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Oil Minister: European states will suffer most from economic sanction on Iran

Tehran, Dec 20, IRNA-Iranian Oil Minister Kazem Vaziri Hamaneh said on Wednesday that the European states will suffer the most if possible economic sanction being orchestrated by Washington on Iran creates obstacle in the way of Iranian crude oil output.

He made it clear that economic sanctions will have no impact on supplying oil to domestic market.

He told IRNA that Iran had been under economic sanctions during the past 27 years and any anti-Iran decision of the Group 5+1 (permanent members of the Security council plus Germany) could not create obstacle for development of Iranian oil industry.

Asked whether the economic sanctions would effect Iranian crude oil output, Hamaneh-Vaziri said that fortunately, Iranian oil industry has made satisfactory progress in the past several years and Iran has no problem in meeting domestic needs.

"If the economic sanctions take effect, the European states will suffer the most, because any obstacle in the way of Iranian crude oil output will have dramatic impacts on European market," Iranian oil minister said.

Touching on the performance of the Oil Ministry in the past single year during his term in office, Vaziri Hamaneh said that the ministry has managed to boost crude oil output capacity with new explorations for oil.

Oil minister declares reluctance to export gas to UAE

Kazem Vaziri Hamaneh said that if the sale price of gas indicated in the agreement signed with the UAE titled `Crescent' is not revised, Iran will be unwilling to export gas to this country.

He made the remark while addressing domestic and foreign reporters, adding that the managing director of the UAE company is willing to hold face-to-face talks on the issue.

Concerning his talks with the Iraqi oil minister on cooperation about joint oil fields, he said that such collaboration will prevent migration of hydrocarbure and non-optimum exploitation of oil reserves.

The minister said that both sides are interested in such cooperation, and that he and his Iraqi counterpart agreed to appoint a common trustworthy advisor who will submit proposals on survey of oil reserves.

Hamaneh also declared that Iran and Oman will cooperate in a joint oil project.

About participation of foreign enterprises in the projects of Iran's oil industry, he said, "A number of foreign companies have purchased some of the documents of the relevant tenders. However, they are waiting to see the outcome of the political talks currently underway about Iran."

Turning to discord among Iran, India and Pakistan on the joint gas pipeline project, he said that the assigned consulting company has assessed Iran's gas price and declared it to India and Pakistan.

"Iran finds the announced price too low, while India and Pakistan consider it to be too high," he added.

Hamaneh said that exchange of views between Iran and India about the sale price of LNG still continues.

Oil Industry to pay for its requirements in euro

Hamaneh said that based on the government's policy to replace dollar with euro in foreign transactions, the requirements of oil industry will be purchased by paying euro.

Speaking to reporters, Hamaneh said that this applied to Iran's crude oil, adding that the base price of crude oil in the world is always given in dollars, not in any other hard currency.

"This has been accepted worldwide, unless a new solution will be found. However, over the past 10 months, it has been underlined in all of Iran's crude oil transactions that payment should be made in euro.

"But the type of payment for the export of crude oil is decided based on Central Bank of Iran's (CBI) requirements," added the minister.

In response to the question whether attraction of investment in oil industry has reduced, the minister said that not only any reduction has not taken place in this regard, but that a considerable growth is evident.

He put the expenses of projects currently underway in the oil industry at 28.65 billion dollars.

"Given that contribution of foreign banks in providing banking facilities for the Oil Ministry's contracts have reduced, we are seeking alternatives on the domestic scene to compensate such a shortage," he added.

He referred to the growing trend of the Oil Ministry's defined activities and signing of contracts, adding that the goals set in the Fourth Five-Year Development Plan for investment of 118 million dollars in the oil industry will undoubtedly be materialized if the amount is invested in three distinct sections.

Hamaneh said that in general materializing such a goal depends on finalization of the agreements which are currently being discussed and their finance.

... Payvand News - 12/20/06 ... --

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