Claims to Zero Iran’s Oil Sales ‘Political Bluff’
TEHRAN (Dispatches) -- Statements by the United States that it would reduce Iran’s oil exports to zero are a "political bluff”, the head of state-run National Iranian Oil Company (NIOC) told Tasnim news agency on Wednesday.
U.S. officials have said they aim to cut Iran’s oil exports to zero, with new sanctions scheduled to kick in on Nov. 4.
NIOC head Ali Kardor said U.S. President Donald Trump had been trying to reduce Iran’s oil exports for months.
"The president of America has done whatever he can and he knows very well that getting Iran’s oil exports to zero was a political bluff,” Kardor said.
The U.S. administration has been pushing its allies to cut Iranian oil imports and encouraging Saudi Arabia, other OPEC states and Russia to pump more oil to meet any shortfall.
Kardor said Iran did not have any difficulties receiving payments for oil exports and said the Islamic Republic could accept payments in euros instead of dollars if necessary.
"There is no problem on this issue,” Kardor said, Iran’s ISNA news agency reported. "With European support there will not be a problem.”
European powers claim to have been trying to salvage a nuclear accord with Iran after the United States withdrew in May.
The European Union said last month it was considering setting up a Special Purpose Vehicle (SPV) to facilitate trade with Iran and said it could be in place before November.
European diplomats have said the SPV would create a barter system, similar to one used by the Soviet Union during the Cold War, to exchange Iranian oil for European goods without money changing hands.
Kardor said Iran was scheduled to sign a new oil contract with a foreign company within two weeks, ISNA reported. He did not provide any additional information.
NIOC has lined up 34 working packages valued at $6 billion to enhance recovery and sustain production from its fields.
The projects are being entrusted to domestic companies, with the contracts for Sivand and Esfand fields in the Siri operational area already finalized, Kardor said separately on Tuesday.
The two fields are operated by the Iranian Offshore Oil Company (IOOC), a subsidiary of NIOC. Kardor said Iran will issue bonds in the Iranian month of Aban beginning on Oct. 23 to fund the projects.
Negotiations are also underway for three other oil fields within the framework of Iran’s new contract model. Additionally, the National Iranian South Oil Company (NISOC) and Pergas consortium will soon finalize their contract for development of Karanj oil field in Ahvaz, he added.
Measures have also been taken to insulate the oil sector against the new sanctions. Those include a plan by NIOC to sell its first crude oil cargo on the Iranian stock market or bourse on October 28.
The arrangement will allow private traders to buy Iranian crude to resell into the international market, rather than NIOC selling directly to refiners.
Kardor said selling oil on the energy stock market is profitable, but it will not be a venue for speculation.
On Oct. 28, NIOC will offer 1 million barrels for sale in 35,000 barrel batches at the base price of $79.15 per barrel, subject to modifications based on the fluctuations of the market, he said.
He made the announcement on the sidelines of the 4th Iranian Petroleum and Energy Club Congress and Exhibition in Tehran, attended by foreign and domestic companies.
Azamat Ismagilov, deputy general director for business development and member of management board at Russia’s state-owned oil group Zarubezhneft, said Iran has taken useful steps to increase oil production.
Minister of Petroleum Bijan Zangeneh told the event that Iran will try to find ways to finance technology and know-how through domestic markets to keep the oil flowing.
"The sanctions are certainly harmful but we should try to minimize the harm," he said.
The minister also said three phases of the supergiant South Pars gas field will come online by the end of the current Iranian year on March 20, 2019, each with a capacity to produce 1 billion cubic feet per day of sour gas.
U.S. officials have said they aim to cut Iran’s oil exports to zero, with new sanctions scheduled to kick in on Nov. 4.
NIOC head Ali Kardor said U.S. President Donald Trump had been trying to reduce Iran’s oil exports for months.
"The president of America has done whatever he can and he knows very well that getting Iran’s oil exports to zero was a political bluff,” Kardor said.
The U.S. administration has been pushing its allies to cut Iranian oil imports and encouraging Saudi Arabia, other OPEC states and Russia to pump more oil to meet any shortfall.
Kardor said Iran did not have any difficulties receiving payments for oil exports and said the Islamic Republic could accept payments in euros instead of dollars if necessary.
"There is no problem on this issue,” Kardor said, Iran’s ISNA news agency reported. "With European support there will not be a problem.”
European powers claim to have been trying to salvage a nuclear accord with Iran after the United States withdrew in May.
The European Union said last month it was considering setting up a Special Purpose Vehicle (SPV) to facilitate trade with Iran and said it could be in place before November.
European diplomats have said the SPV would create a barter system, similar to one used by the Soviet Union during the Cold War, to exchange Iranian oil for European goods without money changing hands.
Kardor said Iran was scheduled to sign a new oil contract with a foreign company within two weeks, ISNA reported. He did not provide any additional information.
NIOC has lined up 34 working packages valued at $6 billion to enhance recovery and sustain production from its fields.
The projects are being entrusted to domestic companies, with the contracts for Sivand and Esfand fields in the Siri operational area already finalized, Kardor said separately on Tuesday.
The two fields are operated by the Iranian Offshore Oil Company (IOOC), a subsidiary of NIOC. Kardor said Iran will issue bonds in the Iranian month of Aban beginning on Oct. 23 to fund the projects.
Negotiations are also underway for three other oil fields within the framework of Iran’s new contract model. Additionally, the National Iranian South Oil Company (NISOC) and Pergas consortium will soon finalize their contract for development of Karanj oil field in Ahvaz, he added.
Measures have also been taken to insulate the oil sector against the new sanctions. Those include a plan by NIOC to sell its first crude oil cargo on the Iranian stock market or bourse on October 28.
The arrangement will allow private traders to buy Iranian crude to resell into the international market, rather than NIOC selling directly to refiners.
Kardor said selling oil on the energy stock market is profitable, but it will not be a venue for speculation.
On Oct. 28, NIOC will offer 1 million barrels for sale in 35,000 barrel batches at the base price of $79.15 per barrel, subject to modifications based on the fluctuations of the market, he said.
He made the announcement on the sidelines of the 4th Iranian Petroleum and Energy Club Congress and Exhibition in Tehran, attended by foreign and domestic companies.
Azamat Ismagilov, deputy general director for business development and member of management board at Russia’s state-owned oil group Zarubezhneft, said Iran has taken useful steps to increase oil production.
Minister of Petroleum Bijan Zangeneh told the event that Iran will try to find ways to finance technology and know-how through domestic markets to keep the oil flowing.
"The sanctions are certainly harmful but we should try to minimize the harm," he said.
The minister also said three phases of the supergiant South Pars gas field will come online by the end of the current Iranian year on March 20, 2019, each with a capacity to produce 1 billion cubic feet per day of sour gas.