Iran’s Oil Minister Mohsen Paknejad has officially announced the discovery of a significant gas-oil field in the southern part of the country. According to a statement made on October 6 and reported by the IRNA news agency, exploratory operations have led to a substantial increase in Iran’s total in-place gas reserves by approximately 10 trillion cubic feet. The new field, known as the Pazan Field, is situated in southern Fars Province and stretches toward northern Bushehr.
The discovery comes after an eight-year pause in exploration activities at the site. Recently, the completion of drilling for the second exploratory well marked a critical milestone for Iran’s energy sector. Paknejad emphasized that the development contract for the Pazan Field has already been awarded, with production expected to begin within the next 40 months. This timeline underscores Iran’s commitment to accelerating domestic energy production despite facing external challenges.
Minister Paknejad highlighted that further exploration within the Pazan Field has uncovered a horizontal oil layer containing at least 200 million barrels of crude oil. He suggested that ongoing exploration activities could potentially reveal even larger reserves in the future. Based on current assessments, with a recovery factor estimated at 70 percent, Iran could extract around 7 trillion cubic feet of gas from the newly discovered reserves. This volume is roughly equivalent to 17 to 18 years of output from a single phase of the South Pars field, which is one of Iran’s largest gas projects and is shared with neighboring Qatar.
The South Pars Gas Field itself is developed across 24 phases on Iran’s side and remains a cornerstone of the country’s natural gas industry. The discovery in the Pazan Field further strengthens Iran’s position as a key player in regional energy markets. These developments are especially significant given ongoing international sanctions that have restricted Iran’s ability to import advanced equipment and modernize its aging energy infrastructure.
Paknejad reported a notable increase in daily oil production, exceeding 120,000 barrels, and stated that crude exports have reached record highs in recent months. This growth has occurred despite persistent sanctions targeting Iran’s oil sector. The minister attributed these achievements to improvements in domestic production processes, effective fuel demand management, and measures taken to reduce fuel smuggling.
One of the most impactful outcomes has been a reduction in diesel consumption by about 5 million liters per day over the past year, which has eliminated the need for diesel imports. While these measures have helped stabilize domestic supply, sanctions continue to limit Iran’s access to modern equipment necessary for efficient resource extraction. According to data published by the Iranian Union of Exporters of Oil, Gas and Petrochemical Products in mid-2025, much of Iran’s energy infrastructure remains outdated and faces operational difficulties under current economic conditions.
Iran’s energy sector faces increasing challenges as economic pressures intensify under renewed international sanctions and a sustained “maximum pressure” campaign. Recent statistics from the National Iranian Gas Company show that household gas consumption rises dramatically during winter months—from 250 million cubic meters per day in summer to as high as 650 million cubic meters daily during peak winter demand. This seasonal surge creates a daily shortfall exceeding 200 million cubic meters during colder periods.
Data from the Iranian Gas Engineering and Development Company indicate that Iran’s total energy supply is equivalent to approximately 2.2 billion barrels of crude oil. Natural gas accounts for about 72 percent of this supply, while oil and its derivatives make up roughly 26.5 percent. Coal and other sources represent less than 1.5 percent of total energy provision. Despite these resources, ongoing sanctions continue to challenge Iran’s ability to maintain and upgrade its energy infrastructure, putting pressure on both domestic consumption and export capabilities.
