TEHRAN An economic expert yesterday said that the recently concluded oil agreements reached between Iran and several oil giants are not in the interest of Iran because they are not fair. Allameh Tabatabai University Prof. Dr. Farshad Momeni in an interview with the TEHRAN TIMES commented on oil exploration agreement signed with some foreign companies. Momeni said, The terms and conditions of the agreement are not fair and not in Iran's interest.

He was referring to a $300 million agreement signed on Sunday between Iran and French oil firm Elf Aquitaine and Canada's Bow Valley Energy Ltd. Momeni holds the same view on the $2 billion agreement reached last May between Iran and the French Total Sa, Russia's Gazprome and Malaysia's Petronas. There is no logical justification for signing these agreements, he said.

What has happened in the oil industry during the last two years cannot be explained in a logical manner, Momeni said and pointed out that, on the one hand, oil prices were going down unprecedentedly and, on the other hand, investment in the same industry was rising during the same period. The terms and conditions of the agreements indicate that these accords are not fair, he said.

Momeni noted that the minimum oil income should be included in the national budget to avoid any mishap. We have all the necessary facilities and should do everything to promote export of non-oil goods, he said. Another university Professor Dr. Kazem Najafi-Elmi said, We cannot depend on oil income, and we must increase the export of non-oil products. Unfortunately, we think of promoting non-oil exports only when oil prices go down at the international market, Najafi-Elmi said.

We must have a comprehensive plan to export non-oil goods and reduce dependency on income through crude exports, Najafi-Elmi noted. Mohammad Javad Iravani, a university professor, hailed the agreements signed between Iran and some foreign countries and said, These accords prove that facts and realities are more effective than d'Amato sanctions. The so-called d'Amato sanctions were imposed on Iran by the U.S. in 1996. Energy plays a crucial role in the overall development, and this is the reason why rivalry emerges on the scene, he said, and pointed out that rivalry should be healthy and fair.

Even Canada, which is one of closest allies of the United States, has signed an agreement with Iran despite sanctions imposed by Washington on Tehran, Iravani said. Two oil giants, Iran and Saudi Arabia, have coordinated their policies on the export of the black gold, which has resulted in a healthy atmosphere in the international oil market, he noted. Through a comprehensive plan, we may succeed in earning an acceptable income through export of non-oil products over a period of 10 years, Iravani pointed out.

Agreeing with Najafi-Elmi, Iravani said, Our efforts at promoting non-oil exports subside when oil export goes up. Meanwhile, following the recent OPEC agreement to reduce oil production ceiling to boost prices, the National Iranian Oil Company (NIOC) will also cut down on its oil output, announced the NIOC's Public Relations Department here Tuesday. The announcement also said that the reduction in exports in April and May will be at at least 10 and 12 percent, respectively, of the February's daily export volume.

The NIOC has expressed hope that with coordination between the company and its clients, prices will undergo further stability in the future.