Zanganeh: Change In Oil Contracts Aims To Raise Oil Output Level

Tehran, Sept 10, IRNA – Minister of Oil Bijan Namdar Zanganeh said on Monday that oil contracts have been changed to raise coefficient of oil fields recovery. Speaking to reporters, Zanganeh said presently, gas production is low, so there are plans to import liquid fuel as a substitute. He said to remove the shortage, production capacity cannot be raised by increasing imports and the only option is to liquid fuel. Asked how much he was optimistic about Iran's success in regaining OPEC Secretary General post, Zangeneh said for the time being, the post has been kept away from Iran; however, a committee has been set up in the Organization to make decision on the issue. “We are not however optimistic the mechanism would be helpful and it is less likely for Iran to get the post of OPEC secretary general.” “The Secretary General post is a minor goal for US; in fact, the secretary general does not have much influence on the OPEC; this, however, does not mean letting them deny our rights.” The Minister said Iran is fully ready to cooperate with the OPEC members and the Gas Exporting Countries Forum. “Our status in the OPEC has been weakened and the only way to improve out position is to to raising our real output level.” Zanganeh said current oil price is suitable. “From the standpoint of policy makers, oil prices have increased to a suitable level because in the short term it would solve country’s problems; however, we have lowered our production when global oil prices are on the rise and only other producers benefit from price hikes.” Elsewhere in the interview, he said his ministry would support the private sector as it is busy with drilling and other services abroad and has high capacity to get involved in other oil-related activities. Asked on his visit to Turkmenistan, Zanganeh said he had not visited Turkmenistan to conclude contracts. He said during the visit, discussions were held on import of gas from Turkmenistan as a contract had been in place between the two sides to that effect since many years ago. He added that based on the contract, Iran would export goods and services to Turkmenistan in exchange for the gas imports./end