Iran's Economy News

[ito]

I hope..

If India and China disregard the idiotic West sanctions.

India and China have kept relations with Iran in spite of west sanctions, which many Indians feel are unnecessary and cruel towards Iranians. 10% of India's oil imports come from Iran while India is one of the largest export partner of Iran.

The relations between India and Iran are always best but for one incidence 5 years ago when India under Congress government went with west on a resolution against Iran nuclear program. Since then I am sure India learnt its folly. In recent times the relations between India and Iran are becoming better.

 

[Aramagedon]

India and China have kept relations with Iran in spite of west sanctions, which many Indians feel are unnecessary and cruel towards Iranians. 10% of India's oil imports come from Iran while India is one of the largest export partner of Iran.

The relations between India and Iran are always best but for one incidence 5 years ago when India under Congress government went with west on a resolution against Iran nuclear program. Since then I am sure India learnt its folly. In recent times the relations between India and Iran are becoming better.

India with 1.2 billion inhabitants and Iran as a developing country can make two super powers.

Meanwhile Iran and India always have had very good ties and close culture in past.

============================
Iran holds world's largest Gas Reserves

TheNational Iranian Gas Company (NIGC) in an announcementsaid the recoverable reserves of natural gas in Iran have increased to above 34 trillion cubic meters (tcm).

NIGC said this is about 1.4 tcm more than the reserves of Russia. The figure, which the company said had been provided by BP in its 2015 Statistical Review of World Energy, puts Iran ahead of Russia whose reserves stand at about 32.6 tcm for a second consecutive year.

Based on the BP report, Qatar with 24.5 tcm follows Iran and Russian in the third place in terms of collective gas reserves.

The report further adds that Iran’s gas production saw an increase of 5.2 percent in 2014 to reach a total of 172.6 bcm.

Iran is presently the world’s fourth largest producer of natural gas after the United States (758 bcm), Russia (578 bcm), and Qatar (177 bcm).

Iran’s exports of natural gas in 2014 stood at a total of 9.6 bcm of which about 8.9 bcm were exported to Turkey and some 0.7 bcm were delivered to Armenia and the Nakhchivan Republic through a gas-for-electricity swap scheme, NIGC added quoting BP figures.

Also, Iran’s imports for 2014 stood at 6.9 bcm from Turkmenistan and about 0.3 bcm from Azerbaijan.

Iran's Oil & Gas Productiona (1970 - 2030):

 

[Aramagedon]

Managing Director of Pasargad Oil Company said Iran stands in the first place in the Middle East and fourth in the world with regard to export of bitumen.

Speaking at the Bitumen International Conference here on Sunday, Mohsen Delaviz further remarked that at present there is over 100 million tons of world demand for bitumen of which Iran accounts for 4%.

Iran stands in the first place in the Middle Eat by exporting 2.3 million tons of bitumen per year, Delaviz said, adding that good plans have been made for strengthening Iran’s presence in the world markets.

Stressing that Iran’s bitumen has attracted world attention due to its high quality and fair price, the Pasargad Oil Company director said however despite satisfactory capacities the country has not been able to play its appropriate role in the world market.

He said his company’s policy is based on signing long-term contracts, adding that an agreement has been signed with Oman for the export of 50 thousand tons of bitumen and there are two other contracts for over 2 million tons one of which is related to a European country.

Delaviz noted that with the construction of proper infrastructure the tar production can be doubled annually, adding that now Iran’s bitumen is exported to over 60 world countries. He said with an increased capacity Iran can leave behind South Korea and stand in the first place in Asia.

 

[Aramagedon]

@scythian500

 

[Abii]

Iran needs American companies. Chinese and Indian companies don't have the technology to develop Iran's oil and gas industry to the level that's needed. Only American oil giants have the technology needed. Even India and China bring in American and European companies a lot of the times.

100 billion is no small sum. For that much cash, Iran needs to guarantee American companies a fair share of the profits. American companies won't touch the sector unless the sanctions are gone and they're promised a fair share of the profits, not just a predetermined sum for services rendered. When French and other EU oil companies were in Iran, they were being given a predetermined amount for services rendered. American companies don't operate on those terms, especially for technology that only they have. They will certainly ask for a share of the profits.

