Oct 27, 2013, 4:36 PM
News Code: 80877101
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Oil minister predicts anti-Iran sanctions will be lifted

Kish, Hormuzgan Prov., Oct 27, IRNA – Minister of Oil Bijan Namdar Zanganeh said on Sunday that sanctions on Iran will be softened, so efforts should be made to hasten pace of Iran's progress once the sanctions are lifted and of course the policy of the “Government of Prudence and Hope” is on the same basis.

Addressing the inaugural ceremony of the International Seminar of National Development Fund, Zanganeh said the important point regarding the sanctions is that the country can be managed with export of one million barrels of oil and if the sanctions are lifted $54.5 billion in additional revenues can be made annually out of oil sale.

He said that if annually a sum of $14 billion is to be earned out of increase in oil revenues in the post-sanctions era to make up budget deficit, then a total of $40 billion will be available – a figure which would reach as much as $320 billion in net income which can be used for investment.

He said investors should provide 30 percent of funds for projects so that the National Development Fund credits can be used for investment. “One can be optimistic that more than 800 billion dollars can be invested in the oil industry in an eight-year period.”

He noted that government has come to the conclusion that switching to national currency, rial and injecting it into development credits will not result in sustainable development of the country, rather, it will turn into a big employer with the least efficiency.

The minister said the attitude of the Government of Prudence and Hope to oil revenues promises a new era. “Sustainable development can be achieved by true private sector.”

Elsewhere in his remarks, Zanganeh touched on prospect of oil supply and demand in the international markets and said global oil demand is predicted to rise in parts of the world in the mid- and long-run despite ongoing economic stagnation.

He said based on OEPC prediction, more than $4.2 trillion should be invested in the oil industry between 2011 and 2035 and based on the estimates of the International Energy Agency the figure will reach as much as $14 trillion, a major portion of which should be used in the oil-related fields.