Majlis Outlines New Tasks of Oil Ministry

Domestic Economy Desk

Based on a parliamentary ratification on Saturday, Oil Ministry is obligated to launch an integrated system for measuring the level of production of oil and gas as well as their processing, transport, refinement, distribution and exports by the end of 2012.
During the Majlis open session, the MPs also clarified the duties of the government for exploration, exploitation, production and expansion of industries related to oil and gas, IRNA reported.
The legislators ratified Article 122 of the Fifth Development Plan (2010-2015) according to which Oil Ministry should help the private and cooperative sectors in projects for completing the existing refineries of the country upon approval of the Council of Economy. This assistance should be in the form of granting facilities for investments from internal sources of National Iranian Oil Refining and Distribution Company (NIORDC).
Oil Ministry has become obligated to utilize the needed expert workforce for carrying out tasks related to the law for management of exploration, development and production.
Upon Majlis ratification, the ministry should issue exploitation permits to its affiliated companies without granting them the right of ownership of the produced oil and gas. The ministry is duty-bound to supervise exploration, development and production operations of the said companies in terms of production level and health, safety and environmental criteria.

New Technologies
The MPs approved that in order to upgrade the scientific, technological and innovative might of the oil industry the ministry should allocate one percent of the annual credits designated for developmental projects of its related companies for expanding prioritized oil, gas and petrochemical technologies. The ministry should also use these technologies in related industries and improve the existing machineries.
The legislators decided that the ministry should present an annual report to the Majlis Education and Research Commission on use of technologies and innovations in the oil and gas sector.
Furthermore, in a bid to increase the coefficient of recovery of oil and gas reservoirs by one percent during the Fifth Development Plan, the lawmakers voted that the ministry should compile a comprehensive plan for protecting hydrocarbon resources both offshore and onshore and implement it efficiently.

Fuel Dispatching Services
Based on another ratification of the parliament, the ministry compiles a comprehensive plan for increasing fuel dispatching services to ships in the Persian Gulf and the Sea of Oman by at least 20 percent per annum via the non-governmental sector. The ministry is also tasked to render the necessary support to the non-governmental sector in this regard.
The legislators also agreed to allocating two percent of the revenues generated from export of crude oil and natural gas to oil- and gas-rich provinces and also the less developed areas of the country.
According to the ratification, the government should allocate one-third of the sum to oil- and gas-rich provinces and the remaining two-third to less developed areas.

Bi-Fuel Kit Factory Opens

The plant for producing the kit for bi-fuel (kerosene and gasoline) vehicles was inaugurated in Ardebil on Saturday.
Addressing the inauguration ceremony of the factory, Managing Director of Rasa Pisheh Arya (APK) Company Farid Akbarzadeh said the kit for bi-fuel systems can be installed on gasoline powered vehicles as of the next week.
“Production of this kit is in line with the notion of optimum use of new energies. Given the contracts signed so far, the factory can produce 300 kits per day,” he added, Mehr News Agency reported.
He recalled that technical specifications of the kit lead to the reduction of fuel consumption and pollutants, high safety, increasing lifetime of engine, and economic feasibility.
He said with this system fuel consumption decreases up to 50 percent given the type of the vehicle.
“By installing this kit, air pollution caused by vehicles will decrease by over the two-thirds,” he noted
He said currently 26 million liters of kerosene is produced per day in the country some 17 million liters of which are used domestically and exported.
“The remaining nine million liters is injected to natural gas reservoirs,” he pointed out.
Akbarzadeh emphasized that the factory has generated 63 new job opportunities.

60 Companies in Malaysia Expo

Iran has inaugurated a four-day trade exhibition at the Petronas Twin Towers Convention Center in Kuala Lumpur, Malaysia.
At the opening ceremony on Thursday, the Iranian ambassador to Kuala Lumpur said that such events provide a good opportunity for Iranian manufacturers and exporters to showcase their products and can help them expand their businesses, Mehr News Agency reported.
Ambassador Mohammad Mehdi Zahedi noted that the trade transactions between Iran and Malaysia increased to $1.1 billion in 2009 and stated that Association OF Southeast Asian Nations (ASEAN) countries can be a niche market for Iranian businessmen.
Sixty Iranian companies have taken part in the show in 10 different groups of products such as foodstuffs, rugs, hospital equipment, furniture, handicrafts, and computer software.
Last week, Iran held an exclusive expo in Tajikistan, gathering many Iranian and Tajik businessmen and investors in the capital Dushanbe.
Around 75 Iranian firms from various economic sectors showcased their products at the Kakhe Barbad state complex in Dushanbe.
Around 75 Iranian firms from various economic sectors showcased their products at the Kakhe Barbad state complex in Dushanbe.

