Showing posts with label Iran oil news. Show all posts
Showing posts with label Iran oil news. Show all posts

Monday, 26 September 2011

Iran: Buyback contracts needs revision

Addressing a meeting of local manufacturers and contractors Petroleum Minister Rostam Qasemi made several statements about Iran's oil industry. He noted that domestic buy-back contracts will be modified by adding some incentives to be attractive for local investors. He also indicated, 'If we intend to accelerate the development of joint oil and gas fields, the interest rate paid to domestic banks, manufacturers, contractors and even individuals (through offering rial-denominated bonds) should increase.'

Iran contractors face tough demands from domestic banks, he pointed out, including huge guarantees and 20 to 30 per cent interest rates; these demands jeopardise work timetables and the viability of projects. Each year more than $50 billion is needed to be invested in oil industry infrastructure. Some of these funds have been taken into account in the Ministry's budget but the rest, said Qasemi, should be provided through other channels such as selling bonds.

Petroleum Ministry plans to sell foreign exchange bonds, to increase energy funds at local banks, and to sell paper oil on bourse. The Ministry will also be able to take $20 billion from the National Development Fund (NDF). The funds could be lent with low interest rates to private sector and local manufacturers involved in oil industry activities.

In the meantime, NIOC managing director Ahmad Qalebani said that from 21 September 2011 new oil and gas contracts will be signed with new methods and formats that will make them more attractive for contractors and financial organisations.

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

© 2011 Menas Associates

Monday, 20 December 2010

Mottaki says dismissal “un-Islamic” and “offensive”


Former Iranian foreign minister, Manouchehr Mottaki, has called his sacking “un-Islamic” and “offensive.” Mottaki who was fired, by President Mahmoud Ahmadinejad, while on an official state visit to Senegal, said he had not received warning about his impending removal from office.

Ahmadinejad's office has not released a statement regarding the sacking, but speculations have emerged that the dismissal is indicative of a power struggle in the government. Upon news of the dismissal several senior Iranian officials voiced criticism over Ahmadinejad decision. Since then, the Iranian parliament speaker and close ally of Mottaki, Ali Larijani, told the parliament: "The right way was that the change should have happened with prudence and observing dignity and not during the visit."

Speaking to the Mehr news agency, Mottaki said that the way his dismissal was handled was “outside the practices of politics.” He also said that he was not informed of the “appointment of a new person within 24 hours of my departure for the mission."

On Saturday 18th December, the foreign office held a function to officially introduce his replacement, nuclear chief Ali Akbar Salehi, even though the event was also supposed to be a farewell ceremony for Mottaki. Some senior officials, close to Ahmadinejad, have said that Mottaki was informed of his impending dismissal before travelling to Sengal.

Ahmadinejad and Mottaki have a long history of mutual distrust and while the president has managed to eject a critic from close quarters, some believe that the move may cause problems in a parliament increasingly disenchanted with the presidency.

The news of Mottaki's comments comes amid reports that Iran has cut the country's fuel and food subsidies, which means a four-fold increase in the price of petrol and reduced subsidies for basic rations such as bread. The initiative took effect on Sunday 19th December, with plans for subsidies to be suspended permanently within the next five years.

Under the initiative, every car will get 60 litres of fuel per month at a subsidised price of 40 cents per litre, up from 10 cents per litre. The Islamic republic said that it pays out in excess of $100 billion in subsidies each year, with bread subsidies accounting for another $4 billion annually.

Some world economists fear that an increase in prices will also be applied to domestic amenities such as water, electricity, and other consumables such as flour and thus increase inflation already estimated at 20 per cent.

Iran's subsidy initiative restructure is said to be part of the government's plant to decrease domestic demand for fuel, thereby making the country more fuel-efficient and prosperous from its natural resources.

Sources: BBC News, CNN, The Washington Post, Trend, Press TV

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

Wednesday, 11 August 2010

Ghana and Iran to work closely together to develop Ghana's oil industry


Ghana's Vice President, John Dramani Mahama, has said that Ghana and Iran should work closely together for the benefit of Ghana's fledgling oil and gas industry. Addressing an Iranian delegation, led by Dr Sadigh Khalilian, Iran's Minister for Jihad Agriculture, Mahama said that Ghana has a lot to learn from Iran's experience in oil production and exploration.

"Considering your immense experience in both on and off-shore oil exploitation, I will suggest that we have an effective partnership that will equip Ghanaians with the technical know-how in oil production," said the Vice President.

The delegation is on a two-day visit to Ghana to discuss co-operation in a number of sectors including agriculture and education. Mahama applauded the Iranian government for its support so far, and said that he hoped that Iran would help develop Ghana's oil and gas sector.

Dr Khalilian said that the Iranian government was keen to hold more bilateral discussions for the benefit of both countries, and added that his government was ready to partner Ghana in the areas of agriculture, health, education and energy and invited both the President and the Vice President to visit Iran to conclude talks.

"We are interested in carrying out a number of collaborations with African countries and we really want Ghana to be one of our major partners," he said.

Source: Ghana Web

For more news and expert analysis about Ghana, please see Ghana Politics & Security. For more news and expert analysis about Iran, please see Iran Strategic Focus.