Iran has discovered new shale oil reserves containing 2 billion barrels of light crude oil in its western Lorestan province, an Iranian official has announced.

"According to preliminary studies, this huge reserve is estimated to hold more than 2 billion barrels of oil in place," the Iranian news agency Tasnim on Saturday quoted Bahman Soleimani, an official at the Exploration Directorate of the National Iranian Oil Company, as saying.

Exploration of shale gas reserves is also in progress in the province, and is projected to be completed in October this year, the official added.

Tasnim also reported that the country had previously announced new shale oil discoveries in the provinces of Kerman and Semnan.

The news agency pointed out that investment on shale oil in Iran is economically infeasible currently with the cost of shale oil production in the country standing between 40 and 80 U.S. dollars per barrel, while conventional oil production costs below 10 dollars per barrel.

Proved oil reserves in Iran rank the fourth largest in the world at approximately 160 billion barrels, roughly 10 percent of the world's total.

source: Xinhua