Speaking on Iran’s production quota in post-sanctions era, Amir-Hossein Zamani said that relying on proper planning it is possible to keep the OPEC production ceiling intact and the production quotas observed.

‘I tell you definitely that there are clients for Iran’s increased production, but let me remain silent on how we intend to keep the OPEC production ceiling intact while increasing our oil production in accordance with our production quota,’ he added.

The Petroleum Ministry official said Iran still hopes the OPEC members will manage to return to their previous production quotas and each country will produce and present oil to the market in accordance with the share allocated to it by the OPEC.

After the recent sharp drop of the oil prices in international markets the raw oil price dropped down to 30 dollars per barrel and the OEPC oil basket, too, for the first time in past 11 years dropped to below 30 dollars.

The Saudis and their allies’ sabotage on OPEC against observation of countries’ approved production quotas is the most important cause for the sharp oil price decrease in recent months.

‘PCC has nine offices worldwide, including in India, Germany, Singapore, the UK and South Korea, while maintaining operations in Switzerland, Brazil and Indonesia under joint ventures,’ Mehdi Sharifi Niknafs said, according to Financial Tribune.
Niknafs added that PCC has established warehouses in all target markets to raise its bargaining power by storing petrochemical products.
‘For instance, PCC has three sales offices, 20 warehouses and two chemical storage units in China,’ he said.
PCC had earlier announced plans to reach out to member states of the CIS (Commonwealth of Independent States) and some EU members such as Spain. It reportedly makes up around 35%, or more than one-third of Iran’s total petrochemical exports.
The official added that Iran had a 30-35% stake in the European petrochemical market, but sanctions dramatically shrank the country’s share over the past few years.
‘We must reclaim Europe’s petrochemical market,’ Niknafs said.
To do so, Iran introduced investment opportunities in post-sanctions petrochemical sector to major international companies, as it aims to land $70 billion in foreign direct investment in petrochemical projects over 10 years.
Nominal production capacity currently stands at 60 million tons a year, but plans call for doubling the volume by 2021 and raising the output to an ambitious 180 million tons a year by 2025.

Singaporean Interest
A Singaporean shipping company, Quincannon Asia Pte Limited, is awaiting the lifting of sanctions against Iran to take a claim in Iran’s ‘lucrative’ petrochemical industry, according to the managing director of the company.
‘Sanctions-removal translates into a unique opportunity to develop Iran’s petrochemical sector,’ Mark Mirosevic-Sorgo was quoted as saying by Mehr News Agency.
The official added that the Persian Gulf country enjoys advantages, including its huge methane-rich gas reserves, which are not found in other regional countries’ petrochemical industries.
‘In addition to Asian firms, which have cooperated with the country before, European companies’ eagerness to enter Iran’s market for the first time is significant,’ Mirosevic-Sorgo said.
Stressing that Quincannon Asia is for the first time mulling over cooperation opportunities with Iran, he said the company is professionally active in gas and petrochemical shipping.
‘In light of Iran’s high potentials and the prospect of global gas and petrochemical markets, bilateral cooperation between the two countries is very promising,’ he said.

‘We can import natural gas from Caspian Sea [littoral states] to generate and export electric power,’ Mahmoud Khaqani, a member of the Iranian Association of Energy Economics, said.
Khaqani proposed that the plan be branded Caspian Energy Network, Financial Tribune reported.
‘Gas export via pipeline is not economically justified. This is while Iran exports natural gas via pipelines to Turkey, Armenia and Azerbaijan, and plans call for raising gas production capacity to 1 billion cubic meters per day in two years and to 1.2 bcm/d by 2020.
Describing his proposed energy network, he said it would serve as a platform for Caspian Sea littoral states to exchange technology and energy sources, transfer electricity, make joint investments and expand cooperation.
Khaqani also pointed to the high electricity demand of Persian Gulf Arab countries and called for burning gas as feedstock in southern power plants to produce and export electricity.
The call for tapping into the country’s energy potential comes, as little has been done over the years to draw crude oil or natural gas from the Caspian Sea’s rich hydrocarbon reserves. The sea holds an estimated 48 billion barrels of oil and more than 8 trillion cubic meters of natural gas in proven and probable reserves.
The four other littoral states, namely Russia, Azerbaijan, Kazakhstan and Turkmenistan, are in a race to claim a bigger stake from the Caspian reserves.
To make up for past negligence, Tehran introduced several oil and gas exploration projects to international companies last year. The development projects include three exploration blocks and Sardar-e-Jangal oil and gas field in the Caspian Sea.
Iran discovered oil in its Caspian Sea waters in 2012. The deposit was found at a depth of 2.5 kilometers and estimated at that time to contain some 10 billion barrels of crude, or roughly 7% of Iran’s known reserves.
Traditionally an oil-producing area, the Caspian area’s importance as a natural gas producer is fast growing. Offshore fields account for 41% of total Caspian crude oil and lease condensate (19.6 billion barrels), and 36% of natural gas (3 tcm).
Khaqani also called for fast-tracking energy and trade cooperation with Greece, despite Athens’ oil debts to Tehran.
‘Instead of patiently waiting for Greece to clear its [oil] debts, we can sign a deal to export energy in exchange for goods and services,’ he said.
Oil Minister Bijan Namdar Zanganeh held talks with Greek Foreign Minister Nikos Kotzias last month on settling the country’s $800 million in unpaid dues to Iran upon the lifting of sanctions.

