Former Iranian oil minister: Private sector should not sell crude oil at discount prices

Business Materials 11 June 2013 13:45 (UTC +04:00)

Azerbaijan, Baku, Jun.11/ Trend F.Karimov/

Former Iranian oil minister Masoud Mirkazemi has said the private sector should not sell crude oil on the international market at discount prices to the extent that it brings down overall prices, the Tasnim News Agency reported.

Mirkazemi, who is chairman of the Majlis energy committee, added that selling crude oil in the international market requires special regulations.

Selling 50,000 barrels of crude oil by the private sector at low prices should not affect multimillion barrel selling of the National Iranian Oil Company, he said.

In April, the Mehr News Agency quoted National Iranian Oil Company managing director Ahmad Qalehbani as saying the Iranian private sector has not been successful in exporting crude oil.

Despite taking supportive measures by the Oil Ministry, the private sector failed to export crude oil due to its inability to provide the necessary guarantees and opening LCs, he added.

Meanwhile, in February, IRNA quoted Qalehbani as saying that the Iranian private sector has exported two, one-million barrel consignments of crude oil in the past Iranian calendar year which ended on March 20.

The NIOC received 320 requests from domestic and foreign private companies to buy Iranian crude oil, he said. The private sector is facing problems such as providing tankers, insuring shipments and securing financial transactions, he added.

In July 2012, Oil Minister Rostam Qasemi said that although the West has imposed sanctions on Iran's oil sector with the goal of toppling the Islamic establishment, the country's oil exports will never be halted because oil consuming countries need Iranian crude.

"There are many ways to easily sell oil, one of which is to take advantage of businessmen and the private sector," Qasemi said.