Tehran, Iran, Aug. 3
By Mehdi Sepahvand -- Trend:
An Iranian official has said the oil sector will need an investment of 100 to 200 billion dollars during the implementation of the Six Development Plan.
The Sixth Development Plan of Iran is being finalized at the Oil Ministry where it needs at least $100 billion and at most $200 billion investment, Oil Ministry's Director of Strategic Plans Said Qavampour said, IRNA news agency reported August 3.
He explained that the Oil Ministry is arranging its projects according to significance, whereby due funds will be assigned to them.
Two years ago the incoming minister Bijan Zanganeh started to prioritize oil projects due to insufficient fund. But since last year Iran's oil revenue has suffered a great loss because fall in global oil prices worsened the situation.
In a live interview on the national TV last week, Zanganeh said when Iran used to sell oil at $110 per barrel and its export stood at 2.5 million barrels per day, the National Iranian Oil Company's share of the revenue was 14.5 percent.
"But now things have changed and oil is sold at $50 per barrel and we are selling one million barrels a day. In other words, the Iranian National Iranian Oil Company's share has dropped to 3 percent," he said.
Iran's investment in the oil industry has been 19, 21, 10, and 6 billion dollars in the past four years respectively. It is said that for the current Iranian fiscal year (which started March 21) the investment will be far smaller than last year's.
Iran's Supreme Leader Ayatollah Ali Khamenei outlined general policies of the country's sixth five-year development plan (2016-2021) in early July.
The plan includes general policies on economic, technological, social, security and defensive, foreign policy, legal, and cultural affairs.
In the field of economy, it stipulates that the country's economic growth should continue steadily with an average rate of 8 percent during the five-year period.
It also supports the establishment of non-government companies for exploration and development of mines, oil and gas fields, and attracting foreign investment.
Edited by CN