Iran’s Minister of Petroleum Bijan Namdar Zanganeh (file photo)

Zangeneh: All ready for agreement

SHANA- Minister of Petroleum Bijan Zangeneh said on Wednesday that it seems everybody at OPEC is ready for agreement.

“It seems all are ready for agreement,” Zangeneh told reporters prior to the opening of the OPEC in-camera session on Wednesday, November 30.

Referring to the phone call of President Hassan Rouhani and Russian President Vladimir Putin, Zangeneh said decision on Russian oil production rests with Russia’s highest authority, let’s say Putin.

He said, “After Rouhani-Putin talks, Russian oil officials, who had met our friends, i.e. Algeria and Venezuela, changed their opinion and said they will cut their production in cooperation with OPEC.”

The Iranian top oil official said OPEC members also agreed on using secondary sources. “To monitor conditions, we should relay on the secondary sources.”

To a question on Iran’s letter to OPEC regarding the need for Saudi production cut, Zangeneh said, “I have not written anything; however, these days there have been many correspondences among the OPEC members.”

The minister said that OPEC members had not had any discussion on holding a meeting with the non-OPEC producers. “It does not seem there will be any need for it. The only issue of importance for us is that non-OPEC members will agree to decrease their output with or without any session.”

To another question on favorable oil price from Iran’s point of view, Zangeneh said, “Oil price is decided by the market not by Iran or OPEC. However, the price above 50 dollars will be suitable.”

On speculations about the six-month period for implementation of the OPEC agreement for output cut, he said, “This can be the first phase for any agreement. We will start with a figure and then manage it in the future.”

He announced that crude exports is 2.44 million barrels per day and will reach 2.8 million taking gas condensates into consideration.

As for binding nature of the HOA, he said for the time being Iran has signed three HOAs and several other documents will be signed in the next month. “I hope that by end of this year,  we will sign several contracts based on the already reached principled agreements.”

Zangeneh said the phase 11 of South Pars, South Yaran, Maroon of Bangestan, Koupal of Bangestan and Asmari are the fields on which talks had been held. “We hope to sign a deal with a company in connection with the oil layer of South Pars and Esfandiar and Farzad B fields.”

He added that despite certain financial challenges, Iran has no problem with the Indian companies for development of the Farzad B field. “Everything depends on the Indian company.”

According to the minister, the members will most probably agree on one million to 1.2 million cut of daily production of the OPEC.

Also referring to Iran’s efforts for increase in export of oil after sanctions, Zangeneh said, “We do not have any problem   with clients and the problem is that we do not have more oil for sale. We do not have any limited in terms of customer.”

Asked about source of Iran’s 300,000 barrels oil supply in the past two months, he said, “The 300,000 barrels increase in the daily output of Iran in the past two months were mainly made possible From Azadegan, Yadavaran, Yaran and several other operation fields east of Karoon, part of the Western and part of the eastern Karoon.”

He said several contracts are getting signed with Russian Lukoil, Tatneft, Rosneft, Zarubezhneft and Gazprom companies, “We have very good relations with the Russian Companies.”