Iran holds 93 billion barrels of proven oil reserves, or roughly 9% of the world's total. The vast majority of Iran's crude oil reserves are located in giant onshore fields in the Khuzestan region near the Iraqi border and Persian Gulf terminus. More than half of Iran's 40 producing fields contain over one billion barrels of oil. The onshore Ahwaz, Marun, Gachsaran, Agha Jari, and Bibi Hakimeh fields alone account for about two-thirds of Iran's oil production. Most of Iran's crude oil is medium gravity and low in sulfur. Iran has not had significant oil exploration activity in nearly 3 decades.

In December 1998, President Khatami called for the modernization of Iran's oil industry and the discovery of new oil fields in the country. In January 1999, Khatami approved a plan to restructure the industry, including decentralization and the separation of policy from executive affairs. According to press reports, the plan calls for "fundamental changes in management." Also in January 1999, the Majlis ordered the oil ministry to file monthly reports on the amounts of crude, refined products and gas exports. The report will track Iran's actual revenues from these sales against projections.

The National Iranian Oil Company (NIOC) recently has focused on frontier exploration efforts in the hopes of adding 1-2 billion barrels of proven reserves by 1999. NIOC's current five-year plan calls for drilling 37 onshore and 24 offshore Persian Gulf exploration wells by 2000. Since 1995, NIOC has made several sizable oil field discoveries. These include the Darkhoven oil field, which is located offshore Abadan and contains 2.5 billion barrels of low sulfur, 39° API crude oil. NIOC hopes to start production from Darkhoven in 1999, with an initial production of 30,000 barrels per day (bbl/d) and a second phase peak of 60,000 bbl/d. Production goals are still uncertain, though, and further appraisal is required, as target reservoir depths are more than 15,000 feet. Near Ganaveh, NIOC also found two onshore oil fields holding combined reserves of 100 million barrels.

Oil		Natural Gas
Oil...	Production...	Natural gas...
Onshore developments...	offshore developments...	New field developments projects...
Terminals...	Refining...	Natural gas exports...