Energy expert: Iran will be weaker in energy sector than Romania in 1970

Oil&Gas Materials 12 March 2020 10:53 (UTC +04:00)
Energy expert: Iran will be weaker in energy sector than Romania in 1970

BAKU, Azerbaijan, March 12

By Elnur Baghishov - Trend:

It is unlikely that Iran will sell large oil products in the near future, Iranian expert on energy issues Mehrdad Emadi told Trend.

According to Emadi, there are three main reasons why oil products are not sold in large quantities.

"The first reason is that there is a need for downstream industry activities, investments and modern technology to manufacture oil products. Iran's 80-90 percent decline in oil exports as a result of US sanctions does not contribute to this investment," he said.

Emadi pointed out that Iranian banks have difficulty paying one-third of their depositors.

"Second reason - Iran must sign long-term contracts with other countries and companies to sell oil products. Usually such contracts last for more than two years. In the current situation (US sanctions) other countries do not enter into such agreements with Iran,” he said.

"Third reason - Saudi Arabia has performed better than Iran in the markets, which Iran has announced before to sell its oil products. Saudi Arabia offered better opportunities in terms of price, delivery and payment and Saudi Arabia has signed agreements with India and Turkey in this regard," Emadi said.

"Generally, Iran's massive production and export of oil products will not be available in the near future. Because oil production, oil refineries need huge investments," he said.

Expert added that strong experts in Iran's energy sector are moving to other countries.

"Considering all these, Iran will be weaker in energy sector than Romania in 1970," he said.

In general, Iran has 125 oil fields and 59 gas fields. Iran's total hydrocarbon reserves are 836 billion barrels. With its technology equipment, it can produce 239 billion barrels. Iran can use 29 percent and 71 percent remain underground.

The US imposed new sanctions on Iran in November 2018. Over the past period, the sanctions included Iranian oil exports, more than 700 banks, companies and individuals.