Mohammad Javad Yarjani

Head of Oil Ministry’s OPEC Affairs Division has said that Iran will begin producing over four million barrels per day (bpd) from November 1.
Mohammad Javad Yarjani told MNA on Monday that the increase in Iran output is in line with the recent decision by the Organization of Petroleum Exporting Countries (OPEC) to raise its quota by 500,000 bpd.
Rejecting unofficial reports that the country would produce 3.8 million bpd from November, the official said that Iran’s share in the new quota would be 70,000 bpd, meaning the output of OPEC’s second producer would reach four million bpd.
“The important issue is that Iran has enough potential to increase its production.“
Members of the producer group agreed on Sept. 11 to increase production for the first time in a year. The decision was a positive measure to remove concerns of consuming countries about rising oil prices, which reached above $80 per barrel recently.
Ten member states (except Angola and Iraq) should pump a total of 500,000 barrels per day into the market from November 1. The members will now target 26.3 million barrels a day after abandoning their earlier quota. Although many analysts contend that the hike in oil prices have nothing to do with supply and demand factor, many consuming countries blame OPEC for the rise.
Meanwhile, studies on the development of Jofair oilfield would be conducted by the end of current year to March 2008 once the Economic Council and Board of Directors of National Iranian Oil Company (NIOC) give the go-ahead, said the project manager Monday.
Naji Sa’douni, a Petroleum Engineering and Development Company (PEDEC) official, told PIN that the Islamic Revolution Guards Corps (IRGC) and other forces had started clearing the region of mines left behind from Iran-Iraq war and the operations would last four and a half months.
He added that a top contractor for the project would be selected and named within the next month.
According to the project manager, Jofair field holds 2.1 billion barrels of in-situ oil and 170 million barrels of oil will be extracted from the reserve during an ordinary discharge process within 25 years.

Unemployment rate fell to a single-digit figure this summer. The new development indicates the country’s economic potential. Despite US pressure, which impedes smooth implementation of some projects, Iran has managed to attract more investments and, as a result, lower the unemployment rate.
High capabilities of economic managers coupled with rising oil revenues have played a major role in achieving this. Unprecedented rise in oil prices boosted the government’s financial power, helping it to make more investments and implement more projects.
Figures released by Statistics Center show that unemployment rate fell to 9.9 percent this summer from 10.7 percent in the spring. The single-digit figure, achieved for the first time in a decade, is also a sign of seasonal change in job market. Usually, job market thrives more in springs and summers. It is natural for the rate to fall in the two seasons. The center further reported that the number of those without jobs declined by 0.3 percent this summer compared to the figure for last summer.
One of the policies contributing to this positive outcome was the support for small businesses with quick economic returns. Increase in economic growth is possible by expanding small industrial units and their activities. These enterprises help a country attain sustainable economic growth. Sustainable economic growth and production, for their parts, would effectively create jobs and improve economic welfare.
Some experts express skepticisms about the latest figure since the national economy is going through a special and tough condition. Therefore, some experts have reservations about the positive trend of national economy.
The fact is that investments went up in the past two decades. Extensive investments in various sectors are of high economic significance. Under the current circumstances that the country is facing problems in foreign affairs and is being threatened with sanctions, the need for supporting small- and medium-size industries to supplement giant projects is strongly felt.
The country’s need for macro investments in infrastructure has currently been removed.
A number of economists criticized previous governments for their failure to pay attention to ’intermediate and complementary industries’. The incumbent government has removed this failure.
President Ahmadinejad’s economic team has pursued a policy of developing small industrial units with quick economic returns.
Figures released by Labor Ministry showed that 714,000 projects with quick economic returns were referred to banks for loans during March 2006-April 2007. Some 433,000 of these projects were approved by banks whose implementation requires over 350,000 billion rials. The ministry has predicted that the projects would create about 1.2 million jobs. A main reason for the expansion of projects with quick economic returns is to slash banking profit rates.
Meanwhile, some economists expressed doubt about the success of the government policy to support businesses with quick economic returns. They maintain that it is possible that credits are allocated for unproductive projects.
Minister of Economic Affairs and Finance Davoud Danesh-Jafari however voiced concern over possible failure of the policy. He said that it is likely these projects would fail. The minister urged relevant authorities to extend financial support for economically viable projects. If state and private banks conduct careful evaluation before granting loans to small industrial units with quick economic returns, these agencies would have effective and positive impacts on the national economy. They can also generate jobs for young and motivated Iranian workforce.

A report by the United Nations Conference on Trade and Development indicates that Iran attracted more foreign direct investment (FDI) in 2006 compared to the year earlier.
According to the World Investment Report 2006, released annually by UNCTAD, Iran’s rankings in inward foreign investments went up two places to reach 133 among 141 countries. The country stood 138th in 2004.
Inward FDI grew by three-fold to reach $901 million in 2006. The figure was $306 million in 2005 and $282 million in 2004. In other words, the figures show that policies to woo foreign investors have been successful, Fars news agency reported on Monday.
Given that Iran holds huge world energy reserves, it can occupy a top 10 to 13 place in the world.
The country ranked ninth in the Middle East in attracting foreign investment. Turkey absorbed the biggest volume of foreign investment ($20 billion) in the region.
Meanwhile, the report added 2,000 large foreign firms and 16,000 subsidiaries of giant companies are active in the Middle East of which there are 103 in Iran.
Foreign investments in Iran exceeded $4.5 billion during 1990-2006, placing the country 14th among Middle East states.
In addition, the report shows that the Islamic state occupies sixth the slot in the Middle East in terms of outward FDI. Iran invested $386 million in other countries in 2006. The figure was about $60 million in 2005.
Foreign investors, particularly giant oil and gas companies have defied US pressure and continued to invest in this hydrocarbon-rich country in recent years. The Islamic Republic has also boosted economic ties with South countries. Iran currently has cordial ties with China--the Asian economic giant with double-digit growth and Venezuela--the world’s fourth largest oil exporter.

