However, he noted that expert assessments indicate the plan’s overall objectives will require approximately USD 190 billion in financing.
Speaking at a parliamentary session reviewing the first year of the Seventh Five-Year Development Plan, Paknejad thanked the Energy Committee and the Budget and Planning Committee of the Islamic Consultative Assembly for their detailed report on the ministry’s performance. He explained that with full coordination between operational and financial monitors appointed by the Supreme Steering Council and the Planning and Budget Organization, an operational roadmap and annual quantitative targets were developed and assigned across 26 major projects.
He added that the Ministry of Oil was responsible for drafting eight executive bylaws under the Seventh Plan—all of which were completed and approved by the Cabinet on time. Fourteen additional bylaws, prepared jointly with other agencies, are currently moving through the approval process.
Significant Rise in Crude and Condensate Exports in Early 2025
Paknejad stated that although only 22 percent of the required financial resources were provided in 2024, the oil and gas extraction sector recorded 6.2 percent value-added growth, exceeding the national economic growth rate of 3 percent. In the first half of 2025, crude oil and condensate exports saw a “significant increase” compared to the same period in 2024.
He highlighted the establishment of the Oil and Gas Investment Account under Clause (b), Article 14 of the Plan, noting that more than 49 trillion rials were deposited by the National Iranian Oil and Gas Companies in 2024. Although these funds were allocated to oil industry projects, a portion—about 51 trillion rials—had been withdrawn earlier for subsidy allocations. This year, 56 trillion rials have so far been deposited, a figure expected to reach 90 trillion rials by year-end.
24 Oil Fields and 34 Gas Fields Presented to Investors
Under Clause (b), Article 15 of the Plan, Paknejad reported that 24 oil fields and 34 gas fields have been introduced to domestic investors to address supply imbalances and meet industrial gas demand.
Following approval of the executive bylaw for Sub-Clause 3 of Article 15, four development contracts were signed with qualified domestic firms, aimed at producing 32 million cubic meters per day of raw gas (about 3% of national capacity) and 78,000 barrels per day of crude oil (around 4% of national capacity).
First-Year Production Targets Fully Achieved
Paknejad said that despite limited funding, the ministry succeeded in meeting all quantitative production targets for the first year of the Plan, including crude and raw gas output, flare gas collection, and securing stable fuel supply. Crude oil and raw gas production rose 8 percent and 3 percent, respectively, compared to the baseline year.
He reported that Iran’s average crude oil production capacity last year reached 4.152 million barrels per day, with actual crude output capacity at 3.954 million bpd, condensate capacity at 750,000 bpd, and raw gas production capacity at 1.097 billion cubic meters per day.
Production from joint oil fields also increased by 80,000 bpd, exceeding the plan’s target of 56,000 bpd for 2024.
Paknejad added that domestic refineries surpassed their gasoline and diesel production targets, reaching 110 million liters per day of gasoline and 115 million liters per day of diesel.