Veep: Oil Industry to Undergo Drastic Changes

Veep: Oil Industry to Undergo Drastic ChangesVeep: Oil Industry to Undergo Drastic Changes

Despite international pressures exerted on Iran's oil industry by western sanctions, it managed to carry the burden successfully, first vice president said on Monday.

Addressing a panel of high-ranking oil officials on "Resistance Economy" in the Oil Ministry, Es'haq Jahangiri added that the oil industry has played a key role in developing the economy by creating jobs and exporting crude and other oil byproducts, Shana reported.

"Resistance Economy" is a set of policies aimed at promoting economic self-reliance and weaning the country off heavy dependence on oil revenues.

Jahangiri noted that the oil industry would definitely undergo drastic changes in post-sanctions era.

In spite of deep pessimism about the future of JCPOA, its implementation was "such a great accomplishment" that it will culminate in a tangible boost in oil and industrial sectors.

Many financial sanctions, including the severance of ties with the international SWIFT banking system and restrictions in opening letters of credit, are now effectively lifted.

Oil revenues are expected to rise gradually, as the Persian Gulf state prepares to reach its pre-sanctions level by pumping more crude.

The vice president noted that oil is not just a source of revenue, it also plays a pivotal role in the country's economic development, adding that oil money forms the backbone of Iran's economy.

Nonetheless, mismanagement has always been a major hurdle to using hydrocarbon resources efficiently.

Referring to the Oil Ministry's plan to attract $200 billion in investments to undertake oil projects, he noted that by making such a substantial investment, oil industry will witness a big revolution and create a large number of jobs, which will definitely augment the industry.

Comparing oil officials with troops who served on the frontline of fighting sanctions, Jahangiri said the US and Europeans were well aware of the fact that Iran's economy was heavily dependent on oil, which explains why they imposed sanctions on it.

The vice president said the oil industry is expected to take major decisions in post-sanctions ear, although Iranian managers have already proved to be capable of managing difficult situations.

Commending the oil and gas experts for developing the South Pars Gas Field in the last two years, he said, "When the 11th administration took office, Qatar extracted twice as much as Iran from the field, yet the gap is decreasing day by day. However, the heavy losses incurred by previous administration's mismanagement, standing at about $7.5 billion, cannot be compensated as it is too late to cry over spilt milk."

Pointing to the new Iranian oil and gas contracts, known as Iran Petroleum Contract, Jahangiri said the new framework has been based on previous experiences and is aimed at attracting foreign investment and paving the way for technology transfer to Iran.

"Not all companies will show willingness to invest in Iran or accept cooperation terms with the country. Nevertheless, what oil officials should do is to facilitate foreign investors' presence in Iran and the administration will fully endorse the Oil Ministry's policies," he said.