Zanganeh: Non-OPEC Producers Should Be in Assonance with OPEC

Speaking to reporters on the sidelines of a meeting on mandates and challenges ahead of partnership contracts and financial mechanisms of investment in oil industry, Zanganeh commented on his expectation of talks and meetings between Russian and Saudi energy ministers and said, “We hope the two sides will reach agreements and that the non-OPEC states and Russia will accompany members of the organization.”

He referred to framework of Algeria accord and said, “We hope Russia and non-OPEC members will reach an agreement on the decision of the OPEC members to cut oil production.”

Asked whether Russia will take part in the regular November 30 session of the OPEC in Vienna, Zanganeh said, “The regular session of OPEC in November will be attended by the oil and energy ministers of the organization in the permanent secretariat of the Organization. Russia will not take part in the meeting.”

The Minister then commented on development of Iranian oil fields and said the goal is to enhance the coefficient of recovery of reserves.

He added, “Production capacity can be increased by drilling many wells. However, our goal is to increase the coefficient of recovery from reserves.”

Asked whether the text of the new model of oil contracts has been finalized, he said, “The text has not been finalized yet and following final stages. Now, we are busy verifying confirmation of qualification of the foreign companies.”

Reacting to media propaganda that Iranian Ministry of Petroleum only distinguishes foreign companies as qualified, he said, “Iranian companies qualifications have already been surveyed and 11 companies have been confirmed qualified. Now it is the foreign companies’ turn. Once the qualifications are assessed, the text of the new model of oil contracts will also be finalized.”

As for presence of Indians in Farzad B field, Zanganeh said, “Their (Indians’) proposed financial model is not acceptable and if the proposal is not changed, Indians will not develop the field.”