Gholamhossein Nozari

Iran holds a significant share of global gas reserves and is drawing up a strategy to make extensive use of this source of energy, said Oil Minister Gholamhossein Nozari in an OPEC-sponsored symposium ’Energy for Sustainable Development’ in Riyadh, Thursday.
He elaborated on Iran’s policies to make optimal use of resources, promote living standards and move toward sustainable development, PIN reported.
Iran, said the minister, had drawn up long-term strategic plans to ensure energy supply both at home and in international markets. Regrettably, he added, these plans have faced obstacles and delay due to unilateralism of certain powers.
“Although Iran holds one of the world’s largest hydrocarbon reserves and is the main producer of crude oil and natural gas, it is implementing demand management to increase crude and natural gas export and to cut dependence on imported oil products,“ Nozari added.
“We are increasing the share of gas for domestic use by 70 percent,“ he said.
“To this end, gas has replaced oil in recent years in different economic sectors.“
The government was providing financial support for plans to use natural gas by replacing liquid fuel with gas in industrial plants, equipping cars with gas-fueled system, setting up compressed natural gas (CNG) stations, fixing different rates for gasoline to car owners and investing in gas projects nationwide, he pointed out.
Iran has managed to cut consumption by rationing gasoline and outlining a transparent diesel plan, he said.
Meanwhile, Nozari said Thursday that an increase in OPEC quota would have no impact on global oil prices.
“Evidence shows there is adequate oil supply in international market,“ he said, adding that many reasons, including the declining value of US dollar, were responsible for global oil hike.
OPEC members, he said, were fully authorized to sell oil in other currencies.
In another development, Vice President for Oil and Gas Affairs Kazem Vaziri-Hamaneh said that the new articles of association of National Iranian Oil Company were approved by the cabinet and would be submitted to the Majlis.
He explained that a holding company and four specialized mother companies would be created, adding that their articles of association have been approved, Fars news agency reported.

Visiting Moroccan Foreign Trade Minister Abdellatif Mazouz conferred with Commerce Minister Massoud Mir-Kazemi on ways of expanding economic cooperation between the two countries.
At the meeting, both sides called for increasing trade by using their economic capabilities and potentials, IRNA reported.
It is necessary for both sides to prepare grounds for active private sector participation in Iran and Morocco, Mir-Kazemi said.
Underlining the need to implement mutual agreements between the two countries such as the accords on avoiding double taxation, preferential tariffs as well as customs cooperation, he voiced Iran’s readiness to establish a shipping line between the two countries. Iran, which ranks 14th in the world in maritime transportation, is capable of increasing trade to North, South and East Asia, he said.
The Moroccan minister, for his part, called for the formation of a joint committee to study the expansion of trade.
Referring to his country’s status as the gateway for exporting goods and services to Europe, he said, “The opportunity could be seized by businessmen.“
Trade between Iran and Morocco currently stands about $20 million annually.
Meanwhile, Mazouz also held talks with Iran Khodro Managing Director Manouchehr Manteqi, Fars news agency reported.
Latif expressed his country readiness to buy Soren, a type of Samand sedan which is known as ’Iran’s national car’.
Referring to Iran Khodro’s international standards, he underlined Iran’s efforts to produce a new generation of car and Soren has attracted the attention of Moroccans.

Only 20 percent of Iran's saffron exports are packaged within the country.

