Iran Energy Production Capabilities
This page is focused on the major fields within Iran used in the production of crude oil and natural gas. This is based on open-source information gathered in Mid-April 2024. This analysis is relevant to the question of Iranian Energy Export Capabilities, which are required for the world to consume Iran's significant energy exports.
Natural Gas
Iran is successful in natural gas exploration. They have the second largest holdings of natural gas reserves in the world at 1.2 trillion cubic feet or Tcf, and most are located in the offshore southwestern region, behind Russia with 1.7 Tcf.
They have been producing from South Pars (offshore in the Persian Gulf) which makes up 40% of Iran's natural gas reserves. The natural gas production area for Iran is along the Persian Gulf, stretching from Bandar-e-Abbas at one end, then SW into the Persian Gulf, then North and West along the offshire Persian Gulf fields and onshore what looks like about 100 miles inland along the Persian Gulf ending south of Shiraz.
The oil producing areas of Iran pick up WSW of Shiraz, and both extend into the Persian Gulf and continue onshire for about 100 miles inland. They continue along the border with Iraq for quite a distance.
South Pars straddles the territorial water of Iran and Qatar, where it is called the North Field. South Pars was discovered in 1990, and lies 62 miles offshore in the Persian Gulf. It has a 24-phase development plan, with 23 phases operational. Each phase produces a combination of natural gas with condensate and/or HGLs. Natural gas from the South Pars natural gas field, with production capacity of around 1.0 million b/d, but has limited pipeline, storage and export capabilities to sustain that level.
When you look at Pars South, it is about equidistant from Iran and Qatar., and north of there further into the Persian Gulf, there is pars North, and Kuh-I-Mand 2 with also stretch onshore.
Iran recently discovered Eram, a large, independent onshore natural gas field with 12 trillion cubic feet of recoverable reserves.
Other notable natural gas fields include Kish, North Pars, Sardar-e-Jangal, Forouz-B, Aghar, Golshan, and Kangan, which also hold large amounts of condensate reserves.
Production of natural gas in 2019: 66% from South Pars, plus Tabnak, Nar, Kangan, Khangiran, Homa and Shanoul fields. These are the parts of Iran that are adjacent to the Persian Gulf and south of Shiraz.
About 81% of Iran's natural gas reserves are nonassociated (not sure what that means).
Looks like Kerman is a major inter-connect point for natural gas [pipelines, so we assume there is significant productino there too.
As a final note, we have noticed that Iran has been ramping up consumption of natural gas proportionally with production, although there is a slight excess building more recently. We understand that some of that natural gas goes into domestic consumption (e.g., heat), some goes to powering the commercial economy, and some goes back into the ground to frack or revitalize crude oil fields through enhanced oil recovery (EOR).
They have been producing from South Pars (offshore in the Persian Gulf) which makes up 40% of Iran's natural gas reserves. The natural gas production area for Iran is along the Persian Gulf, stretching from Bandar-e-Abbas at one end, then SW into the Persian Gulf, then North and West along the offshire Persian Gulf fields and onshore what looks like about 100 miles inland along the Persian Gulf ending south of Shiraz.
The oil producing areas of Iran pick up WSW of Shiraz, and both extend into the Persian Gulf and continue onshire for about 100 miles inland. They continue along the border with Iraq for quite a distance.
South Pars straddles the territorial water of Iran and Qatar, where it is called the North Field. South Pars was discovered in 1990, and lies 62 miles offshore in the Persian Gulf. It has a 24-phase development plan, with 23 phases operational. Each phase produces a combination of natural gas with condensate and/or HGLs. Natural gas from the South Pars natural gas field, with production capacity of around 1.0 million b/d, but has limited pipeline, storage and export capabilities to sustain that level.
When you look at Pars South, it is about equidistant from Iran and Qatar., and north of there further into the Persian Gulf, there is pars North, and Kuh-I-Mand 2 with also stretch onshore.
Iran recently discovered Eram, a large, independent onshore natural gas field with 12 trillion cubic feet of recoverable reserves.
Other notable natural gas fields include Kish, North Pars, Sardar-e-Jangal, Forouz-B, Aghar, Golshan, and Kangan, which also hold large amounts of condensate reserves.
Production of natural gas in 2019: 66% from South Pars, plus Tabnak, Nar, Kangan, Khangiran, Homa and Shanoul fields. These are the parts of Iran that are adjacent to the Persian Gulf and south of Shiraz.
About 81% of Iran's natural gas reserves are nonassociated (not sure what that means).
Looks like Kerman is a major inter-connect point for natural gas [pipelines, so we assume there is significant productino there too.
As a final note, we have noticed that Iran has been ramping up consumption of natural gas proportionally with production, although there is a slight excess building more recently. We understand that some of that natural gas goes into domestic consumption (e.g., heat), some goes to powering the commercial economy, and some goes back into the ground to frack or revitalize crude oil fields through enhanced oil recovery (EOR).
