Private Sector Prioritized
The chief of staff of Iranian President Hassan Rouhani has said that the Iranian government supports the private sector’s investment in the petrochemical sector.
“The unswerving position of the Iranian government is to support the contribution of the private sector in these [petrochemical] megaprojects. This support is not temporary and will be long-term and permanent,” Mohammad Nahavandian said in a meeting with Mohamed Thani Murshed Al Rumaithi, Chairman, Abu Dhabi Chamber of Commerce & Industry (ADCCI), in Tehran.
Nahavandian said a new chapter has opened in Iran’s relations with other countries since Rouhani took office last August.
“The relations between the Islamic Republic of Iran and the United Arab Emirates (UAE) are beyond neighborly ties and we look at the UAE government and nation as a Muslim brother with common interests and objectives,” he said.
Nahavandian said Iran and UAE share many points in terms of economic plans. “We believe that the economic relations between countries in the region should improve for peace and security to be established in the region,” he said.
Nahavandian said the main responsibility for the development of economic relations between the countries in the region falls upon the private sector and investors.
“The Iranian government believes that it should not administer the economy, but it has to let the private sector work. The government should provide support for business,” he said.
He added that Iran and the UAE should benefit from the present circumstances to broaden their trade exchanges.
Nahavandian said the two countries should make serious plans for joint venture projects.
He said that President Rouhani envisages megaprojects for the development of Iran. He referred to the planned development of Iran’s southern coasts from Chabahar to Khorramshahr, construction of coastal railroad and construction of highway for connecting southern ports to Kenarak free zone. Nahavandian said these projects require hundreds of billions of dollars in investment.
He said Iran’s southern coasts are expected to be connected to Central Asia.
Nahavandian gave a positive assessment of Iran-UAE relations, saying signs have emerged of strong ties between the two countries.
“I believe that by adopting the approach of developing and broadening economic relations, the countries in the region will help tensions subside greatly and clam will be created among Islamic states,” he said.
“Those who are fuelling flames of sectarian tensions in the region do not want Muslim countries to enjoy a good future and we hope that Iran-UAE relations would set an example of bilateral ties,” said Nahavandian.
For his part, Al Rumaithi said Iran and UAE chambers of commerce have agreed to establish Iran-UAE Cooperation Council in order to remove obstacles to commercial ties.
He said the UAE government is determined to improve cooperation with Iran through private sectors.
Al Rumaithi said the positive outcome of Iran’s nuclear talks with six world powers encourages the UAE government o make efforts for more cooperation with Iran.
He also called on the Iranian government to facilitate investment by the UAE private sector in Iran’s projects.
NIDC to Run Casing in South Azadegan
Iran’s Petroleum Minister Bijan Namdar Zangeneh said the drilling and completion of 40 wells in the massive South Azadegan oil field has been commissioned to National Iranian Drilling Company (NIDC).
The development follows the termination of contract with China National Petroleum Corporation (CNPC) due to the Chinese company’s foot-dragging.
“The drilling of 40 wells has already been assigned to NIDC and two tenders are set to be launched for the drilling of 40 more wells,” Zangeneh said.
The minister said the number of wells in South Azadegan, which Iran shares with Iraq, would reach 150 in the first phase and 185 in the second phase.
In the meantime, Iran is to put to tender construction of installations in South Azadegan field.
CNPC lost the project after it failed to meet a 90-day deadline set by Petroleum Ministry to fulfill its obligations with regards to drilling wells in South Azadegan field.
The initial project for the development of South Azadegan was awarded to CNPC by National Iranian Oil Company (NIOC) in 2009 under a 2.5-billion-dollar buy-back contract.
NIGC Presents Investment Packages
Foreign investors welcomed opportunities for investment in Iran’s gas sector during the 21st World Petroleum Congress in Moscow, a deputy petroleum minister said.
“Given [Iran’s nuclear] talks with the P5+1 and the expansion of energy diplomacy, different countries showed inclination for investment in Iran,” Hamid-Reza Araqi said.
Araqi, who is also managing director of National Iranian Gas Company (NIGC), said the meetings held on the sidelines of WPC in the Russian capital were about preparing the grounds for foreign investment in Iran.
He said that the NIGC offered packages for investment in pipeline, refining and storage, adding that Russia was among countries that welcomed investment in Iran.
He said he exchanged views with top Russian officials about investment in Iran.
“Russian investors, banks and contractors voiced readiness for presence in different sectors in Iran,” said Araqi.
He said that most participants that attended Tehran’s recent Oil and Gas Show were present in the WPC.
“Iran has defined projects for the private sector in order to attract them,” Araqi said.
He said that Iran is pursuing its privatization drive seriously.
Iran Oil Output Up as Nuclear Talks Go On
Iran’s President Hassan Rouhani said on Saturday the country’s oil production has increased as talks are under way with world powers over Tehran’s nuclear program.
“As negotiations go on with the P5+1 group, Iran’s oil production capacity has increased and this issue has nothing to do with the [Western] sanctions,” Rouhani told a press conference in Tehran.
The president said Iran is now ready to attract 200 billion dollars in investment, adding that Iran’s oil sector enjoys great potentials for such investment.
Rouhani also said that Iran would no longer face tough sanctions even if no agreement is reached with the six powers.
“Iran will continue enrichment... and the sanctions have to be lifted,” he said.
Rouhani said his administration is making efforts to cut Iran’s inflation rate to 25 percent by the end of the current calendar year in March 2015.
He said unemployment rate has been reduced to 10.5 percent and month-on-month inflation has been slashed from 43 to 16 percent.