Iran plans to raise its oil production capacity by 3 million barrels a day (b/d), doubling its production to almost 7 million b/d, according to the deputy head at the state-run National Iranian Oil Company.

Production at the end of March, according to Opec’s secondary sources data stood at 3.7 million b/d.

Iran puts this figure closer to 3.89 million b/d and has signalled its intention to raise output to pre-sanctions levels of four million b/d this year as it looks to regain market share.

The Islamic republic was looking at signing contracts worth $80bn over the next two years with local and domestic contractors, added Gholam-Reza Manouchehri at the Iran International Oil, Gas, Refining and Petrochemical Exhibition in Tehran.

While he did not specify the timeline for capacity expansion, Iran faces multiple challenges of accessing finance as well as possible re-imposition of sanctions, which could delay its plans for increased output.

While the state oil company pre-qualified 29 companies in January to participate in forthcoming tenders, it has yet to release the Iran Petroleum Contract, which would specify the terms for exploration and production in the country.

It is expected that shared fields such as the South Azadegan will be tendered first.

Iran will also be expected to comply with the production cut agreement signed by Opec and non-Opec producers to cut output by 1.8 million b/d – if an extension is agreed upon by all parties.

Tehran had negotiated for a flexible agreement with producers that it would lower production once its output reached 4 million b/d.