NIOC Rebukes Private Sector Schemes

NIOC Rebukes Private Sector SchemesNIOC Rebukes Private Sector Schemes

The director of international affairs of the Iranian National Oil Co. (NIOC), Seyed Mohsen Ghamsari, who was talking on the sidelines of the 20th International Oil, Gas, Refining and Petrochemical Exhibition in Tehran rejected private sector accusations against the NIOC that it has tried to monopolize the oil market, ILNA news agency reported.

Criticizing the private sector for concentrating more on functioning as brokers and middleman rather than taking risks to invest, Ghamsari said,” the private sector is trying to buy oil with a lower price than what NIOC offers and then sell it in the international  market, which is a kind of go-between.”

Ghamsari underlined that after the economic sanctions become history, the major international companies will obviously have no interest in working with wheelers and dealers.

Expressing NIOC’s willingness to help private companies increase its risk-taking potential in oil business, he said,” this sector can provide us with financial assistance as we have faced crippling banking restrictions.”

As soon as the sanctions are lifted, Iran would be able to reach its pre-sanctions oil export quota, he opined. On the other hand, due to the oil glut in international markets as well as changing consumption patterns, it will not be easy for Iran to restore its earlier position in the global crude market; the news agency quoted him as saying.

Stressing the importance of private sector role and influence in the world market, Ghamsari noted,” private companies from Iran have recently entered markets in western Africa, which is great news.”

Reemphasizing the need for private sector to play a bigger role in selling oil byproducts rather than crude oil, Ghamsari said,” given the circumstances, selling crude is more challenging; nonetheless, if private firms are competent enough, they could also be tasked with selling crude oil.”