 

[Providence]

This is something which bodes well for Iran. Bitumen is a form of coal which has highest calorific value and emits lowest amount of pollutants (relatively).

Priced strategically, Iran can swiftly capture the coal markets of Australia.

Also, in South-Asia most countries like China and India predominantly use lignite which causes a lot of pollution per tonne of coal burnt.

 

[Serpentine]

Iran needs American companies. Chinese and Indian companies don't have the technology to develop Iran's oil and gas industry to the level that's needed. Only American oil giants have the technology needed. Even India and China bring in American and European companies a lot of the times.

100 billion is no small sum. For that much cash, Iran needs to guarantee American companies a fair share of the profits. American companies won't touch the sector unless the sanctions are gone and they're promised a fair share of the profits, not just a predetermined sum for services rendered. When French and other EU oil companies were in Iran, they were being given a predetermined amount for services rendered. American companies don't operate on those terms, especially for technology that only they have. They will certainly ask for a share of the profits.

I think if the deal is reached, US is going to keep its embargo on Iran, which means US companies can't invest more than a certain amount in Iran. This embargo exists since 1980.

That's pretty stupid though, it harms U.S more than Iran, because equivalent companies from Europe can always take their place.

 

[Abii]

I think if the deal is reached, US is going to keep its embargo on Iran, which means US companies can't invest more than a certain amount in Iran. This embargo exists since 1980.

That's pretty stupid though, it harms U.S more than Iran, because equivalent companies from Europe can always take their place.

Serpi jan, you're making about a thousand mistakes in your post.

Every single Western oil company is directly or indirectly working with another major oil company. Big oil is not Samsung vs. Apple. This cooperation means they all have subsidiaries in each other's countries. More importantly are the patents registered in the US. Total can have most of its patents registered in American courts.

There are daily joint ventures, take overs, buy-outs, sell-offs, patent enforcement etc...

Say Total comes back to Iran. For one, their hands are tied. They will do what they were doing a few years ago. Nothing revolutionary. They will produce some oil and take whatever they can. Iran needs modern infrastructure, refineries, new exploration techniques etc... We need Exxon Mobile, Conoco Phillips, Chevron, Shell Oil etc...

That brings me to the more important point: Iran's business environment. That guy in the video I posted touched on it at the end of the video. Iran's business environment routinely gets ranked as one of the worst in the world, alongside the likes of North Korea. With the excess supply in today's market, an excess supply that will be the story of oil for however long its got left on this earth, oil companies can pick and choose where to go and where to invest. The ROI in Iran is ridiculously low. Iran also doesn't release its land for development to foreign companies. All it does is write up an agreement and say you get X amount of cash for services rendered!!!! No other country does this. There's no incentive and on top of that the risk is very high in Iran compared to say, investing in Canada.

Look at Shell. Sure, it's technically a European company. Headquartered in Holland and incorporated in the UK. But it's a ridiculous notion to call it a European company, if you're looking at it through an Iranian definition of the phrase. Shell has in excess of 420 BILLION DOLLARS in revenue annually (100 billion more than Iran's annual GDP!!!). It operates in every square inch of the planet. From the arctic to the shit holes of Africa. But what it does in every country is vastly different. Shell will come to Iran, but it will have to ignore patents registered in the US and it certainly can't use any technology developed by the Shell Oil Company (Shell's American subsidiary) and Shell Canada. Plus, why would it do anything revolutionary without promise of profit sharing?

Unless however, under any new deal, American oil companies get some sort of exemption. I can't see how that would work in the US though. American courts will have a field day taking these companies to court over breach of sanctions every time some patented tech gets used in Iran.

So "equivalent companies from Europe" are not European really. Most of them operate in North America and they have their own North American subsidiaries. These subsidiaries register their own patents in these countries, develop technology and pay taxes. Different subsidiaries within the same company can of course cooperate with each other, but that would not be the case with Iran. Say they create a new subsidiary in Iran. That part of shell would have a hard time accessing patents, technology, funds and support. So the notion that there are "equivalent companies from Europe" is inherently wrong.

