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Iran says $1.16bn spent on new finds

Iran's oil and gas discoveries in the last five years have cost the government $1.16 billion, director of exploration at the National Iranian Oil Company, Mahmoud Mohaddes, said today.

"The discoveries in the oil and gas sectors over the five-year period were made at a cost of $1.16 billion," Mohaddes was quoted as saying in the daily Abrar-e Eqtesadi, according to a Reuters report.

"In the course of the five-year development plan 19 new oilfields or reservoir layers and eight new gas fields or reservoir layers were discovered," Mohaddes said, adding exploration success rates were 79% during the five-year period.

Iran is one of the world's biggest oil and gas exporters but its economy, heavily dependent on energy revenues, is suffering amid the global financial crisis and international ostracism over its nuclear energy programme.

The Islamic republic has struggled to find the cash and technology to develop its energy sector as sanctions and political pressure have kept foreign companies away.

Iran could face new sanctions this year from the UN Security Council.

It says it is pursuing nuclear energy for electricity needs while Washington and its allies fear it is an agenda to acquire nuclear weapons capability.

"Iran is producing 1.5 billion barrels of oil and condensates annually, that is why making new explorations is a necessity," Mohaddes said.

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