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Iran's Minister of Petroleum Elaborates
OPEC output:
Iran announced that it does not expect an increase in OPEC's crude oil output for the time being. "Given the (ongoing) circumstances, OPEC will not hike its output," Iranian Minister of Petroleum, Masoud Mir-Kazemi told reporters in his first press conference after taking the post in the new cabinet.
Mir-Kazemi said Russia's decision to increase its crude production and weak dollar - which is the currency for a major part of global oil trades - are among the main factors encouraging Iran, as OPEC's market supervisor, to believe that the cartel would not decide to boost its output.
"Another issue which is important for OPEC is the economic meltdown and the fact that oil consumption is not ascending during the recession period," he added. OPEC oil supply rose in November 2009 to its highest in 2009, boosted by increased output from Nigeria, the United Arab Emirates and Saudi Arabia. Supply from the 11 members of the Organization of the Petroleum Exporting Countries bound by output targets, all except Iraq, rose to 26.52 million bpd from a revised 26.43 million bpd in October 2009, according to the survey of oil firms, OPEC officials and analysts.
Sanctions:
Meanwhile Mir-Kazemi warned the world powers that harsher sanctions against Iran would stop the country's crude oil exports. "Iran is one of the world's major oil producers and any cut in Iran's supply of crude will, undoubtedly, cause prices to surge," he stated.
Investments:
Iran is aiming for annual investment of at least US$35 billion in its upstream oil and gas sectors over the next five years from foreign and domestic sources. "For the Fifth Five-Year Development Plan (2010-2015), the target is at least US$35 billion per year, both in foreign and local investment, for the upstream section of the oil and gas industry," he said.
In the past four years, the sector has attracted about US$10 billion worth of foreign investment, he said, describing this figure as "very high", in part due to the high oil price. As the world's fifth-largest crude exporter, Iran needs to attract foreign capital and know-how to help develop its vast energy resources. Western firms are increasingly wary of investing in Iran due to the standoff over Tehran's nuclear program. But Iran is still drawing interest from Indian, Chinese and other Asian firms, seen as less susceptible to international pressures.
Gasoline:
“Iran’s gasoline consumption rate currently stands at 66.5 million liters/d… out of which 44.5 million liters/d is produced domestically and 22 million liters/d is imported… our gasoline importations rate will gradually reduce via decreasing the amount of gasoline rations,” the Minister noted.
Commenting on Majlis claims on illegal gasoline importations as of 21 March 2009, Mir-Kazemi stated “Considering Majlis’s new law regarding – based on which imported gasoline had to be sold at free market (de-subsidized) prices – the amount of gasoline rations for private vehicles would have decreased to 25 liters/ month, which was not possible to implement at once… the mentioned law was approved on 19 March 2009 and the government was obliged to implement it as of 21 March.”
Gas Exports to Turkey:
IIn regards the recent negotiations between Iran and Turkey concerning gas transfer, the Iranian Minister of Petroleum said “Our strategy is based on selling gas to the final gas user… we signed a gas deal with Turkey in November 2008 based on which, Iran and Turkey have the right to transfer each other’s natural gas and the duration of this deal has been extended for four months at the moment… the Turks can invest in Iran’s oil and gas projects via buyback method.”
Petrochemical Industry Management :
Commenting on ceding Iran’s petrochemical industry to the Ministry of Industries and Mines, Mir-Kazemi said “Petrochemical units will be privatized like all other industrial units, but management of this section will remain in the Ministry of Petroleum.”
NIOC AoA :
When asked about article of association (AoA) of the National Iranian Oil Company (NIOC), Mir-Kazemi stressed “A legal group is holding assessments on this AoA and it will be handed over to the government once the assessments are finalized… the delay in delivery of this AoA is in no way linked to political reasons and it’s only due to managerial disputes.”
Talks Held on Salman Gas:
Iranian Minister of Petroleum stated that the final decision regarding gas production of the Salman field will be made once this joint field’s development project is completed. “This field’s gases were flared for many years but we plan to inject this field’s gas to refineries of the South Pars (SP) gas field via inauguration of the Sirri-Assaluyeh pipeline… Salman’s gases will be flared before inauguration of this pipeline… negotiations have also been held with a number of Persian Gulf states for exports of Salman’s sour gas.”
Gas OPEC :
Regarding appointment of Director General of the Gas Exporting Countries Forum (GECF; Gas OPEC) Mir-Kazemi said “A total of six countries have introduced their candidates for this position… if the forum members do not agree to choose a Director General in the next session the next GECF Director General will be chosen based on Alphabetical order.” – Sobh-e Eghtesad, Iran, Fars, Mehr
