Spanish foreign minister in Tehran, eager for economic ties with Iran

Left to right: Industry Minister Jose Manuel Soria, Public Works and Transport Minister Ana Pastor, Foreign Minister Jose Manuel Garcia-Margallo and Iranian President Hassan Rouhani, on 07SEP15 at the Sa'dabad Palace in Tehran.

On 06SEP15 Spain’s Foreign Minister José Manuel García-Margallo arrived in Tehran for a 3-day visit. Margallo, who was accompanied by a 70-member delegation, held separate meetings with Iran’s President Hassan Rouhani and Foreign Minister Mohammad Javad Zarif. During the meetings, the Spanish official discussed a wide range of issues including bilateral ties between the two countries and ongoing crisis in the Middle East. [Source: PressTV]

Iranian Oil Minister Bijan Zanganeh with Spanish Industry, Energy and Tourism Minister Jose Manuel Soria

According to Oil and Gas 360:

Spain reached an agreement with Iran to ship natural gas from Iran to Europe following the release of sanctions against the country. Iranian authorities and an economic trade delegation of some 70 Spanish companies, including Repsol (ticker: REP) accompanied by government officials, visited Tehran Monday to discuss the details.

Iranian Oil Minister Bijan Zanganeh met with Spanish Industry, Energy and Tourism Minister Jose Manuel Soria and declared Iran’s willingness to develop the infrastructure Spain needs to supply Europe with gas from the South Pars gas field.

“In the meeting we explained Iran’s facilities and programs for development of oil, gas and petrochemical industries to the Spanish companies and they expressed their interest to cooperate in these fields,” Zanganeh said. “It was emphasized in the meeting that Iranian and Spanish companies should continue their relations and the Spanish government needs to set the grounds for the presence of their companies in Iran,” he continued.

Left: Spanish Minister of Public Works and Transport Ana Pastor

According to Latin American Herald Tribune:

Spanish Minister of Public Works and Transport Ana Pastor announced that Spain and Iran will sign “in the shortest time possible,” a new transport agreement, which is expected to link Tehran with Madrid and Barcelona through direct flights, adding that two Iranian organizations and a Spanish airliner have already shown interest.

Pastor made the announcement at the opening of a summit in the Chamber of Commerce, Industries and Mines in Tehran, where she arrived on an official trip with the Spanish foreign minister, Jose Manuel Garcia-Margallo, and industry minister, Jose Manuel Soria.

She explained that the civil aviation authorities have already agreed to open the way for the signing of the new transport agreement as soon as possible, under which direct flights between the two countries will be resumed, whether passenger flights or cargo.

There are two Iranian companies and a Spanish firm interested in carrying out these direct flights to foster the strengthening of economic, cultural and social relations between the two countries, according to Pastor.

COMMENTARY: Likely the two Iranian carriers are Iran Air and Mahan Air, while the Spanish carrier could be Iberia Airlines, which currently flies non-direct flights to Tehran. Mahan Air has been expanding its service to Europe, which includes A346 aircraft recently acquired with Iraqi assistance.

Spanish Foreign Minister Jose Manuel Garcia-Margallo with Iranian Foreign Minister Mohammad Javad Zarif

According to PressTV:

Speaking at a joint press conference with his Iranian counterpart Mohammad Javad Zarif in Tehran on Monday, Spanish Foreign Minister Jose Manuel Garcia Margallo hailed the JCPOA, saying his country is considering cooperation with Iran on all fronts.

Zarif touched upon his meeting earlier in the day with the Spanish foreign minister, and said a whole range of issues were brought up for discussion during the talks. “I had different political and regional discussions with the Spanish foreign minister, and we [also] talked about a railroad, transportation and economic infrastructure,” said Zarif in the press briefing.

Among other issues discussed, said the Iranian foreign minister, were human rights and refugees’ rights as well as the situation in Iraq, Syria and Afghanistan plus the Yemen crisis. He said they also discussed regional threats which, as Zarif added, have resulted in security threats and the recent refugee crisis.

