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IEA: Iran crude production not to rise sharply after nuclear deal

The International Energy Agency says it will take up to five years for Iran to increase its oil output significantly, if Tehran and P 5+1 group of countries reach a final nuclear deal.

The International Energy Agency (IEA) says it will take up to five years for Iran to increase its oil output significantly, if Tehran and P 5+1 group of countries reach a final nuclear deal.

"In three to five years we may see stronger [oil production] growth coming from Iran assuming Iran and global powers strike a final deal in June," Birol was quoted as saying by International Business Times.

Fatih Birol, chief economist and the future head of the IEA predicted that Iranian oil production would not see a  big growth as the country’s oil fields have not been maintained “in the best way” due to anti-Iran sanctions.

The OPEC member, which produced more than 4 million barrels a day in 2008, lost market share to other producers owing to sanctions over its nuclear program. The country reportedly pumped some 2.77 million barrels a day last October.

Last month, Iran’s petroleum minister said Tehran is ready to increase its oil exports by one million barrels per day a few months after the sanctions against the country are lifted.

Iran holds the world's fourth-largest proven crude oil reserves and the world's second-largest natural gas reserves.

Iran’s total in-place oil reserves have been estimated at more than 560 billion barrels, with about 140 billion barrels of recoverable oil. Heavy and extra heavy varieties of crude oil account for roughly 70-100 billion barrels of the total reserves.

Its major oil customers are China, India, Japan, South Korea and Turkey but US and European sanctions are preventing international banks from transferring money to the Islamic Republic.

Foreign oil giants have expressed interest in returning to Iran’s projects as sanctions targeting the Islamic Republic’s energy sector are widely hoped to be eased as a result of Tehran’s nuclear talks with six world powers for a final accord.

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