Iran will run into difficulties in increasing oil production – Moody’s

Almaty. February 23. Silkroadnews - Getting Iran returned to the oil market leads to more oil glut, yet the country will run into difficulties when increasing its oil production, the international rating agency Moody’s Investors Service said on Monday.
“Iran has not joined the agreement on oil extraction freeze to stabilize the prices, reached between Saudi Arabia and Russia on February 16. Moody’s expects an additional 500 thousand barrels per day of the Iranian oil at the global market in 2016,” - Trend quotes the rating agency message.
To increase oil production, as noted, Iran shall attract the investments to modernize its oil fields and manage the political risks successfully.
An obstacle for Iran, as the report says, is an old oil infrastructure which modernization, according to the experts’ expectations, will require $150-200 billion.
“In addition, the US oil companies are prohibited from investing in Iran because the US still remains the country imposed sanctions related to terrorism and development of ballistic missiles,” - the report says.
On January 16, 2016, the most of the sanctions has been removed from Tehran: the IAEA presented a report which confirmed the willingness of the Iranian authorities to implement the program built in the course of the long negotiations on significant reduction of the country’s nuclear potential. Later, the European Union and the United States confirmed the removal from Iran of the economic and financial sanctions related to its nuclear program.
Iran announced its plans to increase oil production by 500 thousand barrels per day immediately after the sanctions removal. Over the next six months, Iran is going to increase production by another half a million barrels per day.
According to the latest OPEC report, in January Iran boosted production up to 3.37 million barrels per day from 3.35 million barrels per day in the previous month.