Dec 19 (Reuters) - Iran in a rare admission on Monday said its crude production has dropped due to lack of investment in its oil fields, as it faces the West's toughest ever sanctions over its nuclear programme. "Compared to last year there was an insignificant drop in our crude production due to lack of investment in developing oil fields," Deputy Oil Minister Ahmad Qalebani was quoted as saying by the student ISNA news agency. Qalebani did not provide a figure for the fall in output. Iran has not previously attributed falling output to a lack of investment. Most foreign oil companies are avoiding Iran's energy sector because of sanctions. Iran, the world's fifth-largest crude exporter, currently produces 3.5 million bpd, but hopes to boost its output to 5.1 million bpd by 2015. Concerns over the OPEC producer's nuclear programme have increased since a group of hardline students stormed the British embassy in Tehran. Britain closed its embassy and expelled all Iranian diplomats from London. Several other countries recalled their envoys, including France, Germany, Italy, Spain and the Netherlands. The European Union is considering a ban - already in place in the United States - on imports of Iranian oil, although diplomats and traders say awareness is growing in the EU that a ban could potentially damage the bloc's economy without doing much to undercut Iran's oil revenues. Iran has warned any move to block its oil exports would more than double crude prices. (Writing by Ramin Mostafavi; Editing by Alison Birrane)

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