IRI Petroleum Minister Rostam Qasemi said here Friday implementation of law on goal-orientation of subsidies enabled our country to turn from an importer of benzene into an exporter of the petroleum product.
Qasemi who was speaking as the pre-sermons speaker of this week's Friday prayers of the capital city said that the goal-orientation of subsidies law is an important step and law in the economic field for Iran, adding, "After the implementation of that law our country has become a benzene exporter ever since last (Iranian) year (ended on March 20th, 2012), to world markets."
He said, "That is while prior to implementing that law Iran used to import worth four billion US dollars of benzene annually."
Reiterating that Iran has the second largest gas resorts in the world and including our country's oil resorts, Iran ranks first in owning the world's hydrocarbon reports, he added, "It was the Europeans that suffered losses from their sanctions imposed against the Iranian oil, which led to increasing the international oil prices."
The petroleum minister focusing on the problems that west has created in the way of development of the Iranian oil industry, coupled with the EU oil sanctions, argued, "They thus imposed double sanctions against the Iranian oil industry, but by grace of God and the ceaseless work and endeavors of the offspring of this nation, the Iranian oil industry is today faced with no deficiency regarding facilities and provision of technical parts for this industry inside Iran, and the entire facilities needed for the required development of our oil industry is today manufactured in our country."
He said that the development and rapid continuation of projects in the various phases of South Pars Oil Field is best proof for this claim, announcing, "The entire development project implemented at Phase 19 of the South Pars Oil Fled has been completed by the Iranian technicians and experts."
The petroleum minister said, "A European official in a visit of Iran asked me weather we are worried about the imposed sanctions, and fear lest they would... I told him that nothing in our country is inferior compared to your countries. In addition to that, we have experts, engineers and technicians here the like of whom are not found in the west, which is why the sanctions imposed against our oil industry do not worry us at all."
The petroleum minister said there was a day when the aliens were in charge of development of the Iranian oil industry and no Iranian was allowed to be a witness of their activities personally, adding, "Compare that situation with the development projects underway at our oil industry today, which are entirely implemented by Iranian experts, engineers and technicians."
Qasemi said, "Today, after over one hundred years of having the oil industry in our country, we intend to move towards exporting oil industry facilities and oil products, side by side with exporting raw oil."
The petroleum minister noted that currently 80,000 employees are working at the South Pars Oil Field, adding, "We do not have even a single foreign technician, or employee at our projects currently."
On EU sanctions on Iranian oil, Qasemi said that the increased oil prices after those sanctions benefitted Iran greatly, adding, "The European countries must realize the fact that there is no mechanism to control the international oil prices and as it has been observed since a few months ago, the sanctions against Iranian oil has led to increased oil products' prices in their countries. Therefore, the advanced countries must heed the point that without the Iranian oil not only they would face internal problems, but also they would suffer greater financial losses."
The oil minister referring to the implementation of the oil industry evolution program whose implementation started last year, as well as the preparation of the strategic oil industry program, said, "Thus we both know what great steps we are scheduled to take during the (Iranian) year 1391 in this industry, and realize the great importance of the oil industry keeping in mind the Supreme Leader's two visits of this industry during the course of the past year."
DEVELOPMENT PLANS IN SHARED OIL FIELDS
Focusing on exploitation and excavation at shared oil fields with neighboring countries, Rostam Qasemi said, "We have promised the Supreme Leader of the revolution that by the end of the year 91 (March 20th 2013) we would be producing 1.47 billion cubic meters of natural gas from shared gas fields."
Focusing on the phases of the South Pars field, he said, "Phase 19 of the South Pars Oil Field is under construction now and after its completion to country's natural gas production would increase drastically."
Qasemi reiterated that presently over 91% of the Iranian cities and 57% of the Iranian villages are taking advantage of natural gas, and by the end of the 5th Development Plan 80% of the villages would have gas pipelines."
On the status of the Iranian petrochemical industries, the petroleum minister reiterated that most of the general products in the country are manufactured using the products of the Iranian petrochemical industries adding, "The present petrochemical products production capacity of the country is 54 million tons, and after completion of 70 new units, by the end of the 5th pan, this capacity would increase to 100 million tons."
In related news, Moody's Investors Service says higher oil prices that could potentially result from US and European Union (EU) sanctions against imports of Iranian oil would be negative for global corporate sectors such as airlines, oil refineries, European car makers as well as retail.
In a report entitled 'Global Non-Financial Corporate: Airlines, Oil Refining, European Autos and Retail at Risk in $150bbl Oil Price Scenario' published on Tuesday, the credit ratings agency said that European automakers would face a greater risk from an oil shock resulting from a US and EU economic confrontation with Iran than their US or Asian counterparts, although profits and cash generation for US automakers would also come under great pressure.
The report added that airlines would suffer operating losses from sustained higher costs for jet fuel, and the fare increases that would hurt passenger demand worldwide.
Meanwhile, retailers, restaurants and other industries that depend on discretionary spending would suffer if fuel prices surged for consumers.
Rising transportation and distribution costs would weaken revenues for European retailers. The makers of consumer durables would also see pressure from reduced consumer demand and higher raw material prices.
The United States and the European Union recently imposed tough financial and oil sanctions on Iran in an attempt to pile up pressure on the country.
The US sanctions measure requires foreign financial institutions to make a choice between transactions with the Central Bank of Iran and Iran's oil and financial sectors or being banned from the US economy.
On January 23, the EU agreed to ban imports of oil as well as petroleum products from Iran and freeze the assets of the Central Bank of Iran across the EU.
Iran's Minister of Economic Affairs and Finance Shamseddin Hosseini said on May 20 that oil prices will soar to as high as $160 per barrel if the EU sanctions against the Islamic Republic take effect.
© IRNA 2012
