Iran’s Oil Ministry to settle debt to contractors through bartering

Business Materials 12 May 2013 13:10 (UTC +04:00)

Azerbaijan, Baku, May.12/ Trend F.Karimov/

The Iranian parliament has authorized the Oil Ministry to settle its debt to domestic and foreign contractors to the ceiling of $7 billion through bartering with crude oil and gas condensates, the Mehr News Agency reported.

MP Ahmad Tavakkoli opposed today's parliament approval, saying it was against goals of the fifth five-year development plan (2010-2015).

The sum can be paid through crude oil incomes in excess of the amount which has been mentioned in the current year's national budget.

The proposed national budget amounts to about 7.3 quadrillion rials (approximately $595 billion), showing a 22 percent rise year on year.

The budget bill has predicted a 40 percent drop in oil revenues compared to the current year's projected figure.

It has forecast that oil revenues will hit 660 trillion rials (about $53.8 billion), 40 percent down year on year.

Reportedly, the national budget has set the price of oil at $95 per barrel, based on the exchange rate of 12,260 rials, which has been fixed by the Central Bank of Iran. ­­