According to Reuters, despite being exempt from US sanctions, the lower level oil and gas projects in Iran have either come to a halt or slowed down drastically due to water shortage.

At least 12 petrochemical, refining, and chemical fertilizer projects in Iran with a total production capacity of 5 million tons have fallen behind schedule or left unfinished due to water shortage.

Reuters points to the Firuz Abad Petrochemical project in Fars province which has only progressed 10 percent after 10 years due to the shortage of water in that region.

According to a project manager, mistakes were made about the project’s required amount of water during the initial studies for the project.

Oil refineries and other petrochemical manufacturing plants require massive amounts of water for cooling.

Meanwhile, the drought and the depletion of underground water sources have led to protests by the locals in these areas.

Since the US decision to leave Iran nuclear deal known as the Joint Comprehensive Plan of Action (JCPOA) and re-imposing sanctions on the Islamic Republic, the country has tried to increase its production of lower-level products which are easier to sell than oil. But the shortage of water is one of the dozens of problems that Iran faces during these times which intensifies its economic problems.

Iran’s oil exports have reduced by 80 percent since May of this year and according to Reuters, Iran’s monthly oil revenue is at $700 million.

The country currently produces 65 million tons of petrochemicals each year, out of which 22.5 million tons are exported. Iran plans on increasing its petrochemical production to 91 million tons in the next two years and 130 million tons in the next three.