COMMENTARY: There is little doubt that since the signing of JCPOA the Iranian foreign ministry is the busiest in the region. It may even be said to possess the region's diplomatic center of gravity.

 

Foreign Ministries of Spain and Iran in conference on 07SEP15 in Tehran

Right: Spain's Ambassador to Iran Pedro Antonio Villena

Photos: Mehgdad Madadi and Siamak Ebrahimi at Tasnim News Agency 

Iran Says It can Boost Oil Output Just Days After Sanctions End

Iran’s Oil Minister Bijan Zanganeh said today in an interview with state TV that Iran can boost oil production “in one week” after international sanctions are lifted. He said production could increase by 500,000 bpd within a week after sanctions and by 1 million bpd within a month following that. Zanganeh warned that OPEC’s refusal to accommodate Iran in export markets would result in lower crude prices. (IRNA/Bloomberg, 2 August)

“Our lost share of market, which was about 1 million barrel a day, will manifest itself,” Zanganeh said. Even if crude prices fall, Iran’s (oil export) revenues will stay the same because exports are due to double, he added. (Shana/Bloomberg, 2 August)

Iran produced an average of 2.85 million barrels a day in July compared with 3.6 million at the end of 2011 when oil and banking sanctions went into effect. The Iranian oil exports declined to 1.4 million bpd after sanctions compared to 2.6 million bpd in 2011.

“Some of the most effective sanctions with regard to the oil industry were those targeted aspects such as sales, volumes, shipment, insurance and the transfer of the money,” Zanganeh said. “If those issues are resolved, Iran will regain the market share that it has lost which amounts to more than one million barrels a day.” (IRNA/Press TV, 2 August)

Amid surplus crude supply, the global benchmark Brent crude fell about 50 percent last year and dropped 2.1 percent on Friday to $52.21 a barrel on the London-based ICE Futures Europe exchange.

File photo: Iran’s Oil Minister Bijan Zanganeh (Atta Kenare/AFP/Getty Images/Bloomberg)

Iran Not Worried about Oil Market

Storing 40 million Barrels of oil at Sea in Anticipation of Nuclear Agreement

Iranian Oil Minister Bijan Zanganeh has told German daily Tagesspiel in an interview that Iran is not worried about the market for sale of its oil when it raises output if it reaches a nuclear deal with the West.

“The situation is favorable for us, because in Iran and Middle East, the cost is less than $10 (per barrel). That’s why we’re not worried about the market,” Zanganeh said. (Iran Daily, 16 June)

The global market is currently facing a supply glut. Ample supplies are expected to continue in near term, outweighing geopolitical concerns about the conflicts in the region. Prices are expected to be restrained despite seasonal demand increases as Saudi Arabia and other key producers maintain high oil output to maintain their market shares. Brent crude oil price was at $63 today.

Iran is storing as much as 40 million barrels of crude oil on supertankers at sea in preparation of a nuclear deal.

“The first thing (we) will try and do is to offload quite a lot of storage… we are going to sell this oil at any price,” said Mehdi Varzi, a former official at the state-run National Iranian Oil Company. “Floating storage is there to be put onto the market as soon as possible after some sort of agreement.” (Reuters/Trade Arabia, 16 June)

Shipping sources and tanker tracking data on Reuters showed over the past three months Iran had deployed at least 15 very large crude carriers (VLCCs), each capable of two million barrels, to store oil. The approximate 38 million barrels of Iranian crude in floating storage, in addition to shore-based stocks, could quickly add supply to the market. (Reuters, 16 June)

Under the current interim nuclear agreement, JPOA, Iran exports approximately 1 million barrels a day. Oil Minister Zanganeh has said Iran would pump another 500,000 within a month of lifting of sanctions and up to 1 million bpd within six months. Most analysts believe it will take more time for increases at those levels.

