Zanganeh: Iran supports oil market stability

TEHRAN, Aug 26 (Shana) – Minister of Petroleum Bijan Zanganeh says Iran supports any initiative for management and stability of the world crude markets.

Zanganeh made the remark in a press conference at Pars Energy Special Economic Zone and prior to his presence in the OPEC meeting on the sidelines of the International Energy Forum in Algeria.
Zanganeh said Iran has had no role in destabilization of the oil market, so after sanctions it wants to revive its share in the world crude markets.

While confirming that he will take part in the IEF session from September 28-29, Zanganeh said when market turned unstable, Iran’s oil production was hardly 2,700,000 bpd and oil exports was less than one million bpd.

He noted, “Our expectation is that those turning market unstable, should assume highest and main responsibility to restore stability in the market.”

He added that Iran will continue cooperation with the OPEC to improve prices and crude market conditions. “However, we expect our right to revive our lost share in the oil market will be taken into consideration.”

Zanganeh announced, “Revival of Iran’s lost share in the oil market is the national demand of Iranian nation.”

On final status of new model of oil contracts, Zanganeh said the commission in charge of checking conforming of Majlis approvals has demanded amendments in the contract model and the corrections will be made and after approval in the cabinet, the model will be sent to the parliament.

He said the new model of oil contracts envisages general conditions of the contracts and are in fact a type of new version of buy-back contracts.

He recalled his Sunday meeting with the Majlis members and said he had convinced the MPs on the issue and the proponents categorically had voiced their agreement, so favorable support was raised for the new scheme of contracts.
The minister said the new model of oil contracts contains general conditions and it should be approved by the cabinet and once the framework is finalized, sometime will be spent on preparing the draft and once the contracts are signed, a copy will be sent to Majlis in a classified form.

Zanganeh said development of the joint fields and increasing the coefficient of oil recovery from old fields are among priorities in conclusion of the new oil contracts.