Chitchian invited the Slovenian companies to cooperate in financing the water and electricity projects in the Islamic Republic of Iran.
The two sides signed memorandum of understanding (MoU) on expansion of cooperation in electricity and energy sectors, said the Iranian minister.
The presence of Slovenian economic delegation to Iran and opening of their trade office in Tehran will lead to bolstering of economic and commercial cooperation, Chitchian said.
The key to the success of Slovenian companies in the Islamic Republic of Iran is the joint investment in the Iranian companies, he said.
He said that the Islamic Republic of Iran has currently the capacity of 74,000 megawatt power generation to be raised by 50,000 megawatt in next ten years.
Iran is currently exporting over 10 billion of kilowatts electricity to Turkey, Afghanistan, Pakistan and Iraq, he said.
Iran welcomes the finance of Slovenian companies to implement projects inside the country, he said.
Trade between Iran and Slovenia stood at euro 22 million last year, but the figure should be increased three folds to euro 60 million, said the Slovenian minister.
Signing the MoU will be regarded as the first move to establish joint commission between the two countries which will be regarded as the first step to broaden commercial and economic cooperation.
Slovenia is determined to increase cooperation in construction of automation, energy, hydro-mechanic, hygienic water and economic relations, he said.

He made the remarks in a meeting with visiting Slovenian Minister of Economic Development and Technology Zdravko Pocivalsek.
Nematzadeh said that Iran has great experience in electronics, pharmaceuticals, house appliances, launching science and technology parks, tourism services, agriculture and food industries.
Voicing Tehran’s readiness to increase bilateral cooperation on joint and lasting investment, the Iranian minister said that the two countries can establish broad industrial and trade relations.
Meanwhile, the Slovenian minister said, ‘We have come to Iran along with 45 representatives from Slovenian companies and make effort to give a boost to bilateral relations in the areas of industry, mining and trade.’
Pocivalsek said that energy, telecommunications, engineering, automaking, transportation and tourism are among main areas for Iran-Slovenia cooperation.
He expressed hope that the ground will be prepared for banking cooperation between the two countries.

He made the remarks on the sidelines of inauguration of the Second International Italy Exclusive Fair in Tehran.

Esfahbodi said Italy is major trade partner of Iran in Europe.

‘Some 146 commercial delegations from four corners of the world visited Iran this year and Italy with 380 delegates tops the list.’

President of Friuli-Venezia Giulia, Debora Serracchiani, who represents Italy in the Second International Exclusive Fair, said with accord signed between Iran and the G5+1 on July 14, the way will be paved for expansion of Iran-Italy relations.

Serracchiani said at a time when Europe is hit by an economic crisis, Italy has been able to export several billion euro goods thanks to its strong economy.

Meanwhile, Italian Ambassador to Tehran Mauro Conciatori said for his part that the exhibition is a symbol of mutual cooperation.

There were contacts in the first Italy exhibition which is hoped to lead to favorable cooperation, commented the Italian envoy.

‘We plan to expand our political and economic cooperation with Iran. With effective implementation of Iran nuclear accord, Tehran and Rome can develop strategic cooperation.’

On the upcoming visit of Iranian president to Italy, the Italian ambassador said that Iran-Italy cooperation will get further consolidated following visit of Iranian president to Italy.

‘Rouhani selected Italy as the first leg of his European visit, which is of high value for us. Rouhani’s visit to Italy was slated for November 2015 but it was postponed for certain reasons.’

Noting that a diplomatic and economic delegation will accompany president Rouhani, the Italian ambassador said.

Two weeks after Rouhani’s visit to Italy, a delegation comprising three Italian ministers and traders will travel to Iran and then the two countries can start wide-scale economic cooperation.

The First International Exclusive Fair was held at Tehran International Permanent Fair Ground in June 2014. Italy was among countries to maintain its relations with Iran during sanctions. Italy is one of Iran partners in Europe with annual trade stood at seven billion dollars.

In February a delegation, comprising Italian food and agricultural industries companies, led by Agricultural, Food and Forestry Policies Minister Maurizio Martina, will visit Iran.

Speaking in an exclusive interview with IRNA Samim said that we signed a contract to pay $105,000 for each 10 Gigabyte.

Currently Afghanistan is paying $250,000 for the same amount.

