The International Energy Agency said Wednesday that Iran could add as many as 730,000 barrels per day of production in less than a year once oil export sanctions against the country are lifted.
According to Reuters, the agency estimates that Iran could boost production to between 3.4 million and 3.6 million barrels per day “within months” of the sanctions being lifted.
Iran pumped an estimated 2.87 bpd in July, up 50,000 bpd from June.
Western sanctions have limited Iran’s crude exports to 1 million bpd since 2012 from a high of 2.5 million bpd.
“While significantly higher production is unlikely before next year, oil held in floating storage – at the highest level since sanctions were tightened in mid-2012 – could start to reach international markets before then,” the IEA said.
Last month, Iran reached a deal with the United States and five other western powers that would roll back oil export sanctions against the country in return for curbed nuclear development.
Under the deal, Iran will be forced to remove two-thirds of its installed centrifuges and store them under international supervision, dispose of 98 percent of its enriched uranium and permanently grant the International Atomic Energy Agency any kind of access it needs to monitor nuclear development.
However, the sanctions will only be lifted after Iran has complied with the terms of the agreement, and after the agreement has been ratified by the U.S. Congress.
Analysts expect that the sanctions won’t be lifted until at least December and added that they could still be in place at the end of the first quarter of 2016, Reuters noted.
Last month, Iranian Minister of Industry, Mines and Trade Mohammad Reza Nematzadeh said the country hopes to attract nearly $200 billion worth of new energy projects by 2020.
Iran has redesigned its contract model in anticipation of a new foreign investment wave.
The new contracts, a model Iran is calling its integrated petroleum contract (IPC), would have a life of 20 to 25 years.