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Veep: Oil Production, Exports Key to National Security, Power

(Monday, October 17, 2016) 18:40

TEHRAN, Oct 17 (Shana) – First Vice-President Eshaq Jahangiri says Iran should develop its oil production and exports in the best possible manner in order to maintain its national security and might.

Jahangiri made the remark in an address to the IEPC 2016 in Tehran on Monday.

He said, "without oil revenues and development of the oil sector, development of Iran will not be possible."

The official said in Iran no issue is more important than oil and gas for development of the country, so investment in the sector is necessary. "Using new oil contacts is a way for investment in the oil sector."

The Veep said the new oil contract model, prepared by the Ministry of Petroleum was well considered by many experts and tens of sessions and dialogues were held with many people and institutions on the issue.

He added that no time killing is allowed. "In the past years, our neighbors speedily developed oil fields and Iraq is now producing more than 4,300,000 barrels per day."

Focusing on contracts, he said contact is a two-way road and it would not be wise to expect one side writing down all its wishes and expectations on paper while the other party would accept all of them. "Of course, Iran enjoys exceptional condition in the region and security, young and educated workforce and political stability serve as enough attractions for foreign investors."

The veep said, "For Iran and regional states, oil is not a mere economic issues. Many political events in the region are linked with energy and oil. I suppose the 9/11 and the post-9/11 events in the Persian Gulf were mostly due to oil. Unfortunately, certain regional states, that reserve a grave share in oil production, have had main role in regional problems, while the countries could use oil revenues for development. However, they used it as a lever for instability and  insecurity of the region."

The First Vice-President said oil industry development is very important for Iran. "The development will  upgrade Iran's status in the region, while ensuring economic development."

"Without oil revenues Iran's development will not be possible; so, nothing is more important than oil and gas for Iran."

He then said Ministry of Petroleum is busy signing contracts with Iranian and foreign companies. 

"I advise foreign companies not to look after lobbies because transparent regulations have been devised by the Ministry of Petroleum and there is no need to spend more. A transparent body should be treated proportionately."

He said companies forerunning technology transfer are in priority for cooperation and contract conclusion.

As third recommendation, Jahangiri advised foreign companies to benefit from high engineering and equipment manufacturing potential of Iran.