Torkan terms oil industry the engine of development, national economy

Tehran, Nov 16, IRNA – President’s advisor Akbar Torkan pointed to the formulation of executive package for oil and gas industry in the 5th Development Plan and said given the severe dependence of the economy on oil revenues the oil industry is the engine of development and national economy. Torkan who is also Secretary of the Coordination Council of Free and Special Economic Zones hailed the 'unique and vital' role the oil industry plays in supplying the required energy needs as well as in maintaining hard currency revenues, providing feedstock for petrochemical industry and strengthening national power of the country. He said the oil industry due to its close relationship with other industries, output rings and value added in the country has a massive capability in absorbing domestic and foreign investment and in creating job opportunities. In Torkan's opinion the oil industry has an international identity and high potentials in increasing foreign links and cooperation and as a result has an important position in maintaining relations and political and economic security of the country. Torkan further remarked that on the basis of new regulations ownership of oil and gas resources will be handled by the Oil Ministry and therefore production of crude oil and natural gas and related investments (in upstream oil industry) are considered government activities. He said currently one of the main issues of the oil industry is formulation of qualitative targets of the 5th Development Plan in the field of oil, gas and petrochemicals in line with targets of the Vision Plan. “Therefore, the target of the plan is to formulate executive packages for the upstream sector of the oil and gas industry including production capacity of crude oil and natural gas in the course of the 5th Plan.”/end