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August 2011, No. 61


Exclusive 16th International Oil Show

Oil Bourse Inaugurated in Tehran


Banking resources would be applied in line with production, growth of industries and oil industry in order to supply a better and much cheaper feed for the oil industry.


The first Iranian heavy crude oil consignment for export appeared on Iran Mercantile Exchange and Iran Oil Bourse officially started it operation after years of efforts to offer this commodity.

Oil Bourse eliminates restrictions for foreign investors

Addressing the inaugural session First Vice President Mohammad Reza Rahimi stressed that the launch of Iran oil bourse has prepared the ground for long-term investment. He said it has also provided the opportunity for eliminating restrictions in the way of foreign investment.

Pointing to the bill that is to be approved at the High Council of Bourse and be included in the agenda of the Economic Commission of the government and later in the agenda of the cabinet ministers, Rahimi said according to the bill commodities that are transacted in the Mercantile Exchange would be subject to tax exemption to some extent.

He said efforts are being made to create new capacities for new transactions in petrochemical and oil bourses, adding that regional bourses would complement each other and Iran oil bourse would further strengthen the bourses mentioned.

The first vice president further remarked that oil bourse would further increase volume of transactions and noted that banks would assist such bourses and at the same time general atmosphere of the country would become more suitable for craftsmen, contractors, advisors and producers in the oil industry.

He said banking resources would be applied in line with production, growth of industries and oil industry in order to supply a better and much cheaper feed for the oil industry.

Oil is nationalized again

Also speaking at the session, Caretaker of Iranian Oil Ministry Mohammad Aliabadi said the oil bourse would be turned into a center for monitoring oil prices in the world. Pointing to the fact that implementation of the project for targeted subsidies, delegating activities to the people within policies of Article 44 (of the Constitution) and gaining access to nuclear energy were among major concerns that were realized in the 9th and 10th governments, Aliabadi said at the moment the country's main economic policy is to create stability in financial and capital markets as playing with the market is a highly dangerous game.

Stressing that for the launch of economic development projects the government has taken numerous expert steps, the official said that today with the inauguration of the oil bourse once again in the history of Iranian oil industry, oil was nationalized.

He pointed out that launching of the oil bourse has once again opened a new market in financial resources of the country. He further remarked that with the inauguration of the bourse and through domestic and foreign transactions the country has been provided with the opportunity to closely monitor world information on oil prices.

Oil monopoly coming out of government's hands

Economy and Finance Minister Shamseddin Hosseini, also speaking at the event, said that with the inauguration of oil bourse a new era has been launched in the Iranian oil industry. "I as the head of the High Council of Bourse consider this area as a leap in the domain of the development of oil industry."

He said since the formation of the 9th government, full operation of the oil bourse had been stressed and in 2007 with the arrival of petrochemical products into the bourse it was practically launched and in 2009 with the opening of petrochemical export ring it was further flourished.

He said that this year by offering gasoline and furnace fuel in the bourse great strides were taken for the inauguration of Iran oil bourse. Fortunately, he added,  today with the entry of crude oil into the International Kish Bourse, Iran liberated its oil transactions which were exclusively in the hands of government.

Hosseini further remarked that certain foreign media and publications have tried to misrepresent inclusion of Iran crude oil into bourse as a threat but today such an inclusion paved the way for the operation of the oil bourse.

He said in the coming years with the inclusion of future transactions and by benefitting from full support and participation, a new capacity would b created for the Iranian economy.

Saying that all the ceding to the non-governmental sectors cost 800 thousand billion rials, the minister said oil transactions in the bourse could compensate the figure within a year. Therefore, he further remarked, it is clear that the government monopoly in the field of oil has been broken and true privatization has taken its place. He expressed hope that transactions and other financial tools would become operational in this sector in future in order to facilitate supply of financial resources.

 

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  August 2011
No. 61