Feb 24, 2015, 6:52 PM
News Code: 81519175
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Tehran, Feb 24, IRNA – The Majlis has voted in favor of a piece of legislation allowing the National Development Fund (NDF) develop oil and gas fields Iran shares with neighboring countries.

The legislators gave green light to allocation of $4.8 billion from NDF to develop joint hydrocarbon fields.

Oil Minister Bijan Namdar Zangeneh recently warned that the petroleum industry was in dire need of finance.

“The oil industry needs financial resources,” Zangeneh said.

“When the oil price was $100 p/b and we sold two million barrels of oil, the Oil Ministry’s share was $13 billion. But for the next calendar year, the parliament has projected the oil price at around $40 a barrel and exports are a bit higher than 1 million barrels and the Oil Ministry will get less than $3 billion. How can we run the petroleum industry with this [meager] money,” he asked parliamentarians. Iran’s calendar year starts on March 21.

Zangeneh said his ministry’s share of oil sales should increase from 14.5% to 30% so that it could accelerate development of joint oil and gas fields.

He said Iran invested $21 billion in the oil sector in the calendar year to March 2012 and $17 billion in the following year.

'With this trend, investment from our own resources will be nil next year,” he said.

Zangeneh warned that any blow to the oil sector would “destroy the National Development Fund” which is the country’s rain day kitty awash with petrodollars.

MR/1664