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U.S. Sanctions Have Idled a Quarter of Iranian Oil Rigs

(Reuters) Bozorgmehr Sharafedin - At least 40 of 160 oil rigs in Iran are out of action as U.S. sanctions strangle the Islamic Republic's oil industry, according to a Reuters review of financial documents and industry sources. The lack of rig activity could damage Iran's capacity to produce oil from older fields, which require continuous pumping to maintain pressure and output. The sharp fall in oil prices so far in 2020 - due to the impact of the coronavirus epidemic on global demand - will also exacerbate the pain for Iran's economy. Some of Iran's oil rigs are out of action because they can't be repaired, as sanctions have made it more difficult for Iran to buy and import spare parts. Iran bought dozens of new and second-hand Chinese rigs in the last decade, but the core parts of those were still American.
2020-03-11 00:00:00
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