Sidelines of German Businessmen’s Visit
The recent high-profile visit to Tehran of a high-ranking German economic delegation was of high significance for both sides. Many top businessmen attended the meeting presided over by Iran’s petroleum minister Bijan Zangeneh and German economy minister, Sigma Gabriel.
Besides them, a large number of German journalists and famous Iranian neurosurgeon Professor Samiei traveled to Tehran during the visit.
German Journalists
Senior German journalists came to Tehran to cover Gabriel’s visit. Martin Grivel, chief editor of Die Welt, had come in person. His presence was indicative of the significance of political and economic relations between Iran and Germany, particularly following the recently reached nuclear deal.
Grivel told Iran Petroleum that the nuclear agreement is a good opportunity for Germany to benefit from investment in Iran which is among the largest oil producers in the world. He said providing enhanced oil recovery technologies to Iran is one of objectives of Germany’s presence in Iran’s market.
The top journalist also said that German media have generally welcomed Iran’s nuclear agreement with six world powers. Many German papers and channels are of the view that this agreement would positively affect political and economic relations between Iran and Germany. He said that Iran enjoys very valuable potential in the petrochemical industry, making the country attractive for the Germans.
Medical Cooperation
Professor Samiei, who is based in Germany, was among the German delegates.
“No sanctions against science and technology will be successful,” he said, adding that Iran-Germany medical cooperation every during years of sanctions bears proof to this fact.
Samiei expressed hope that Iran and Germany would increase their cooperation in medical sector, as well as in political and economic issues.
5-Billion-Euro Export
Daniel Bernbeck, head of German-Iranian Chamber of Industry and Commerce, was among the guests in the meeting. He said that German delegation's visit to Tehran showed how much the Germans were interested in economic cooperation with Iran.
Bernbeck said a major obstacle to economic cooperation between Iran and Germany is banking system restrictions, expressing hope that they would be lifted soon.
He said Germany is ready to export five billion Euros of commodities and equipment to Iran, immediately after the removal of the sanctions.
Bernbeck speaks Persian fluently.
Germany Seeks Revival of Opportunities
At the end of the visit, foreign journalists cross-examined Zangeneh.
Asked what Iran and Germany would do after this visit, Zangeneh said: “Relations between the companies in two countries, particularly in operation projects, depend on the resolution of banking and insurance issues.”
He also said that the fifth meeting of Iran-Germany Business Council is planned to be held later this year, after a 14-year hiatus.
Zangeneh also said that Iran has never been a direct supplier of oil to Germany, adding that Iran can export oil to Germany directly.
“German companies are willing to be present in different petrochemical, oil and equipment supply sectors, which they have lost in recent years and which they are trying to regain,” he said.
Zangeneh said: “We are now at the beginning of a new road in the country’s economy and we have set a cornerstone whose success requires effort and endeavor.”
Regarding demand by some Europeans for presence in Iran, the minister said: “A large number of companies are willing to be present in Iran and negotiate with us.”
He noted that the German delegation was a political one visiting Tehran.
$200b Projects
Amir-Hossein Zamani-Nia, Iran’s deputy petroleum minister for international affairs and commerce, told journalists that there are many oil, gas and petrochemical projects up for investment.
He said that Iran’s petrochemical sector needs $80 billion in investment over the coming 10 years, adding that $120 billion worth of projects has been defined for the petroleum industry for the coming four to five years.
“These projects will be introduced at international level so that we would decide under competitive conditions which companies we could work with,” said Zamani-Nia.
Noting that the international atmosphere has changed vis-à-vis Iran, he said Iran will be signing oil contracts with foreign companies based on competitive conditions.
Zamani-Nia said the German delegation’s visit to Tehran proves a change in international attitude towards Iran.
“This visit shows Iran has returned to the status it deserves. Economic, commercial and cultural interactions will be also back to normal,” he said.
Asked about Iran’s planned oil and gas production hike after the removal of sanctions, Zamani-Nia said: “Iran is following up on enhancing production of crude oil and petroleum products and all contracts and projects will be presented at international level.”
In response to a question about the terms and conditions of contracts after sanctions have been lifted, he said: “We are now in a position for which we have the right to choose, and all contracts will be competitive.”
Zamani-Nia said Iran’s oil production is set to rise 500,000 b/d in the coming three to four months, adding that Iran would add 1mb/d to its oil output in one year.
Asked if OPEC would hold any emergency meeting after Iran increases its oil production, he said: “In the last OPEC [ministerial] meeting, Iran’s petroleum minister expressed his definite view to OPEC member states both orally and in written. Now we expect OPEC member states to open space for Iran’s oil.”
Regarding gas exports to Germany, he said that the gas export plan is a long-term one whose different economic aspects should be examined.
“At current prices, gas exports to Germany would not be a cost-effective project unless conditions are changed and gas exports would be done as LNG.”
Zamani-Nia said liquefied natural gas (LNG) exports would be economical “but at present, we don’t have an LNG industry with such a capacity.”
“Iran has a large-scale LNG plan which is stagnated due to the sanctions. In case of more understanding, Iran LNG projects would come on-stream and that will benefit both sides,” he said.