New oil minister approved by Majlis

After months of political infighting in Iran over who will head up the oil ministry, a suitable candidate has finally been found: Brigadier General Rustem Ghassemi , a member of the all powerful Revolutionary Guard or Sepah who for the past few years as headed up the Sepah's contracting arm, Khatam Ol Anbia (or Ghorb ), which has benefited from several lucrative gas contracts, including a $2 billion deal to oversee Phases 15 and 16 of the giant South Pars project.

But Khatam's ability to secure any external funding has been made almost impossible by US and EU sanctions, which have designated the company a supporter of weapons proliferation. Ghassemi, who unlike his predecessor Massoud Mirkazemi has some oil industry experience, was nominated by President Mahmoud Ahmadinejad at the end of July to be full-time minister and the following week received the all-clear from the Majlis or parliament. Ahmadinejad, who is desperate to secure control of the oil sector to increase his political clout, in June nominated a close ally Ali Aliabadi , to be caretaker minister. But Aliabadi, who was most recently head of Iran's Olympic Committee, wasnever going to get parliament's approval.

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Iran cuts gasoline subsidies but its petrochemical industry is thriving

Iran's Oil Minister Massoud Mir-Kazemi said that Iran produced more than one billion litres of gasoline to meet domestic demands. Addressing the country's lawmakers on Tuesday 21st December, he said that Iran defied expectations of shortages.

“Today, the Oil Ministry's staff are implementing the targeted subsidiary plans … and should any problems arise, we will tackle them within the hour,” said Mir-Kazemi.

“This proposal, which places the most pressure on the Oil Ministry, is being gradually implemented,” explained Mir-Kazemi, referring to President Mahmoud Ahmadinejad's economic reform plans.

Part of the plan is phasing out national subsidies for fuel and food, which Iran began implementing on Sunday 19th December. Speaking about it on national television Ahmadinejad told Iran that the plan would lead to a better and more healthy economy, as domestic energy consumption would decrease making it possible to export the extra reserves.

Mir-Kazemi seconded Ahmadinejad's expectations by saying that higher prices would encourage people to use less fuel and cause less pollution, which is a serious problem in the country's capital Tehran.

Under the new plan, the price of gasoline has risen fourfold from 1,000 rials per liter to 4,000 rials, and fuel beyond a person's quota – which is 50 litres per month – now costs 7,000 rials per litre.

Last week, Mirkazemi said that Iran intends to increase gasoline production capacity by 10 million litres per day. It currently produced 45 litres per day, and is the second biggest crude oil producer in the Middle East.

In other related news, Iran's Deputy Oil Minister for Petrochemical Affairs Abdolhossein Bayat has said that Iran's petrochemical industries exported over 10million tonnes of product in the first 9 months of the current Iranian year [March 21-December 21].

"More than 10mln tons of petrochemical products have been exported since the beginning of the current year, which is 22% higher than the same period in last year," said Bayat said.

He also said the country's petrochemical industry was now worth $6.2 billion, which showed a 47 per cent growth compared with revenues of petrochemical exports last year.

"This year will see a 10.5-mln-ton increase in the production capacity because of a 5.2 billion dollar investment in the petrochemical sector," said Bayat.

Sources: PressTv, Fars News Agency, Upstream

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UPDATE: Iran and the UN agree on more nuclear talks in January

Iran and the UN have concluded two-day talks about Tehran's nuclear programme. Iranian state-television said that another round of talks has been agreed for January in Istanbul.

The meeting ended on a positive note, with several of the participants describing it as “constructive” and having been conducted in a “good atmosphere”. However, it seems that no clear outcome has been reached as Iran's president has once again called on the UN to lift its sanctions.

Mahmoud Ahmadinejad was cited on Iranian state TV as saying that “cancelling the mistakes” of imposing sanctions would make the impending meeting in January more “fruitful”.

Speaking about the meeting a senior Iranian official said, "The negotiations will resume in end-January in Istanbul to discuss cooperation and find common points."

The international community fear that Tehran may be in the process of constructing nuclear arms, however Iran maintains that its nuclear programme is designed for peaceful civil use.

Source: BBC News

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Iran's uranium enrichment programme hit by computer virus

Iranian president, Mahmoud Ahmadinejad, has said that the country's uranium enrichment programme has been sabotaged by its enemies. It is believed that the programme has been infiltrated by the Stuxnet computer virus, which attacked Iran's computers in September and was said to have had little to no effect on the technology.

Last week, the UN said that Iran has temporarily suspended its uranium enrichment programme at the Natanz nuclear plant, due to unspecified problems. The West fears that Iran's nuclear programme is aimed at building nuclear weapons, while Iran continues to insist that the programme is designed for peaceful energy use.

"They succeeded in creating problems for a limited number of our centrifuges with the software they had installed in electronic parts. Our specialists stopped that and they will not be able to do it again," said Ahmadinejad during a news conference.

Analysts say that the computer virus has been specially configured to damage motors commonly used in uranium enrichment centrifuges by sending them spinning out of control. The complexity of the virus code suggests it was created by a "nation state" in the West, rather than an organised crime group.

Ahmadinejad and a number of his senior officials say the virus is proof that an “electronic war” has been launched against the Islamic republic by Israel and the West.

