“[Production rates] at the very big oil fields that were discovered in Iran over 50 years ago are now declining at a rate of 10 to 15 per cent a year,” Mehdi Varzi, president of Varzi Energy told MEED on the sidelines of the Chatham House Middle East Energy Conference in London.

“New drilling and gas injection has done enough to reduce depletion to around 200,000 barrels a year [b/y]. You have to replace that stock just to stand still.”

Varzi told MEED that the National Iranian Oil Company is now discussing ways to improve production rates.

He believes that extra supplies could come from associated gas captured in the South Pars fields, currently under development.