Iran: Mirkazemi before Majles

On 21st December, Iran's Petroleum Minister Masoud Mirkazemi was called to Majles to discuss his performance. Majles deputies were concerned with lack of progress on compressed natural gas projects, South Pars developments, petrochemical feed, the negative gas trade balance, gas production, gas exploration, and gas distribution to villages. While he managed to escape impeachment, some parliamentarians remained dissatisfied.

Here is a breakdown of Mirkazemi's comments during this session:

> Roughly 38 per cent of villagers in Iran have access to gas.

> Gas transmission has reached 836 cities and 2,445 villages in the country.

> The government is ahead of the national gas distribution schedule.

> The Petroleum Ministry signed all South Pars contracts in 2010.

Mirkazemi has to walk a fine line between increasing gas transmissions to Iran's rural population and increasing gas exports. This often leads to conflict with those Majles members who are trying to extend gas transmissions to their constituencies and want investments in their respective regions. Mirkazemi is often forced to defend his decisions for implementing various projects and why he chooses gas exports when many Iranians still do not have access to gas.

For more news and expert analysis about Iran, please see Iran Strategic Focus.

© 2010 Menas Associates

Iran discovers more oil and gas reserves

The Iranian government has spent the last six months reassessing the country's oil reserves. Speaking to the media Iran's Oil Minister said that Iran has discovered more oil in the southern part of the country. The latest discoveries bring Iranian oil reserves to approximately 150 billion barrels.

The oil minister, Masoud Mirkazemi, told state media on Monday [11th October] that the new gas reserve in Hormozgan province, contains over 70 billion cubic metres of gas, 72 per cent of which is extractible.

“Over the course of the past six months, the country's oil and gas reserves have been reassessed… and according to the latest studies, the country's oil reserves have reached some 150.31 billion barrels,” said Mirkazemi.

He added that further exploration efforts are underway and that Iran expects to find more oil and gas by the end of the Iranian year, in March 2011. Iran has one of the largest non-renewable hydrocarbon reserves combined with its oil and gas reserves, with current oil production exceeding 3.8 million b/d.

Source: Hamsayeh

For more news and expert analysis about Iran, please see Iran Strategic Focus.

Iran to resume energy co-operation with Russia

Iran is to resume energy co-operation with Russia, despite the fact that Moscow backed UN sanctions against Iran earlier this year. Speaking about Russia's decision to support the UN, Russian President Dmitry Medvedev, cited Iran's disregard of Western fears over its nuclear programme as the reasons for Russia's change of allegiance.

Russian and Iranian energy ministers have signed a "road map" outlining forthcoming business plans including the possibility of a mutually funded bank to subsidise bilateral projects, and expand co-operation scope.

Talking about the UN sanctions, Iranian oil minister, Masoud Mirkazemi, said that Iran has not felt any impact on its energy industry, and that the only impact of the sanctions was that felt by international oil producers who had worked, or intended to do so, in the Islamic republic. Several Russian oil giants including Gazprom, Gazprom Neft and LUKOIL have put their operations in Iran on hold due to the sanctions, but are expected to resume work once plans are finalised, in the fourth quarter of 2010.

"We have not discussed trading operations, but if there is commercial interest and attractive terms Russian companies are ready to supply oil products to Iran without any doubt. We are neighbours and if a big project to create a south-north transport corridor is implemented I believe that we will create long-term supply opportunities, including for oil products," said Russia's energy minister, Sergei Shmatko.

Source: Reuters

For more news and expert analysis about Iran, please see Iran Strategic Focus.