Crude Oil Production Capacity
Iran is a founding member of OPEC in 1960. In the 1970s, production was between 5.0 and 6.0 million barrels per day (b/d). Iran is ranked as the third-largest holder of oil reserves, with 209 billion barrels of provided reserves in 2021 according to the Oil and Gas Journal, behind Saudi Arabia (262 billion barrels) and Venezuela (304 billion barrels).
In 2017, production of petroleum and other liquids (crude oil and condensate and hydrocarbon gas liquids (HGLs) rose to 4.8 million b/d, of which 3.8 million b/d was crude oil.
In 2019, 88% of Iranian total crude oil production capacity was in the southwestern onshore fields, where Iran Heavy and Iran Light grades are produced. Iran heavy is medium-heavy, high-sulfur crude oil and comes from fields such as Gachasaran, Marun, Ahwaz, and Bangestan. Iranian Light is similar in quality to Arab Light, and is produced onshore in Khuzestan, and 2/3 comes from Ahwaz, Karanj, and Aghajari. Those fields have a high rate of decline, and may need EOR (or fracking) techniques.
In June 2021, according to Al Jazeera on July 22, 2021, Iran produced 2.47 bpd, or 2.47 million barrels per day, Production is limited by global sanctions.
If you look on a map, the major Iranian oil fields are either in the Northern Persian Gulf, or along the border with Iraq, well west of Isfahan and west of Shiraz. They start a little south of Shiraz.
There are other grades produced in other fields (Azadegan, Doroud, Foroozan, Lavan Blend, Soroush/Nowruz, and Sirri). Sounds like a cannabis dispensary menu. The largest is from the Azadegan oil field (Iraq: Majnoon) which could reach 0.7 million b/d.
In 2017, production of petroleum and other liquids (crude oil and condensate and hydrocarbon gas liquids (HGLs) rose to 4.8 million b/d, of which 3.8 million b/d was crude oil.
In 2019, 88% of Iranian total crude oil production capacity was in the southwestern onshore fields, where Iran Heavy and Iran Light grades are produced. Iran heavy is medium-heavy, high-sulfur crude oil and comes from fields such as Gachasaran, Marun, Ahwaz, and Bangestan. Iranian Light is similar in quality to Arab Light, and is produced onshore in Khuzestan, and 2/3 comes from Ahwaz, Karanj, and Aghajari. Those fields have a high rate of decline, and may need EOR (or fracking) techniques.
In June 2021, according to Al Jazeera on July 22, 2021, Iran produced 2.47 bpd, or 2.47 million barrels per day, Production is limited by global sanctions.
If you look on a map, the major Iranian oil fields are either in the Northern Persian Gulf, or along the border with Iraq, well west of Isfahan and west of Shiraz. They start a little south of Shiraz.
There are other grades produced in other fields (Azadegan, Doroud, Foroozan, Lavan Blend, Soroush/Nowruz, and Sirri). Sounds like a cannabis dispensary menu. The largest is from the Azadegan oil field (Iraq: Majnoon) which could reach 0.7 million b/d.
Reserves
Most (about 86%) of Iran's crude oil reserves are located onshore. Of that, 80% of total onshore reserves are in the Khuzestan Basin (SW border of Iraq).
Offshore reserves are in the Persian Gulf and in the Caspian Sea (0.5 billion barrels of proved and probable reserves in the Caspian).
Iran shares both onshore and offshore fields with Iraq, Qatar, Kuwait, the United Arab Emirates (UAE), and Saudi Arabia.
Offshore reserves are in the Persian Gulf and in the Caspian Sea (0.5 billion barrels of proved and probable reserves in the Caspian).
Iran shares both onshore and offshore fields with Iraq, Qatar, Kuwait, the United Arab Emirates (UAE), and Saudi Arabia.
Fields with recent development contract activity
Integrated Petroleum Contracts (IPC) combine buyback projects (payment of capital costs and profit margin) along with production sharing agreements (PSA) that allow for a company to share the gains of a big find. Most international oil companies (IOCs) will not work under global sanctions, so most of these contracts have been given to local, domestic, Iranian companies.
- Phase 11 of the South Pars field (natural gas).
- West Paydar and Abadan onshore fields (near Iraq)
Local companies are focused on developing the West Karun oil fields (in the SW region), including Azadegan, South Azadegan, Yadavaran and North and South Yaran fields. Some of these fields straddle fields in Iraq.
The West Karun fields have significant expansion capability (from 0.4 million to 1.2 million b/d).
- Phase 11 of the South Pars field (natural gas).
- West Paydar and Abadan onshore fields (near Iraq)
Local companies are focused on developing the West Karun oil fields (in the SW region), including Azadegan, South Azadegan, Yadavaran and North and South Yaran fields. Some of these fields straddle fields in Iraq.
The West Karun fields have significant expansion capability (from 0.4 million to 1.2 million b/d).
Primary Source: U.S. Energy Information Administration Country Analysis Brief for Iran. Data presented are the most recently available as of April 30, 2021.
EIA has a country analysis for Iran, here, which we used to verify information from other sources.
EIA has a country analysis for Iran, here, which we used to verify information from other sources.