Source: BBC News

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Iran-Azerbaijan sign transport and energy co-operation agreement

The Iranian president, Mahmoud Ahmadinejad, has said that Iran will increase co-operation with Azerbaijan, especially in the transport and energy sectors. He added that an agreement was reached after in-depth talks with Azerbaijani president Ilham Aliyev.

"Iran-Azerbaijan relations are more than relations between two neighbouring, friendly countries. They are relations between two fraternal nations. No one can interrupt our relations," said Ahmadinejad.

According to official statistics, compiled by the Azerbaijani State Statistics Committee, trade turnover with Iran totalled $167.26 million in January-September; $76.87 million accounted for imports from Iran and $90.39 million for exports to the country.

The two countries are connected via the, 1,474.5km long, Gazi-Magomed-Astara-Bind-Biand gas pipeline. The route is a branch of the Gazakh-Astara-Iran gas pipeline, which was commissioned in 1971. The State Oil Company of the Azerbaijan Republic (SOCAR) is in the process of constructing a new compressor station in the Astara region, which will increase gas transportation to Iran by late 2010.

The gas supplied to Iran is used to deliver fuel to the Nakhchivan Autonomous Republic .Once the expansion of the gas compressor station in Astara is complete it will fully provide gas to Nakhchivan Autonomous Republic.

Source: Trends News Agency

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Iran ready to sell gas to Europe says Ahmadinejad

The Iranian president, Mahmoud Ahmadinejad, has said the Islamic republic is ready to sell gas to Europe via the European Union-backed Nabucco pipeline project.

"Europe needs Iranian gas and we are ready to sell gas to them at an acceptable price if they want," said Ahmadinejad during a news conference in Baku, Azerbaijan.

Iran has been hit by four rounds of sanctions imposed by the US and EU over its nuclear programme, which the West believes is aimed at developing nuclear weapons.

The $11 billion Nabucco pipeline is part of the EU's effort to diversify its natural gas supplies by bringing up to 31 billion cubic metres of gas annually from the Caspian region to an Austrian hub via Turkey and the Balkans.

Source: Reuters

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Iran and Lebanon sign 16 co-operation agreements

Iran has signed 16 agreements and an MOU with Lebanon, during President Mahmoud Ahmadinejad's official visit to Beirut. Under the terms of the MOU Iran and Lebanon will develop bilateral relations and co-operation in agriculture, energy, oil and gas, trade and handicrafts, tourism, higher education, health, environment, media, communications and information technology.

Contrary to speculations, the agreements did not include military aid to Lebanon. Earlier in August, Iran said that it would supply Lebanon with military equipment following US decision to cease aid to Lebanese Armed Forces over fears of Hezbollah's influence on the army.

Ahmadinejad, who is in Beirut for a two-day trip, presented Lebanon an Iranian-made technical device called "Nanoscope" designed to develop scientific and technical programs. The next stage of Ahmadinejad's trip is expected to entail a visit to the Hezbollah strongholds in southern Lebanon.

"We support a strong and unified Lebanon. We will always back the Lebanese government and its nation," said Ahmadinejad standing beside Lebanon's President Michel Suleiman.

Source: Xinhua

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Five killed at Pardis Petrochemical Company, Iran

Five people have died on Wednesday (4th August) in an explosion at the Pardis Petrochemical Company, in the southern port city of Assalouyeh. The incident occurred when a ruptured gas pipe was being welded, the sparks ignited the leaking gas and caused the explosion.

"Due to the explosion at the Pardis petrochemical plant some five people died and two others were injured," said Iranian state television's website.

According to a senior manager of the Pars Special Economic Energy Zone the incident occurred at about 2 pm local time, and was quickly extinguished by fire-fighters. The explosion and ensuing fire caused some damage to the petrochemical plant.

Iranian news agency, Mehr, reported that the second phase of the Pardis petrochemical complex, which produces urea and ammonia, was inaugurated last week in the presence of President Mahmoud Ahmadinejad.

Source: Reuters

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UN votes for new sanctions on Iran over nuclear issue

The UN Security Council has voted in favour of fresh sanctions against Iran over its nuclear programme.

The council voted 12 to two, with one abstention, in favour of a fourth round of sanctions, including tighter finance curbs and an expanded arms embargo.

US President Barack Obama said the sanctions were an unmistakable message on stopping the spread of nuclear arms.

Iran's President Mahmoud Ahmadinejad said the sanctions should be thrown in the dustbin like a "used handkerchief".

The US and its allies fear Iran is secretly trying to build a nuclear bomb, but Tehran insists its programme is aimed solely at peaceful energy use.

Heavy weapons

The Security Council resolution was opposed by Turkey and Brazil. They had earlier brokered a deal with Iran on uranium enrichment. Lebanon abstained.

The new sanctions were passed after being watered down during negotiations with Russia and China on Tuesday.

There are no crippling economic sanctions and there is no oil embargo.

Those passed include prohibiting Iran from buying heavy weapons such as attack helicopters and missiles.

They also toughen rules on financial transactions with Iranian banks and increase the number of Iranian individuals and companies that are targeted with asset freezes and travel bans.

There is also a new framework of cargo inspections to detect and stop Iran's acquisition of illicit materials.

Mr Obama accused Iran's leaders of "hiding behind outlandish rhetoric".

But he said the sanctions did "not close the door on diplomacy" and he urged Iran to "choose a different and better path".

For the full story please visit BBC News.

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