In his opening address to the Tehran exhibition, Iran’s Oil Minister Masoud Mirkazemi said the increase in number of participants in the 15th International Oil, Gas, Refining & Petrochemical Exhibition (April 22-26) signals ineffectiveness of attempts to impose sanctions on Iran.

Masoud Mirkazemi, Iran’s Oil Minister

"Despite certain western states’ efforts to impose sanctions against Iran, the number of foreign companies attending this year’s exposition is higher than that in the previous years, substantiating ineffectiveness of the sanctions and limitations," Mirkazemi said

He noted that not only Iran has not been marginalized in the wake of the sanctions but its companies have had strong presence in the international tenders and projects, emerging as exporters of the oil and engineering services.

Elsewhere in his remarks, the Minister voiced displeasure at present crude prices on the markets, saying they are "unfair."

"Current oil and gas prices on world markets are unfair. Oil was sold for USD11 a barrel in 1975 but the price for related technology continued surging year on year. So, if the energy prices are not justified and logical, development of oil fields too would not be economical either," announced the minister.

He put Iran’s exploitable oil reserves at 138 billion barrels and that of natural gas at over 29 trillion cubic meters, saying the Islamic Republic of Iran has been able to use its resources thanks to its technological and engineering advances.

Mirkazemi then cited Iranian oil industry’s need to a sum of $200 billion in order to get developed, saying $125 billion need to be invested in the upstream sector of the oil and gas industries, while the remaining portion in the downstream one.

He said Iran welcomes participation of foreign partners in its oil, gas, petrochemical and refining projects.

"In case of demand, we are ready for cooperation with them (foreign companies) and getting them involved (in the business)," announced Mirkazemi.

The Minister then said Iran will in the years ahead give the priority in its oil and gas fields’ expansion plan to expansion of common zones.

The Oil Ministry is determined to emphasize protective production from the oil and gas fields in the years to come and energy strategy compilation is on the agenda.

The expo, opened on the 101st anniversary of oil exploration in Iran, is of significance for 10 percent rise in number of Iranian and foreign participants.

Some 435 well-reputed foreign and 907 Iranian companies and enterprises active in oil, gas, and petrochemicals industries showcased their businesses in 27 halls on 73,000 square meters of lands in the five-day exhibition.

Iran’s First Vice-President Mohammad-Reza Rahimi said that oil is the key to victory of Muslims in the Middle East.

Addressing the opening ceremony of the 15th Oil Show, Rahimi said: "Regarding geopolitical standpoint of the Middle East and location of giant oil reserves in three (Middle Eastern and Muslim) countries of Iran, Iraq and Saudi Arabia (it can be concluded that) God has placed oil as the key to victory of Muslims in the Middle East. So, oil is the most crucial and political commodity in today’s world,"

The official ruled out claims that petrodollars are the sole factor of Iran’s economic illness and economic non-vibrancy, saying, "Excessive reliance on oil revenues and lack of proper planning have caused the backwardness. We should wait to diversify the country’s income by expanding non-oil exports."

Hussein Porsun, Oil Exhibition Director

He said that in the years to come, Iran is determined to draw plans and policies which would prompt jump in the non-oil exports so that they supersede oil exports. He noted that Iran contains 11 percent of the world crude reserves and 16 percent natural gas reserves.

"Standing as OPEC’s second major producer, world’s second gas producer, and the region’s first crude refining and petrochemical producer are the top goals of the Oil Ministry this year," said Rahimi.

Rahimi went on to say that by 2025, about $500 billion need to be invested in Iran’s oil, gas and petrochemicals industries. He said $75 billion cash will be put at the disposal of authoritative organs for oil, gas and petrochemicals development in the 5th Five-Year Economic Development Plan (2010-15).

Rahimi voiced displeasure with domestic energy consumption exceeding the production three-fold, saying high and uneconomical level of energy consumption, economic structures, change of the energy consumption patterns, energy-intensive industries and failure to draw up energy consumption schemes are among the most important challenges facing Iran’s industrial development.

He predicted 302 percent increase in energy consumption in Iran, saying, "Presently, Iran is one of the world’s top energy consumers to the extent that energy consumption in the country exceeds three-fold that of world’s consumption on the average. Continuation of the status quo is alarming."

Rahimi, who is member of the working group comprising special presidential envoys in oil affairs, said, "We plan to guarantee further development of various oil, gas, refinancing and petrochemical industries by putting oil industry private bank at an initial capital of 2,000 billion rials."

To push up downstream oil industry products’ level, the products with high value-added should supersede oil and gas sales, he added.