NIOC CEO Said No Problem with Oil Debt Collection

Source: 5/31/2022, Location: Asia

The managing director of the National Iranian Oil Company (NIOC) here said there is no problem regarding oil debt collection.

Mohsen Khojastehmehr, who made the remark in his talks with IRNA, added with absolute certainty that the 13th administration is exporting more oil when compared to the previous government and seriously following up and managing the issues related to exports.

Asked about the views of some critics who argue the conflict between Russia and Ukraine and Moscow’s decision to sell oil cheaper would cast a shadow over Iran’s presence in its traditional markets and result in a reduction in the country’s exports, the NIOC CEO responded, “The country is exporting its oil like the past, and in the meantime the oil market has always its own rules and regulations.”

Responding to a question whether the 40 percent hike in oil exports announced by Seyyed Ebrahim Raisi during his presidency and confirmed by the Central Bank of Iran (CBI) and Ministry of Economic Affairs and Finance was due to selling it to the traditional customers or finding new buyers, Khojastehmehr said the country has sold its oil to new customers at new destinations and also managed to revitalize some parts of its traditional markets.

He praised the industrious staff of the National Iranian Oil Company for their great efforts and contribution to the increase in the country’s exports.

Shifting to investment in Iran’s oil industry, he said the production of 5.7 million barrels per day is a real possibility and based on the oil reservoirs’ extraction capacities.

To that end, the oil sector needs to invest $90 billion, and the country will first utilize its own financial resources, the NIOC chief noted but did not rule out the investment of foreign companies in the development projects.

Khojastehmehr touched upon the sanctions imposed on Iran and continued, “If we apply all domestic capacities to neutralize the sanctions, the country will not be shaken, and this is exactly the resistance economy.”

In response to a question posed about Iranian companies’ technical know-how needed for participation in other countries’ giant oil projects, he said nobody believed in 2011 – during the 10th administration’s term – that domestic companies could develop the phases of the South Pars field, but a contract worth around $22 billion was signed on the development of 10 SP phases with Iranian companies and it worked.

Iranian companies have gained invaluable experiences and can implement international projects, he assured.

Khojastehmehr said Iran has signed contracts and memorandums of understanding on the participation of domestic companies in international projects.

The country’s private sector has also carried out some measures for exporting technical and engineering services, explained the NIOC CEO, adding his company is also ready to export these services.

According to him, the NIOC is planning to modify the process of offering crude oil at the Iran Energy Exchange (IRENEX).

The NIOC has made a proposal that is under study, Khojastehmehr mentioned, adding the new model consists of bonds for commodity deposit certificates.

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