Construction Ties With Algeria to Expand

Iran and Algeria have boosted their ties in the sectors of construction, development, trade and infrastructure, housing and urban development minister announced.
Speaking at the first meeting of the two countries’ High Joint Commission on Saturday, Ali Nikzad said the meeting is planned to review the existing potentials for the expansion of bilateral cooperation, Fars News Agency reported.
“We should strive to pursue (boosting) the economic relations between the two countries at a level higher than the past through exploiting the existing potentials,” the minister noted.
Given the Algeria plan for mass construction of housing units and Iran’s experience in building housing units through industrial methods, Algeria expressed willingness for several Iranian firms to participate in the construction projects in the country, Nikzad added.
The two countries will bolster collaborations in bridge and dam building, establishing oil and gas pipeline, implementing petrochemical projects and activating bilateral businessmen council, he noted.
The first meeting of Iran-Algeria High Joint Commission was a follow-up to Iranian President Mahmoud Ahmadinejad’s visit to Algiers.
Ahmadinejad had a several-hour-long stop in Algeria prior to his visit to New York in late September, where he conferred on the bilateral relations as well as regional and international developments in a meeting with his Algerian counterpart Abdelaziz Bouteflika.
During the meeting, Ahmadinejad pointed to the age-old relations between the two countries as well as their historical, religious and cultural commonalities, and said these commonalities have created a good ground for boosting all-out ties and cooperation between the two sides.
Bouteflika, for his part, said that Algeria is seriously pursuing a further promotion of bilateral ties and mutual cooperation with the Islamic Republic of Iran in both the Muslim world and international circles.
Also in October, Algerian Ambassador in Tehran Soufiane Mimouni announced his country’s eagerness to use Iran’s experiences in different scientific, technological and economic fields.
Grounds are prepared for active presence of Iranian industrialists in processing industries, canned food and marine products in Algeria, he said.
Mimouni also called on Iranian investors to contribute to his country’s developmental projects.

Higher Standards Planned For Aviation Fleet

Iran’s airlines will discharge all their Tupolev aircrafts from the aerial fleet by February 19, 2011 in a move to meet higher standards and ensure passengers safety, head of State Aviation Organization (SAO) Reza Nakhjavani said Saturday.
“Under no circumstances will we allow airplanes that lack the necessary standards endanger people’s lives,” added Nakhjavani, who was addressing a press conference, IRNA reported.
“All the airlines that use Tupolev airplanes have been requested to use a fleet which meets the public expectations and which also possesses the needed requirements in terms of economy, fuel consumption and safety,” the official said.
“Tupolev airplanes are void of the needed conditions for flight. For some 20 years these airplanes have been used in the aerial fleet of the country while passengers have always complained about them. In the process of replacing Tupolev fleet training human resources, transfer of technology and fuel consumption should be heeded,” he noted.
Nakhjavani recalled that his organization does not determine what airplanes domestic airlines should use.
“We agree to entry of any airplane to the aerial fleet of the country that has the needed standards and otherwise we reject those airplanes that do not fulfill the necessary requirements,” Nakhjavani added.
He gave word of an agreement with the Iraqi aviation organization on the basis of which-- except in charter flights--the number of Iranian passengers who go to Iraq increases to 1,200 per week from the current level of 800 per week.
Iranian Roads and Transportation Minister Hamid Behbahani said in August that Iran plans to add eight Boeing MD and six Airbus passenger planes to its air fleet.

Digital TV Production Line Inaugurated

Minister of Industries and Mine Ali-Akbar Mehrabian inaugurated Iran’s first digital TV production line in Savojbolagh, Alborz province.
Iranian brand LCD and LED TVs in various sizes (32-55 inch) can receive digital waves via an ordinary antenna and show the programs with the best quality, IRIB reported.
Domestic producers have planned to produce at least 10 million digital TV receivers systems (DVB-T).

Khansar Projects
Middle East’s largest industrial printing house was inaugurated in Khansar, Isfahan province on Friday during a ceremony attended by Mehrabian.
The printing house is constructed in an area of 40,000 sq m and worth 1.3 billion rials (some $1.2 million), IRNA reported.
It has the capacity to publish over 90 million volumes of books and magazines each year.
Abolfazl Jokar, the project investor, said close to 40 percent of the printing house’s machineries have been purchased.
During his one-day visit, Mehrabian also inaugurated the groundbreaking ceremony of Foolad-e Negin factory in a land stretching over 500,000 sq m.
Once the factory goes on stream, it will generate 500 and 3,000 direct and indirect jobs, respectively.
The proposed factory has the capacity to produce 550,000 tons of steel round bars per year. It is to be completed within 18 months at cost of 1.1 trillion rials.
Pointing to dynamic industries of Khansar and Golpayegan cities, Mehrabian expressed the hope that the industrial activities would thrive more in the mentioned cities.

TSE Index Grows 45% in 8 Months

Bourse index has witnessed a 45-percent growth and transactions have doubled during March 21-November 21, announced managing director of Tehran Stock Exchange (TSE).
Hassan Qalibaf-Asl explained that the volume of transactions has increased more than 160 trillion rials ($15.5 billion), Persian daily Iran wrote.
He pointed out that the highest growth in transactions pertains to odd lots (fewer than 100 shares).
Qalibaf-Asl recalled that the capital market value stood at 650 trillion rials ($62.07 billion) at the beginning of the current year (March 21). The figure rose to 850 trillion rials ($82.1 billion) during March 21- November 21, he added.
He said once the subsidies reform plan is implemented, the bourse will become more transparent.
TSE has asked the companies to make their energy consumption rate transparent, he pointed out.
Qalibaf-Asl continued that refineries and shipping companies are currently under admission procedure. The companies which complete admission procedure will be offered in the bourse hall.
Meanwhile, Mohammad-Javad Mohaqqeq, a member of Economic Ministry’s Research Center, said the liquidity in the production sector should increase and investments should be on the production sector of the country to help reduce the prices.
If people’s scattered assets are invested in capital market and banks, both investors and economies will make profit, he said, Fars News Agency wrote.
The people should not invest in coin market during the implementation of subsidy reform plan, otherwise the assets will become stagnant, Mohaqqeq underlined.

Gas Production

Iran will soon start gas production from ten new wells in the shared gas fields with Qatar in the giant South Pars site.