Minister of Agriculture Jihad Mohammad Reza Eskandari has announced that the decline in Iran saffron export in 2006 was not due to the high price of saffron.
According to ISNA, he noted that there is no country in the world, which can replace the Islamic Republic in terms of production and export of red gold (saffron).
Noting that 90 percent of the world’s saffron are produced in Iran, Eskandari stated that only 8 percent of the international saffron output is produced by other countries and Iran stands first in red gold production.
He added some restriction will be placed on bulk export of saffron.
“A base price of 7.3 million rials ($782.75) per kilo has been set by producers and exporters this year,“ he added.
“We are not interested in increasing the price of saffron since price hike of saffron will endanger Iran’s presence in global markets,“ he said.
Given the importance of international market, Eskandari warned that rise in saffron prices will harm farmers in the long run although they may earn huge profits in a short period and Iran may lose its international customers.
Eskandari noted that the medicinal use of saffron should also be considered. “Although the saffron crop does not need much water, severe nine-year drought that hit southern parts of Khorasan Razavi province, the largest producer of the luxury spice, has reduced saffron production in the northeastern province,“ he elaborated.
Saffron, the dried orange stamen of the crocus flower, has a rich history in Iran as it is widely used in Persian cuisine, particularly rice and sweets.
The delicate flowers of saffron are harvested only in mid-autumn. Saffron flowers begin to grow after the first rain and the blooming period is usually in mid-October.
Although Iran produces the top-quality saffron, poor packaging and improper export policies have led to the market being dominated by other countries.
Some 60 percent of Iranian saffron are currently distributed internationally under Spanish and UAE trademarks. Only 20 percent of Iran’s saffron exports are packaged within the country.
It is also cultivated in India, southern Europe, particularly Spain, and is used in a number of Mediterranean dishes.

At a time when the price of oil has reached unprecedented proportions, some sections of the media try to give the impression that public opinion in consuming countries eye the Third OPEC Summit which is slated to open in Riyadh today November 17 as a venue for reducing price.
Organization of Petroleum Exporting Countries, a permanent and intergovernmental organization, was created at the Baghdad Conference in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
Generally, the target of OPEC is to safeguard the interests of member-states. The founding members created OPEC under the impression that consumers and industrial countries did not pay heed to the interests of producing countries. Establishment of OPEC was concurrent with the formation of national oil companies in producing countries which was aimed at managing their oil resources. It is not yet clear to what extent national oil companies have been able to ensure the best interests of producing countries.
OPEC has enlarged through the years. However, despite its 47 years of activities, OPEC did not score significant success. This is due to member-states ignoring the realities.
Since its inception, western countries have labeled the organization a cartel. This attitude of the West overshadowed OPEC’s endeavors for controlling prices until the Arab oil embargo of 1973 which was aimed at punishing western countries for their support for Israel in the Arab-Israeli War.
After this era, OPEC was politicized and thus departed from its original economic nature.
In fact, in wake of the embargo’s adverse impact on western economies an unrealistic postulate was developed by some producers suggesting that oil could be used as a weapon. Nevertheless, as a result of measures adopted by industrial countries in recent years, oil is not viewed as a weapon against the West any longer. The crux of the matter is that oil is gradually getting closer to the fundamental idea that it is a commodity more than anything else.
The gathering of OPEC heads of states in Riyadh would not play an important role on the oil market. Some western resources reiterate OPEC ability to reduce oil prices.
The gathering of OPEC leaders will boost friendship and brotherhood among members and increase the transfer of technical know-how in the oil industry.
Also, OPEC member should pay attention to another issue. As per statistics in 2007, revenues of oil producing countries would reach $700 billion or more.
The oil price is inching towards $100 per barrel and OPEC basket prices have risen to over $90.
This originates from oil market perspective which was drawn in the recent report of International Atomic Energy Organization.
Current oil reserves cannot match consumption in the future.
It is not clear whether investments in the sector could result in sufficient energy production and meet growing demand.
This has raised worries leading to increase of crude oil price. The hike in oil prices may reduce future demand and make investment in other sources of energy a sensible choice.
Oil-producing countries should place programs for using petrodollars as a result of the increase in prices high on their agenda.
The programs should be compiled to meet sustainable development goals. OPEC should help member states avoid squandering their resources.