File photo: Iran’s main oil export terminal at Kharq Island (Getty Images)

Venezuela Oil Minister in Tehran

Venezuelan Oil Minister Asdrubal Chavez arrived in Tehran on Monday for talks with Iranian Oil Minister Bijan Zanganeh and other ministry officials on oil price crisis. In last OPEC meeting on 27 November, Venezuela pushed hard to curb output to stop the decline in prices, but OPEC decided to maintain current production ceilings.

Low oil prices have particularly hit Venezuela hard, with the country on the brink of financial default.

Meantime, Brent crude prices hit five-year low on Monday. Today, Brent futures rebounded a bit, but still trading at $66.44 a barrel for January delivery.

Photo credit: Iranian Oil Minister Bijan Zanganeh (r.) greeting his Venezuelan counterpart, Asdrubal Chavez; Tehran, 8 December 2014 (FNA)

Iran to Draw on Sovereign Wealth Fund to Cope with Plunging Oil Prices

Iranian Oil Minister Bijan Zanganeh told oil ministry’s news site SHANA that Iran will draw on its National Development Fund, its sovereign wealth fund, to cope with damage to its oil industry from plunging global oil prices.

“By drawing upon its National Development Fund to reimburse contractors active in upstream projects, Iran will make up for the impact of the oil revenue decline on these projects,” Zanganeh said. (SHANA, 14 November/Reuters, 15 November)

Iran needs to invest heavily in its aging oil production facilities and infrastructure, and the oil price plunge has slashed the funds it has available to do that.

Sovereign Wealth Fund Institute, which tracks such funds worldwide, estimates that Iran’s Fund is worth about $62 billion, but some of its assets are frozen by the sanctions imposed over the country’s nuclear program. By contrast, Saudi Arabia’s sovereign wealth fund exceeds $700 billion.

The International Monetary Fund estimates that with oil prices at $80 a barrel, Iran will run a budget deficit of $8.6 billion this year at the official exchange rate. (Reuters, 15 November)

Iran will adopt “contradictory” monetary policy for the next year, Zanganeh said. He pointed out that the government will raise tax revenues due to plunging oil prices, but such move would slow down an economy that is recovering only slowly from a deep recession triggered by the sanctions. (SHANA, 15 November)

File photo: Iran's oil export terminal at Kharq island (Getty Images)

Iran Annual Oil Exports at $45 Billion

Iranian Oil Minister Bijan Zanganeh said in Tehran on Thursday that Iran’s oil exports in the first nine months of the current Iranian calendar year (starting 21 March 2013) reached $34 billion; with Iran collecting $32 billion of oil revenues in the same period.

The oil revenue figures represent annual sales of $45 billion. Before 2012 sanctions, Iranian oil export annual revenues were close to $100 billion.

File photo: Iran’s oil export terminal at Kharq Island (Getty Images)

Iran's Oil Minister Arrives at South Pars – ‘Highest Priority’

Iran’s Oil Minister Bijan Namdar Zanganeh said today the development of South Pars Gas Field is of the highest priority. He made the remarks in Tehran before departing for South Pars, which is located in Asalouyeh, a port city in the Persian Gulf.

“The Oil Ministry is trying to put the completed phases of South Pars into service as we urgently need these joint fields given the country’s need for gas,” Zanganeh said. (IRNA/Press TV, 22 August)

The huge South Pars gas field is shared by Iran and Qatar. The larger field covers an area of 9,700 square kilometers, 3,700 square kilometers of which are in Iran's territorial waters (South Pars). The remaining 6,000 square kilometers, referred to as the North Dome, are in Qatar's territorial waters.

The Iranian gas field contains 14 trillion cubic meters of natural gas, about eight percent of the world's reserves, and more than 18 billion barrels of LNG resources.

File photo: A plant at Iran's South Pars Gas Field (IRNA/Press TV)