Iran discovers new 53 billion barrels oil field

Iranian President Hassan Rouhani has announced that a new oil field in the Southwest of the country has been discovered, which could increase Iran’s proven crude reserves by around a third.

“We have found an oil field with 53 billion barrels of oil in place, 53 billion barrels,” said Rouhani in a speech in the central city of Yazd. “This is in a big oil field that stretches 2,400 km² from Bostan to Omidiyeh. The oil layer has a depth of 80 metres.”

The new field, located in oil-rich Khuzestan province, could become Iran’s second largest after one containing 65 billion barrels in Ahvaz, according to the AP news agency.

Iran is the fourth largest reserve holder of crude oil and the second largest holder of gas reserves, according to the US Energy Information Administration (IEA). However, Iran has recently struggled to sell oil abroad due to sanctions imposed by the US.

Severe sanctions on Iranian oil were reinstated by US President Donald Trump last year after abandoning the landmark 2015 nuclear deal between Iran and six world powers. Under the accord, Iran agreed to limit its nuclear activities in return for sanctions relief.