Foreign firms keen on investment in Iran: Oil minister

April 24, 2006 - 0:0
DOHA (Agencies) -- Iranian Oil Minister Kazem Vaziri Hamaneh said here Sunday that foreign companies are enthusiastically keen on investment in Iran's oil projects.

Vaziri Hamaneh made the statement while talking to reporters on the sidelines of opening ceremony of the 10th International Energy Forum.

"Currently, foreign firms are very keen on investment in Iranian energy projects and we do not have any particular problem in this regard.

"We have extensive grounds for investment in Iran and at the same time foreign companies are interested in involvement in development projects of the country," he said. "Foreign companies welcomed Iranian new tenders on development projects showing they are keen on investment in Iran." Asked about oil prices, Vaziri Hamaneh said, "Fluctuation of oil prices is to the detriment of both producers and consumers." In response to a question on continuation of Iran's cooperation with Japan on development of Azadegan oilfield, he said, "Japan is interested in investment in Iran. A Japanese delegation will visit Iran to continue talks with the Iranian officials in the near future."

He hoped the Japanese side would start executive works at Azadegan soon. ============= Shell

Shell's Chief Executive Jeroen van der Veer, also at the Doha forum, said Iran remains a prime investment target. "I think one has to realize that Iran has huge oil and gas reserves," he said. "This is all about energy for the future of the world that can be developed, contracts which last for decades and that's a completely different time horizon."

Despite the slow pace of Iranian decision-making and the absence of U.S. technology and firms due to Washington's unilateral sanctions, Iran has managed to boost production capacity to 4.2 million bpd.

Multinationals are hoping for access to Iran's sought-after Yadavaran and Azadegan oilfields, but executives want state-run National Iranian oil Co to sweeten commercial terms.

The so-called buy-back investment model, where foreign firms are repaid with proceeds from oil output, has drawn criticism. Western oil executives say risks far outweigh rewards, while some Iranian politicians remain distrustful of foreign capital.

Tehran has said it was reviewing its buy back contracts to make investment in its fields more alluring.

"We have received all the views and we're doing it and I think we're very close to a conclusion," Vaziri said without elaborating.

China's Sinopec hopes to develop the huge southwestern crude field of Yadavaran. Negotiations have been bogged down, Tehran insists for commercial reasons rather than the dispute over its atomic ambitions.

Japan's INPEX signed a deal for Azadegan in February 2004, but work has been held up rising project costs, particularly for steel.

Iran and INPEX have also had to haggle hard over whether the field has been safely cleared of mines, left from the 1980-88 war with Iraq. =========== 10th Intl. Energy Forum

The 10th International Energy Forum kicked off in Doha, Qatar, Sunday. Oil ministers from 65 countries including members of the Organization of Petroleum Exporting Countries (OPEC) and the United States, as the world main oil consumer, are attending the three-day forum.

Iranian Oil Minister Kazem Vaziri Hamaneh, heading a delegation, is also among participants of the forum.

Energy producing and consuming countries decided to make joint efforts to establish more stable ties following crises in oil prices in 1970s, a fall in oil prices in 1986 and an increasing dependence on economy between the two groups.

The first round of talks between energy consumers and producers was held in Paris in 1991 upon an initiative of France and the International Energy Agency (IEA). Oil ministers from 25 countries and nine international organizations including OPEC and the IEA attended the talks.

The participating ministers in Paris meeting agreed to continue talks with respect to leading role of energy and oil in economy and in international trade.

The next meetings were held in Norway, Spain, Venezuela, India, South Africa, Saudi Arabia and Japan every two years.

The 9th International Energy Forum, held in Amsterdam, the Netherlands, in 2004, chose Qatar as the host country of the next forum.

Providing fuel for the future, confrontation with challenges and access to sustainable energy are among main topics of the 10th International Energy Forum.

The IEA Secretariat was officially opened in Riyadh, Saudi Arabia, on November 19, 2005. ======== Iran calls for stable oil price

Vaziri Hamaneh called for stable oil prices at international market.

Vaziri Hamaneh made the remark while talking to reporters before opening ceremony of the 10th International Energy Forum started.

Asked about President Mahmud Ahmadinejad's remarks on oil price, he said, "Iran is not happy with fluctuation in oil prices and is interested in stable prices".

Tehran believes that the cost of oil production should not be increased and that consumers and producers should enjoy a calm atmosphere, he added. In response to a question on whether the Organization of Petroleum Exporting Countries (OPEC) would increase its production, the minister said, "OPEC is doing its utmost to produce oil. There is no oil shortage in the market. I do not believe that any new decision would be made during the meeting."

OPEC members are scheduled to hold a consultative meeting on oil market in Doha on Monday.

The 10th International Energy Forum kicked off in Doha, Qatar, Sunday.

Oil ministers from 65 countries including the OPEC members and the United States, as the world main oil consumer, are attending the three-day forum.