Egypt looks to Iran’s ramp-up of oil production which could boost the Arab nation’s proceeds from transit of crude through the SUMED pipeline, its petroleum minister has said. 

Iran sees its oil exports rising by 500,000 barrels per day (bpd) by late November or early December when a net of sanctions built around the country begins to unravel.

Iran, which currently exports about 1 million bpd to Asia as well as Turkey, plans to return to the pre-sanction sales levels when the restrictions are lifted.

Minister of Petroleum Bijan Zangeneh has said Iran’s production would rise by 1 million bpd by the end of the current Persian year on March 20, 2016 or early in the year at maximum.

"They used to work with us through SUMED. They used to store their crude there at Ain Sukhna terminal and Sidi Kerir," Reuters quoted Egyptian Petroleum Minister Tarek El Molla as saying in reference to Iran.

"It will boost back again the activity of SUMED," he said.

The 200-mile (320-km) SUMED pipeline runs from the Red Sea to the port west of Alexandria. Western sanctions on Iran have dried oil shipments through Ain Sukhna and Sidi Kerir since 2012.

Iran will formally notify OPEC members of the increase in production at their next meeting in Vienna in December, Zangeneh said last week.

He also said Iran’s imminent return to normal exports would not drive prices down because the market has already adjusted itself to the comeback.

By Press TV