29 Mar 2024
Tuesday 29 October 2013 - 11:03
Story Code : 60643

Minister: State firms unable to afford cash handouts

TEHRAN (FNA)- Iranian Oil Minister Bijan Namdar Zanganeh said state-run gas and refining firms cannot account for monthly cash handouts.


We have to sell crude oil in order to be able to deposit the necessary resources into Treasury, Zanganeh made the remarks on the sidelines of an international conference entitled National Wealth; Allocating Assets and Risk Management on Sunday.

He said that National Iranian Gas Company (NIGC) and National Iranian Oil Refining and Distribution Company (NIORDC) are required by the budget bill to pay 270 trillion rials for cash handouts paid in return for the removal of subsidies.

But we cannot afford it, he added.

Zanganeh said the NIGC and NIORDC revenues were only spent on cash handouts and that the companies could not finance their own projects.

The minister also said that Iranians will face no fuel shortage in the winter.

He, however, said the countrys severe gas shortage was to blame on delays in the development of the gigantic offshore South Pars gas field.

Zanganeh said 100 billion dollars were required to be invested in the oil and gas industries in the past years, calling for more budget allocation to oil and gas projects.

The minister predicted that eight billion dollars will be deposited into National Development Fund (NDF) from oil and gas exports this year. He expressed hope that more money could be deposited into the fund to finance oil and gas projects.

The government is not allowed to dip into the NDF to finance oil projects, but private investors can benefit from NDF for investment in shared [oil and gas field] projects, he said, adding that more than 14 billion dollars are to be earmarked for the development of joint hydrocarbon fields.

Zanganeh said talks have been held with foreign companies for investment in Irans oil and gas projects. But no agreement has yet been reached and we hope that the negotiations held to that effect will lead to the signature of deals, he said.

The minister also dismissed rumors of gasoline price hikes to 10,000 rials.

Zanganeh added that Iran continues to import gasoline. In the past years, gasoline imports have been done. It has been two, three or four million liters a day, he said.

Zanganeh also said that crude oil could be sold on the Energy Stock Market.

By Fars News Agency

 

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