Ministry of Petroleum. But I know that negotiations have started with foreign companies since several months ago. In coming weeks we will definitely see signature of such contracts with other domestic companies and also with foreign companies.
Q: Despite the approval of the new model of oil contracts and Iran's invitation to foreign companies to bid for projects, some international oil companies have announced that they cannot decide about investment in Iran, because they are unaware of details of the contracts. Is there any plan for further dissemination of information in this regard?
A: The finalization of new contracts in Iran was unfortunately tainted with political issues. In other words, building consensus on this issue lasted long. Iran is a country where there is consultation and consensus building and a single person cannot be the decision-maker. I remember well that Mr. [former IAEA chief] Mohamed ElBaradei had noted in his memoirs that Iran is not like a regional Arab country where one person orders and others obey; in Iran, political fractions express themselves and offer their proposals in a democratic procedure. Now that obstacles have been removed and the new model of oil contracts has been approved in Iran it would be enough for the National Iranian Oil Company to post the details of these contracts on its website for companies willing to cooperate. This process started on October 17 and foreign companies will have one month to register with the NIOC.
Q: One of recent important events related to OPEC was the backdown by Saudi Arabia and its allies to exempt Iran from a planned oil production freeze. What do you think of this breakthrough?
A: The issue of freeze and related policies are steered by the minister of petroleum in person. The world of petroleum industry knows quite well Zangeneh and his colleagues as oil strategists. After taking office, the Iranian minister of petroleum said he was Iran's oil chief and he would shun the issue of oil freeze before the country regains its pre-sanctions export share. He made it clear to his counterparts and we saw that his strategy was successful. In my view, the Algeria meeting was an important political understanding. The step which was taken in Algeria was necessary for striking a balance into international oil market. The practical step must be taken in November and that would be to revive the OPEC quota system. The question here is to know whether or not we should see Saudi Arabia's retreat as a political signal beyond oil. Everyone answers this question based on his view of the market and international relations.
Q: Would you please tell us about your recent negotiations with foreign parties, oil sales to Europe and also condensate sales?
A: Policymaking and the first phase of negotiations with a foreign company for any kind of activity including buying oil and petroleum products and investment in the petroleum industry are handled by the Office of Deputy Minister of Petroleum for International Affairs and Commerce. Based on talks we have so far held with foreign companies I can assure you that the Iranian petroleum industry will see its conditions improve over the coming one to two years. On one side, the Russians and the Asians and one the other side the Europeans eye their won projects in Iran's petroleum industry. Meantime, Iran has prioritized some projects like jointly owned fields, enhanced recovery, mature fields and fuel conservation. But what is interesting for us is the independence of Canadian companies. They have time and again voiced their readiness for negotiations.
We are currently exporting 600,000 b/d of oil to Europe and we recently sold 1 million barrels of gas condensate produced at South Pars [gas field] to BP. That was a big figure that could increase to 2 million barrels a month. Iran has currently around 60 million barrels of condensate stored on ships that would be reduced to zero by the end of the year. Fortunately, three condensate vessels are emptied every month. We export 600,000 b/d of condensate and consume 150,000 b/d in the country. Our production is around 500,000 b/d ; therefore, the volume of gas condensate stored on ships is declining. Many European companies are in talks to purchase gas condensate from Iran. Iran's oil exports – gas condensate included – have crossed 28 mb/d.
Q: What is the share of petrochemical sector and incomplete petrochemical projects in foreign investments?
A: Our priority is to develop jointly owned fields, but petrochemical industry, owing to its high profitability, automatically attracts investors into Iran and there is no need for more incentives like those offered in the upstream oil sector.
Q: What about Iran's collection of debts owed by foreign oil companies?
A: Iran has collected most of its oil debts, and only refineries in Greece have yet to settle their debts which are being paid back based on a memorandum of understanding.
Q: Recently a Slovenian oil and gas company established an office in Iran. Are you aware of the plans of this company?
A: Yes. Of course in East Europe, Hungary is ahead of others for activity in Iran's petroleum industry. They are willing to buy oil and sell equipment. Following Hungary, Slovenia is seeking to enhance its ties with Iran.