The Chairman of National Iranian Drilling Company Haydar Bahmani said on Wednesday that the operating cost of extracting a barrel of oil in Iran is $3. Mr. Bahmani made his comments during a ceremony commemorating the thirty-second anniversary of NIDC, the company in charge of drilling and extraction of oil in Iran [Mehr News Agency, 22 December].
The $3 extraction cost is the second lowest in the region. Saudi Arabia’s operating cost of oil extraction is the lowest in the region at an estimated $1-$2 per barrel.
Mr. Bahmani did not disclose the capital expenditure costs to extract a barrel of oil, but that cost is estimated at around $4 a barrel. With the Iranian crude selling at more than $100 per barrel, the margin of producing oil in the country is above 93 percent, a rate rarely achieved in any industry in today’s world.