Since TCI is a large 140,000-billion-rial firm, five and not 10 percent of its shares will be put on sale.

Some seven billion shares Telecommunication Company of Iran (TCI) will be offered in the stock exchange on Dec. 22, deputy head of Privatization Organization announced.
Esmail Gholami told Fars news agency on Monday that five percent of TCI stocks will be floated in the bourse for price evaluation.
“Since TCI is a large 140,000-billion-rial firm, five and not 10 percent of its shares or equivalent of seven billion stocks will be put on sale.“
The company has 140 billion shares.
He stated that preparations for privatization of this giant state company have been made in line with Article 44 of the Constitution.
The article seeks large-scale privatization in key economic areas which were off limit for private enterprises for almost three decades.
The shares of company were planned to be offered at the stock market in October but the process was delayed due to its financial structure, the official added.
Earlier in July, TCI’s managing director, Saber Feizi, said that three foreign companies from Asia, Europe and the Middle East have submitted official requests to purchase the company’s shares.
Altimo, the telecoms arm of Russian conglomerate Alfa Group, has put forward its application to buy the company’s stakes through an Iranian company, the official said, adding that also, the English TelTech has asked to purchase TCI shares.
In a related development, managing director of the State Airports Company (SAC), Asghar Ketabchi said that management of one of airports would be transferred to private sector in the next three months.
He told ISNA that if the initiative proves successful, management of other airports would also been transferred to non-governmental sector.
The pilot plan is aimed at evaluating the capabilities of private investors in airport management, the official said, adding that talks are underway by SAC experts to choose qualified applicants.

The first Caracas-Tehran flight landed in Mehrabad International Airport late Sunday, managing director of Iran Air Public Relations said.
According to Fars news agency, Shahrokh Noushabadi stated that Venezuela’s state airline Conviasa began flights to Iran, with a stopover in Syria, on Sunday with the aim of strengthening commercial relations among the three states.
“Conviasa will initially operate just one flight a week but it eventually hopes to increase this to twice weekly,“ he said.
In March, Iran’s national flag carrier started operating flights to Venezuela, also via Damascus, in what a Syrian official said was a move to do away with all the ’harassment’ that Muslim travelers allegedly encounter in a post-September 11 world.
Iran and Venezuela are member states of the Chicago-based Convention on International Civil Aviation signed in 1944.
In a related development, Iran will soon build ten dairy factories in the Latin American country.
Iran and Venezuela have reached an agreement on constructing the factories at a cost of three million dollars.
Base on the contract, Iran’s Sut Machine Company is obliged to construct the factories in various Venezuelan cities.
“The company has built four dairy factories in this Latin American country so far,“ head of Sut Machine Company said, adding four more factories are under construction in the country.
“The Islamic Republic would also transfer know-how to Venezuela experts in building the factories,“ Gholamhussein Mohammadzadeh stated.
Tehran and Caracas have already signed 152 documents and agreements on cooperation. The two sides inked 11 documents during a recent visit by Iranian President Mahmoud Ahmadinejad to Latin America which included Venezuela.
The agreements mainly include cooperation in the fields of energy and oil, light and heavy industries, mining, agriculture and animal husbandry.
Venezuela is a strategic partner of Iran and among the most influential countries in Latin America. It has expanded relations with Iran in the past seven years in all fields.

Managing director of Iran Minerals Production and Procurement Company has disclosed that an agreement on exploration of Zarshouran gold mine in the northwestern city of Takab, West Azarbaijan would be signed with a private company within the next 45 days.
Ardeshir Sa’d-Mohammadi explained that the tender for exploiting Zarshouran mine was held and an Iranian private company emerged as the winner, Fars news agency reported.
He hoped that once the agreement is signed, executive operations would begin for constructing gold bar factory with production capacity of three tons a year.
The official added that Iranian technology would be used to explore gold from Zarshouran mine.
Sa’d-Mohammadi said that gold reserves of Zarshouran mine stand at 50 tons. He put the average carat of gold ores of the mine at over five grams per ton, adding Zarshouran is considered as one of the high-quality gold mines.
Once Zarshouran Mine becomes operational, it will meet a large portion of domestic demand for gold, he predicted.
He noted that the company is currently involved in four gold exploration projects.
The official recalled that Central Bank of Iran used to import gold bars for minting gold coins. However, after changes in Mouteh gold factory, the quality of gold bars produced in Iran increased.
He insisted that domestic gold bars’ purity rate is over 99.95 percent, adding the locally-produced gold bars delivered to Central Bank of Iran are of good quality.

Producers exported about 2,000 tons of shrimp to Europe annually.

Head of Iran’s Fisheries Organization said that it seams that following political problems created for Iran at the United Nations Security Council over its nuclear program, European Union has also stopped importing shrimp from Iran on the pretext that State Veterinary Organization has not submitted documents on shrimp tests on time.
Currently, European Union does not purchase Iranian shrimps, Shabanali Nezami Baluchi added, according to Fars news agency.
He explained that although State Veterinary Organization has dispatched documents on the safety of shrimps six months ago, the EU has yet to respond.
The official recalled that producers exported about 2,000 tons of shrimp to Europe annually. He added that given the production and export rates, there was no need for new markets. However, after the EU ban on Iranian shrimps, new markets should be found for this product, he said.
Nezami Baluchi continued that the area under shrimp farming stood at 2,600 hectares in the year to March 2007. This figure however declined by over 1,000 hectares in the year to March 2008, he added.
The official attributed the phenomenon to Gonou storm in the south which inflicted heavy damages on shrimp farms.