Investment Return in Iranian Oil Industry Projects Favorable

Zamaninia made the remarks in an address to a seminar to Examine Mandates and Challenges Ahead of Partnership Contracts and Financial Mechanisms of Investment in the Oil Industry.

He said consensus on the new oil contracts has been prolonged.

“The new oil contracts should have been prepared in a way that they would have been signed soon after the Joint Comprehensive Plan of Action (JCPOA) and opportunities should have been used in the best possible manner. However, so many seminars and meetings, held in universities, without dealing with core of the issue, so consensus has taken so long time.”

He noted that the oil industry is expected to be the forerunner of the country’s economic development but unfortunately it has been perplexed by politicization. 

“We are honored of gaining the first rank in world’s oil and gas within more than 100 years of he history of oil industry. We so concluded that having so much reserves, world cannot take Iranian energy for granted. However, sanctions proved the world can deny our energy sources.”

He noted that world realities should be taken into consideration and energy sources should be well managed.

“Despite more than a century-old chronology, Iranian oil industry is not in a favorable condition in terms of the ratio of production to reserves. Such countries as Saudi Arabia and Russia produce times more than Iran and they have refining capacity. Even Iraq produces more than Iran and our oil industry will not have a better status despite the ratio of production to reserves.”

“Unfortunately, we are not skilled enough to show and introduce our capacity.”

Also referring to enormous meetings of foreign officials with Iranian parties in the post-JCPOA era, Zamaninia said much time has been spent on finalization of the new model of oil contracts, and fortunately the model is finalized and international companies are willing to invest in Iranian oil industry.

Zamaninia said foreign companies are willing to cooperate with Iran just because the country’s image internationally is changing and return on investment in Iranian oil projects is favorable.

Now, pre-evaluation of the international companies willing to run Iranian oil contract tenders has begun and serious talks with Russian, Chinese and European companies are under way.

Elsewhere in his remarks, Zamaninia referred to political and physical security, geopolitical condition of Iran in the world energy hub, Iran’s top rank in natural gas reserves, and fourth rank in crude oil reserves, skilled and elite manpower and about 200 non-developed reservoirs as advantages of Iranian oil industry.

“Let’s make endeavors to turn Iran into hub of exchanges and management of the market of varying kinds of energy carriers.”

He said the neighbors need Iran’s sources. “There are abundant opportunities in the Caspian Sea and in swap and transit of crude oil north of the country. Talks on the issue are on agenda.”

He went on to say that there are many opportunities in Iranian oil and gas industries and for the time being, gas supply to Baghdad and Basra is getting finalized.

The official noted that the project for gas exports to Oman is underway and the UAE and Kuwait seek Iranian gas.

“We should use the opportunities available for détente and better international relations to bring about growth and development of the oil industry,” he concluded.