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Iran Closes Oil Wells in Flood-hit Khuzestan amid Drop in Output

FILE PHOTO: An aerial view of flooding in Khuzestan province, Iran, April 5, 2019. Mehdi Pedramkhoo/Tasnim News Agency/via REUTERS
FILE PHOTO: An aerial view of flooding in Khuzestan province, Iran, April 5, 2019. Mehdi Pedramkhoo/Tasnim News Agency/via REUTERS
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Iran Closes Oil Wells in Flood-hit Khuzestan amid Drop in Output

FILE PHOTO: An aerial view of flooding in Khuzestan province, Iran, April 5, 2019. Mehdi Pedramkhoo/Tasnim News Agency/via REUTERS
FILE PHOTO: An aerial view of flooding in Khuzestan province, Iran, April 5, 2019. Mehdi Pedramkhoo/Tasnim News Agency/via REUTERS

Iran has shut around a dozen oil wells in the southwestern Khuzestan province because of massive floods, the semi-official Mehr news agency reported on Wednesday, leading to a drop of up to 20,000 barrels per day in crude production.

Iran's worst flooding in 70 years, which started on March 19, has killed at least 76 people, forced more than 220,000 into emergency shelters and caused an estimated $2.5 billion in damage to roads, bridges, homes and farmland, Reuters reported.

"There are no oil leaks at the Hoor al-Azim wetland area. We have closed 10 to 12 oil wells there as a precautionary measure to prevent any environmental damages," Reuters quoted Touraj Dehghani, the head of Iran's Petroleum Engineering and Development Company (PEDEC), as telling the media.

"The oil production of the field has dropped between 15,000 to 20,000 barrels per day."

Iranian media on Friday reported oil output had been reduced in Khuzestan, home to the Azadegan and Yadavaran oilfields.

Iranian authorities have said the floods have not affected crude exports.

The United States reimposed sanctions on Iran in November after pulling out of a 2015 nuclear accord between Tehran and six world powers. The sanctions have already halved Iranian oil exports.

US President Donald Trump eventually aims to halt Iranian oil exports, choking off Tehran's main source of revenue.

Washington is pressuring Iran to curtail its nuclear program and stop backing militant groups across the Middle East.

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IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
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IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage

The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the economy remains vulnerable.
In a statement, the global lender said it would release about $333 million, bringing total funding to around $1.3 billion, to the crisis-hit South Asian nation. It said signs of an economic recovery were emerging, Reuters reported.
In a note of caution, it said "the critical next steps are to complete the commercial debt restructuring, finalize bilateral agreements with official creditors along the lines of the accord with the Official Creditor Committee and implement the terms of the other agreements. This will help restore Sri Lanka's debt sustainability."
Cash-strapped Sri Lanka plunged into its worst financial crisis in more than seven decades in 2022 with a severe dollar shortage sending inflation soaring to 70%, its currency to record lows and its economy contracting by 7.3% during the worst of the fallout and by 2.3% last year.
"Maintaining macroeconomic stability and restoring debt sustainability are key to securing Sri Lanka's prosperity and require persevering with responsible fiscal policy," the IMF said.
The IMF bailout secured in March last year helped stabilize economic conditions. The rupee has risen 11.3% in recent months and inflation disappeared, with prices falling 0.8% last month.
The island nation's economy is expected to grow 4.4% this year, the first increase in three years, according to the World Bank.
However, Sri Lanka still needs to complete a $12.5 billion debt restructuring with bondholders, which President Anura Kumara Dissanayake aims to finalize in December.
Sri Lanka will enter into individual agreements with bilateral creditors including Japan, China and India needed to complete a $10 billion debt restructuring, Dissanayake said.
He won the presidency in September, and his leftist coalition won a record 159 seats in the 225-member parliament in a general election last week.