International sanctions against Iran’s oil industry are taking an attritional toll on the country’s upstream sector, Iranian oil sources tell MEES. Over the past few years, Iran’s oil services sector has made impressive strides in expanding the domestic rig fleet, but a critical shortage of parts and expertise is hurting – “projects are on hold and they have rigs waiting for parts,” explains one Iranian oil veteran.

Iran’s energy sector, the mainstay of the country’s economy, is taking hits on multiple fronts. US-led pressure on oil sales is impacting export levels. According to MEES calculations, output is around 800,000 b/d down on 2011’s average 3.6mn b/d. And a senior politician recently acknowledged oil revenues in the fourth quarter of the current Iranian year (corresponding to 21 December 2012-20 March 2013) are expected to plummet by 40%, compared to the same period last year (MEES, 11 January). (CONTINUED - 760 WORDS)