. My colleagues and I are very serious in this regard. Several technical and commercial contract working committees have been established and each group is dealing with one of prioritized contracts."
Regarding the timeframe for the signature of the contracts, he said: "Fifty percent is up to us, and we are ready, but the remaining 50% depends on the other party to see if they are ready to sign contracts with us. I am not aware of their intentions."
He added: "Implementation of [new] oil contracts is necessary and inevitable for the development of the country."
Zangeneh reiterated that he is against production sharing agreements, saying:" Some people may be critical of the new model of oil contracts, but their criticism does not target the type of the service contract. They rather recommended production sharing contracts, which I have always been opposed to and am still opposed to in light of Iran's current political, social and economic conditions"
Gas Exports to Iraq
Zangeneh touched on Iran's gas export strategy, saying: "a Gas exports to Iraq has been finalized and will start soon. But before that we had the problem of opening LC with the Iraqi government, which I think will soon be resolved and exports from Naftshahr will start."
He said that Iran would be supplying at least 50 mcm/d of gas to Iraq, adding that the pipeline for that purpose was constructed.
Zangeneh also said that Turkey was among destinations for Iran's gas exports.
He added that gas exports to Pakistan and Afghanistan were also among Iran's gas strategies.
Highlighting the importance of Persian Gulf region for gas exports, he said: "The Ministry of Petroleum's policy is clear in this sector. Sufficient incentives have been offered, but political conditions must be also provided."
"Gas export is different from spot or single-cargo sales of commodities like gas condensate or oil products. For gas export, the two states need to enjoy very good relations," he said.
No Intention of Revenge on Qatar
Zangeneh also touched on the involvement of France's Total in the development of Phase 11 of South Pars, saying: "Our negotiations are under way quickly in terms of drafting the contract and I think that the talks will end soon. But they may be waiting for the result of Iran's presidential elections and then sign the contract."
Regarding rivalry with Qatar on recovery from South Pars, the minister said: "We have no intention of confronting Qatar. We have no such intention. We do our own job and they do theirs. They eye two development phases which total 56 mcm. We have to be serious in preserving the current level of our production."
Asked if Iran would take action as Saudi Aramco offers special discounts to certain refiners in Asia in four certain months, Zangeneh said: "Like in the case of Qatar, we seek no confrontation with anyone. However, we will try to maintain our market."
He said that demand for Iran's oil was higher than its supply.
"Some time ago an Indian party had announced it would reduce oil purchase from Iran and some had expressed concern. But I said that demand for Iran's oil outweighs our export and there is nothing to worry about.
"I don't worry at all and whenever it is necessary we will compete in this market while [respecting] commercial principles," said Zangeneh.
OPEC, non-OPEC Successful in Cooperation
Asked about Iran's position on the possibility of extension of OPEC's decision in its next ministerial meeting in May, Zangeneh said: "OPEC and non-OPEC countries have managed during this time to have new historic cooperation, that has been successful cooperation, and from month to month the level of OPEC and non-OPEC compliance has increased" on reducing their output.
The market has shown its seriousness, he said. "It has been shown in practice that this decision has been successful because although prices were falling for some 20 days they still rallied to around $55. It came out that OPEC was respecting its output reduction [deal]."
"Based on the information I receive from within OPEC and relation between OPEC and non-OPEC countries, I think that most members are willing to see this decision continue and if so, we will also support the decision of the overwhelming majority," he said. "If everyone abides by the decision, so we will continue it."
Asked to comment on the point that Iran would have to curtail its output as its production was hitting 4 mb/d, Zangeneh said: "If we make a commitment we will stand by our commitments. But there is a difference between the actual production level and the figure announced by secondary sources. However, we will remain faithful to the figure we agree upon."
Oil Deal with Rusia
Zangeneh said that Tehran and Moscow had reached agreement for Iran to sell 100,000 b/d of oil to Russia.
He said that Russia would pay in euros for the oil it would purchase from Iran.
"The Central Bank of Iran has agreed to earmark half this sum to the purchase of commodities and services from Russia. But no certain commodities and services have been specified and we have had no intention of doing so," said the minister.
"In fact any commodity and/or service that we would purchase from Russia would be compensated by half the value [of oil we sell to Russia] and we will receive payments for the rest in euros," said Zangeneh.
He said Iran would send oil cargoes to Russia in return for LCs provided by a well-known bank.
"The agreement has been signed, but it depends on the Russians to decide to start receiving the cargoes and then the relevant LC should be opened," said Zangeneh.