to the Minister also said that Iran plans to increase oil production in three stages - first 500 thousand barrels after the lifting of sanctions, and then up to 4.2 mln barrels per day - that is, to a level that was reached before the imposition of sanctions.Third stage will mean a rise in production by another 2 mln barrels to 6 mln barrels of oil per day.