Q: Over the past years, Iranian companies and manufacturers have crossed boundaries of science and technology to produce and export most basic petroleum industry commodities. Has Iran Chamber of Commerce had any activity in this regard?
A: As I mentioned before Iran Chamber of Commerce, which represents the private sector, is tasked with accelerating domestic companies’ move towards reaching their objectives. For instance, Society of Iranian Petroleum Industry Equipment Manufacturers (SIPIEM) is a member of Iran Chamber of Commerce. Such associations have in the past years made efforts to push Iranian companies into international arena.
Q: A vital and important project for Iran’s petroleum industry now is to manufacture 10 groups of equipment. Have you been involved in this?
A: Yes, many companies affiliated with Iran Chamber of Commerce are trying to manufacture the required equipment. In recent years, our knowledge-based companies have been seriously seeking to indigenize oil industry equipment and modern technologies. During their visits to the booths of these companies at the 21st Oil Show, oil industry managers were surprised at this high level of progress. Since Iran’s private sector has a stronger self-confidence than the public sector, it is not necessary for the public sector to be custodian of this sector. The dutiful structure of Iran Chamber of Commerce has fulfilled its obligations in recent years under the 11th administration.
Q: One of the concerns of Iran’s petroleum industry is to accelerate the development of shared oil and gas fields. A major solution to allying this concern will be to attract domestic and foreign investment into this industry and that is why a new model of oil contractual framework has been developed over the past two years. How has Iran Chamber of Commerce contributed to this issue?
A: Throughout formulation of these new contracts, Iran Chamber of Commerce experts were regularly attending the meetings of working groups. Given the role of this model of oil contracts in attracting foreign investment our experts have always supported these contracts.
Iran’s Ministry of Petroleum requires foreign companies to partner Iranian companies for involvement in the petroleum industry projects. This is in line with the policy of supporting Iranian companies and manufacturers. However, this chance should not merely benefit state-run and quasi state-run companies.
Q: As a businessman in Iran’s private sector, which infrastructure do you think is needed for the private sector’s more prominent role in domestic and foreign investment?
A: Some general grounds like ordinary international banking transactions; financing, reliable insurance guarantees like Italy’s SACE that opened a $3.5 billion credit line must be prepared. Following negotiations and an agreement with Germany’s Hermes insurance, we will soon witness the opening of a credit line by this insurance agency. In the transport sector, active companies must start cooperation with European companies. Iranian companies have barely any audited account or internationally recognized certificate. In other words, they are not known to international organizations and companies. Iranian companies must keep up with international regulations which are customary in the world. That has not been practiced in Iran for a decade and it has to be updated. Fortunately over the past year international consulting and service firms have moved to open representative offices in Iran. In our negotiations with foreign companies, we have always told them we will provide more support to them should they choose an Iranian partner for operating projects because Iranian companies are important for us. Iran Chamber of Commerce’s rating office rates private Iranian companies for cooperation with foreign companies. This office is planned to become a national rating center this year in order to continue its job with a better and more serious framework.
Q: How could the level of interaction between petroleum industry related associations and Iran Chamber of Commerce be enhanced?
A: Currently, of 17 industrial associations in the world, 12 are affiliated with the Chamber. We welcome other associations’ application to join the Chamber.
Some issues are domestic; for example, the government or the petroleum ministry’s further trust in the private sector. In the past years, the nationality of Iranian companies has cost them dearly because these companies have been driven out of international markets due to sanctions. Therefore, now that the JCPOA has been implemented these companies must be privileged.
Q: The quality of commodities and equipment is of high significance for Iran’s Ministry of Petroleum. This ministry maintains that domestic and foreign companies must bid for tenders under equal conditions. What do you think?
A: We believe that low-quality equipment could turn out to be dangerous for projects. The Ministry of Petroleum can use foreign equipment, but if there is no high risk it must use Iranian commodities and products.
Q: After the JCPOA implementation, a post-sanctions committee was set up at Iran Chamber of Commerce. Would you please brief us about its activities?
A: This committee was established in June last year. There have been efforts under way for Iranian private companies to play a more prominent role in commerce, financial and insurance affairs. Another activity of this committee has been to process the achievements of JCPOA and monitoring them.