He said that as a result of entering the Internet market in Herat, gateways would be created in Herat, Kandahar, Nangarhar, Kabul and Mazar-i-Sharif for people to have access to Internet and the price would fall to 20 to 25 percent.

He added that Afghanistan has to pay $135,000 for each 10 Gigabyte of internet services from Kazakhstan.

He referred to low quality as well as high Internet charge and being fully dependent on Pakistan as major problems on the way of Afghanistan to access Internet.

He noted that implementing new plans will put an end to Internet problems in Afghanistan.

The Washington Free Beacon wrote “Iran’s economy is set to receive a substantial boost in the next two years as a result of billions in sanctions relief from the nuclear deal, according to a new forecast, a windfall that could also secure more resources for the Iranian military.”

Quoting a report by the World Bank, it said, “Iran’s GDP is projected to increase by 5.8 percent this year, compared to just 1.9 percent last year. Economic growth is then estimated to rise by 6.7 percent in 2017.”

The nuclear deal “opens the door for reintegration of [Iran] into the global economy and the reinvigoration of its oil, natural gas, and automotive sectors,” the World Bank said in its global economic prospects report, according to Washington Free Beacon.

“Sanctions could begin to be lifted in early 2016 if the International Atomic Energy Agency (IAEA) indicates the Iranian government has fulfilled its commitments under the pact,” the report continued. “Renewed optimism about the potential of the Iranian economy has already generated a flurry of investment interest by foreign companies.”

‘Records registration was conducted successfully in the NSOFC and the increased production according to the schedule was proved to be safe and free from all possible hazards,’ said Saeid Kuti, the Petroleum Ministry’s news agency SHANA Persian website reported.
He added that the results of the conducted tests show that the planning has been quite precise to meet the scheduled increase as soon as the sanctions will be terminated and there is now place for being worried.
‘One of the objectives of record registration has been identifying the weak and strong points in oil production, which were identified after analyzing the tests so that today the entire system is ready for production at the scheduled level,’ said Kuti.
He said that the quality of the oil produced by the NSOFC, too, is highly improved thanks to the research conducted, implemented renovations in the facilities and launching a number of new desalination units and expanding the capacity of some others.

According to Farbod Zaveh, South Korean carmakers are likely to continue operating strongly in Iran, though the same cannot be said of Chinese brands, Financial Tribune reported.
‘Chinese auto companies have been selling their cars at prices higher than their worth and in large numbers. However, Iranian customers are no longer interested in that range of products,’ he said.
‘At best, the Chinese carmakers might be able to sell in Iran for another year. In order to sustain their presence further, they will need to reduce prices. ‘
Zaveh noted that the same will not apply to South Korean cars, mainly because the quality of their cars is much higher.
‘Even if more Japanese and European carmakers enter Iran’s car market, the Koreans will not be pushed out because it has been globally proven that the quality of Korean cars are at times even higher than that of European brands,’ he said.
The expert said the economic situation will change for the better in Iran after the western-imposed sanctions on Iran over its nuclear energy program are eased. In that situation, several foreign brands are bound to vie for a share of Iran’s automotive market.
‘Of the brands that are already present, Hyundai, Kia and Toyota are sure to expand their businesses in Iran and some may even set up production lines in Iran so that they can sell vehicles at more competitive prices.
Iran and six world powers (the five permanent members of the United Nations Security Council plus Germany) reached a landmark agreement in July that limits Tehran’s nuclear program in exchange for an end to decades-old trade and financial restrictions that hampered the country’s economy. The deal, officially known as the Joint Comprehensive Plan of Action, is expected to take effect later this month.
While noting that European carmakers will not be the leading foreign auto companies in Iran, Zaveh said the Japanese are very conservative and it is not very likely of them to set up production lines and enter Iran’s market with direct investment.
‘However, there is a possibility of Nissan manufacturing Datsun in large numbers here in Iran and establish an export hub for the region,’ he said.
The automotive expert further said it will be more difficult for countries that have close business ties with the United States to operate in Iran.
‘Due to the time needed for completing bureaucratic procedures, no major changes are expected to take place in Iran for at least another nine months,’ he said.
That being said, Zaveh does not mention the multilateral talks held recently by foreign automakers for signing contracts with Iranian car manufacturers such as Iran Khodro, SAIPA and Pars Khodro.
However, recent trends show that Iranians prefer any car that is not produced by the three main producers due to their perceived low quality and high price.
Meanwhile, the latest statistics released by Iran’s Customs Administration show that Iran imported 30,400 cars worth $717 million during the first nine months of the current Iranian year (ended Dec. 21, 2015). During the same period, the total value of imported cars and auto parts amounted to$1.3 billion. The same figure for the first eight months of the Iranian fiscal year (ended Nov. 21, 2015) stood at $1.2 billion, which registers a 12.5% increase in terms of value compared with the same period of last year. According to a report released by automotive news website Carnet, during the first eight months of the year, Iran imported 26,000 vehicles worth $644 million.