A view of Korpedze Gas Refinery which was built by Iranian engineers

Turkmenistan’s oil and gas minister emphasized the importance of Korpedze-Kordkoy gas pipeline.
Speaking at the International Oil and Gas Seminar in Ashkhabad, Bymurad Haj Mohammedov also explained that the $190 million pipeline, inaugurated in 1996, is the first natural gas export pipeline in Central Asia to bypass Russia for exporting gas directly and independently, IRNA reported.
According to the terms of the 25-year contract between the two countries, Iran agreed to take between 177-212 bcf of natural gas from Turkmenistan annually, with 35 percent of Turkmen supplies allocated as payment for Iran’s contribution to building the pipeline.
He put the capacity of the pipeline at eight billion cubic meters, predicting that it could be increased up to 14 billion cubic meters.
The minister said that Iran and Russia were the major customers of Turkmenistan natural gas. About 46 billion cubic meters of gas were exported to these countries in 2006, he added.
He referred to Trans-Afghan, Trans-Khazar, and Pipeline along Caspian coast as the other gas projects of the country.
Turkmenistan President Gurbanguly Berdymuhammedov visited Tehran in October. In a meeting, Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei said there are ample grounds for expansion of economic cooperation between Iran and Turkmenistan, mainly in the gas sector.
The Turkmen president, for his part, said his government has made all-out efforts to broaden ties with Tehran.

South Pars development plan will never face shortage of funds as it is fully backed by the Iranian government, deputy oil minister for planning affairs, Akbar Torkan, has said.
Torkan noted that the cabinet has urged that the field be developed at the earliest, PIN reported Thursday.
Wherever foreign investors have not shown interest in some of South Pars projects, the government has provided the fund to avoid them getting stalled, said the official on Wednesday.
Still, the project received 38 percent in extra funds during the Iranian year to March 2007, he added.
He rejected speculations that oil projects have come to a halt due to lack of funds.
Turning to South Pars development phases, Torkan announced that Phase VI is predicted to begin operation on December 15.
Development of South Pars is Iran’s largest energy project which has already attracted billions of dollars in investment.
The South Pars gas field, jointly shared by Iran and Qatar, is 80km to the south of Asalouyeh.
Asalouyeh lies on the Persian Gulf coast, some 270 km southeast of the provincial capital of Bushehr.

Gholamhossein Nozari

Iran’s representative to the International Atomic Energy Agency said questions and ambiguities concerning uranium enrichment activities and centrifuges have been among the main issues remaining about Iran’s nuclear energy from the past.
According to IAEA Chief Mohamed ElBaradei’s report, Iran’s position has been in line with the agency’s findings, Ali Asghar Soltanieh was quoted as saying by the Persian daily Iran.
The ElBaradei report proves that there is no logical or technical reasons to take up Iran’s nuclear issue at the United Nations Security Council and there is no legal backing for such a move, he noted.
He noted that the legal text pertaining to centrifuge installations in Natanz, Isfahan province obtained during IAEA inspections has been finalized and implemented. This, he said, is a major step towards implementing the findings within a disciplined and legal framework with high efficiency.
Highlighting that the IAEA report leaves no room for accusations and finding pretexts, he said that the country’s cooperation with IAEA and ElBaradei’s new report leaves no ambiguity about the peaceful nature of Iran’s nuclear activities now or in future.
By resolving the remaining issues and finalizing the index document of Natanz installations, Iran has given a proper picture of its past, present and future activities in this field to the international community, he underlined.
Soltanieh urged those who believe that Iran’s nuclear issue could be solved within the framework of the IAEA to end any moves outside the IAEA, particularly in United Nations Security Council, as this would weaken the atomic agency and its fruitful cooperation with Iran.
Regarding the Non-Aligned Movement’s stance on Iran’s nuclear issue, he said that a comprehensive report was delivered in recent NAM meeting on Iran’s cooperation with IAEA particularly major steps taken on P1 and P2 centrifuges. Many ambassadors and representatives of NAM commended Iran’s measures during the session, he added.
He elaborated that it was decided in the same gathering that given the statements of some Zionist officials and criticisms against ElBaradei, a joint communiquŽ be prepared and read at the Board of Governors meeting. In addition, it should be placed on IAEA’s website, he observed.
Prepared by NAM, Group-77 and China, the communiquŽ will object to irresponsible comments and emphasize IAEA’s neutrality, which will prevent the interference of some countries.