Iranian Oil Minister Mohsen Paknejad told Shana that despite severe restrictions over the past year, Iran has achieved “record levels” of crude oil production and exports. He assured the public that Iran’s oil sector continues to operate effectively despite sanctions, crediting strategic measures that have neutralized the impact of the U.S. SHIP Act and other restrictions.
He added that even if snapback sanctions are triggered, “there will be no harsher limits than those already faced,” noting that contingency plans are in place to maintain steady exports.
Advancing Energy Technology and Field Development
Paknejad announced the formation of a high-level task force of academics, industry experts, and technologists to modernize Iran’s oil and gas production systems in response to recent directives by the Supreme Leader. The group aims to apply advanced recovery technologies to raise recovery factors across the country’s oil and gas fields.
He also confirmed that development of the Pazen oil and gas field in southern Iran will play a major role in stabilizing national energy supplies, adding 10 trillion cubic feet of new reserves and expected to produce over 20 million cubic meters per day upon completion.
Reducing Flaring and Expanding Fuel Reserves
The minister highlighted strong presidential backing for flare gas recovery projects, encouraging private sector participation—even at zero base price—to capture and convert associated gas into high-value products. Long-term plans include new NGL projects, several of which are under construction, with most flaring expected to be eliminated by the end of the Seventh Development Plan.
He also reported a 127% increase in liquid fuel reserves for power plants, ensuring stable electricity generation during winter and eliminating the need for heavy diesel imports.
Managing Consumption and Smart Energy Systems
Paknejad addressed rising gasoline consumption, urging public cooperation in demand management and efficiency efforts. He confirmed that the Oil Ministry is implementing Article 44 of the Seventh Development Plan, launching integrated smart energy management systems to monitor and optimize hydrocarbon use across industries.
He noted that through anti-smuggling measures and higher refinery throughput, diesel imports have been halted, with domestic production now meeting demand.
Toward a Value-Added Energy Economy
The minister concluded that Iran’s energy strategy focuses on reducing crude sales and shifting toward value-added downstream production. “Turning crude oil into higher-value products has long been our national goal,” he said, reaffirming the ministry’s determination to modernize refining processes and expand sustainable energy solutions.