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IPF Exclusive, July 2013

Tenth Iran Petrochemical Forum | Summit 2013

Tehran Hosts 18th Oil Show

The 18th International Oil, Gas, Refining and Petrochemical Exhibition was inaugurated on the closing days of the calendar month of Farvardin (April 17) to provide an opportunity for global oil companies to set up their colorful stands at Tehran International Fairground amidst the economic conditions and Western sanctions. As commonly practiced in the previous years, these companies quietly look after their own marketing and in response to different questions about how to cooperate with Iran they would simply offer you a smile!

In the meantime, what could be observed is the routine process that has been practiced in all the eighteen rounds of the oil show. In such exhibitions and due to the presence of senior state officials as well as the oil minister and his deputies new promises are given to those involved in the oil industry. However, these promises and good news would not find an opportunity to be realized until the next fair.

Last year on a similar occasion and on the days when the 17th International Oil, Gas, Refining and Petrochemical Exhibition was being held, Oil Minister Rostam Qassemi and his deputies and even First Vice-President Mohammad Reza Rahimi announced full support for local manufacturers and it was decided to improve the condition of local oil producers. Nonetheless, what was heard from members of the association of oil equipment manufacturers after a year was that only US dollars five billion out of the promised nine billion had been purchased from domestic manufacturers. This meant a debt of over US dollars four billion in hard currency and 1200 billion in local currency (rials).

Iran would remain a secure source of energy for some countries which have kept distance from hostile policies of the West. Iran would permanently supply oil to countries such as India and China but these countries should also know that long-term maintenance of energy by Iran would have some costs.

However, as in the previous years First VP Rahimi attended the international exhibition in order to make an announcement like before in the midst of the oil embargo and claim that the Westerners are desperate in the face of their sanctions against Iran. "Upon a balance between imports and exports Iran would have no need for oil revenues. Today, some foreign and Western countries which have imposed oil sanctions on Iran have been humiliated. Iran would remain a secure source of energy for some countries which have kept distance from hostile policies of the West. Iran would permanently supply oil to countries such as India and China but these countries should also know that long-term maintenance of energy by Iran would have some costs."

This high-ranking official while stressing that Iran would not appease any country with oil, noted: "While the majority of oil wells in neighboring countries are at the disposal of the United States, Iran has the most independent oil industry in the world."

He pointed to Iran's self-sufficiency in producing some commodities and products which had previously been sanctioned by the West and said: "After sanctioning gasoil by Western countries, Iran has reached self-sufficiency in production of this commodity and thus responded to gasoil sanctions of the West. Later, with cooperation of domestic experts Iran designed local and national planes and currently experimental flight of the airplanes has started.

The First Vice President termed the sanctions imposed on Iran a huge flood which intended to destroy the Islamic Republic but soon the flood subsided and its water helped us fill low-water dams in the country."

Rahimi further remarked: "The flood of sanctions disrupted our work but the enemies did not know that we are able to put things in order quickly. In the calendar year 1392 (began March 21, 2013) we will take advantage of our toil. We have been able to establish the 14th important insurance in the world in the midst of the sanctions, increase the salary of our employees and God Willing will employ 200 to 400 thousand people."

Stressing that the enemies were after harming the Iranian nation, Rahimi said on the contrary they had failed. He added: "The message is that with regard to the motto of the year, that is to say ‘The Year of Political and Economic Epic', we should plan so that no more oil would be exported but rather be transferred inside the country to petrochemical products and those products be exported; and we will do so."

I Thank Foreign Companies: Rostam Qassemi, the Iranian oil minister since the past two years, spoke in line with Rahimi's remarks on "humiliation" of those who imposed sanctions and like the previous year thanked foreign companies and said: "Presence of different countries from across the five continents of the world in the International Oil, Gas, Refining and Petrochemical Exhibition is indicative of the fact that the Iranian oil industry is developing and making growth and no country can stop the growth of the industry. We wish to thank foreign companies for attending the eighteenth oil show as our relationship with them is friendly and we hope to boost such friendly ties as compared to the past."

The oil minister referred to the celebrations marking independence of the oil industry despite the sanctions and said: "Today, no oil product is imported into the country and in future Iran will become a major exporter of oil products. Although we welcome cooperation of all industrialized world countries, Iranian craftsmen will always be supported in particular. Growth of energy despite stagnation in some parts of the world is still continuing."

The oil minister by referring to Iran-Iraq joint cooperation in the field of energy said: "Iran is ready to expand oil cooperate with Iraq. Iran is ready for any kind of cooperation with Iraq and development of joint fields and export of Iran's gas to Iraq is within the framework of such cooperation."

The oil minister also supported presence of Iranian oil industry equipment manufacturers in Iraq. Qassemi termed US dollars 100 per barrel of oil favorable for producers and consumers and said: "In case OPEC member countries deem so an extraordinary meeting would be held for reviewing the oil price in the market."


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  July 2013
No. 68