Iran Cuts Oil Output by 200,000bpd

TEHRAN (FNA)- Iran has cut oil production by 200,000 barrels per day (bpd) from 4.04 million bpd, in line with OPEC’s Oct. 24 decision to find ways to support declining crude prices, a director of the National Iranian Oil Company (NIOC) said on Friday.

“We are obeying the OPEC quota. We have cut by 200,000 bpd,” Mohammad Ali Emadi told Reuters in an interview.

Asked what will happen to the excess crude from the cuts, he said, “Some will be sent to storage and sometimes we use this opportunity for overhaul and maintenance.”

Emadi said Iran is targeting for 5 million bpd of total oil production by end-2010, while the country’s refining capacity is projected to double to 3.2 million bpd, from the current 1.6 million bpd.

The additional refining capacity will include new builds and upgrades, he added.