 

[[Bregs]]

Real potential of Iran will be unleashed once sanctions are lifted and nuclear deal is clinched

 

[Abii]

Real potential of Iran will be unleashed once sanctions are lifted and nuclear deal is clinched

That's true for every country. A country with sanctions can't "unleash" its true potential. So thanks for the nice words, but it doesn't mean much. Iran needs tough love these days.

 

[Aramagedon]

The World Steel Association has named the Islamic Republic of Iran as the world’s second biggest producer of direct reduced iron (DRI) in the first two months of the year.

According to the latest figures released by the international trade body, Iran produced 1.867 million tons of direct reduced iron in the two-month period. Iranian steel mills produced 801,000 tons of DRI in January, and 1,066 million tons more in the following month.

India stood on the top of the list with a production of 2.496 million tons of DRI in the first two months of the year. Asia's third-largest economy produced 1.311 million tons of direct reduced iron in January, and 1.185 million tons in February.

Direct-reduced iron, also called sponge iron, is produced from direct reduction of iron ore (in the form of lumps, pellets or fines) by a reducing gas produced from natural gas or coal. This process of reducing the iron ore in solid form by reducing gases is called direct reduction.

Iran plans to increase its annual steel output to 55 million tons by the end of the Fifth Five-Year Development Plan (March 2010-March 2015).

Iran is reportedly the biggest steel producer in the Middle East and North Africa. The country’s main steel mills are located in Isfahan and Khuzestan provinces.

Iran's major raw steel producers are the Mobarakeh Steel Mill, with approximately 47 percent of the market share, the Khuzestan Steel Company, with about 23 percent of the market share, the Isfahan Iron Smelting Complex, with a market share of 20 percent, and the Iran National Steel Industries Group, with approximately 10 percent of the market share.


PressTV-Iran 2nd biggest DRI producer in world

Also Iran is world's 9th biggest producer of Iron ore

List of countries by iron ore production - Wikipedia, the free encyclopedia

Great Achievement indeed

 

[Aramagedon]

Iran to flood Asian oil markets with 500K bbl/d

The implications are strategic, geopolitical and geo-economic in nature.
Kloza said Iran will add even more oil to the markets in 2016 as it improves its oil industry’s infrastructure, which has suffered under the sanctions.

Both sides of the negotiating table are hailing the agreement as a success with Donald Tusk, the President of the European Council, describing it as “agame changer” and if fully implemented “a turning point in relations between Iran and the global community, paving the way to new avenues of cooperation between the EU and Iran“. This comes with the understanding that none of the sanctionsrelief measures will take immediate effect and when they do, there could be some unforeseen geo-political and geo-economic factors in play.

Iran and major world powers on Tuesday reached a deal to monitor Tehran’snuclear programme, which the West says will curb its efforts to build a nuclearbomb.

The details of how sanctions will be lifted is not yet known. Finally, the USA in concluding the deal has not foregone anyof options it now holds to move against Iran. As part of the deal, Tehran will get relief from global sanctions, which could lead to a resurgence in its economy. The aim is to have this done by the end of this year.

Additionally, at some stage, talks on the $4-billion Iran-India gas pipeline could restart.

There is also appreciable attention on Iran’s hydrocarbons; the world’s fourth-largest oil reserve and second-largest gas reserve.

Iran also will be able to access more than $100 billion in payments for its oil exports that are now frozen by USA sanctions in overseas foreign currency escrow accounts.

“Oil’s failure to respond positively to the (US) stocks data suggests that the prospect of additional oil supply from Iran is still weighing on the sentiment”, said analyst Fawad Razaqzada at trading site Forex.com.

Could Iran set up cost efficient LNG production?

The new agreement will let Iran add about 500,000 barrels a day by mid-2016, and 500,000 a day more by the end of next year, Commerzbank AG estimates. And all will gain as the increasingly anxious Saudis look to diversify away from deep dependence on the United States for defense supplies and markets for Saudi oil exports. It is assessed that the Iraniancrude oil inflow coupled with USA shale oil will at the least stabilise crude oil prices around the current levels if not depress them further. The subdued crude oil prices have afforded the 2015-16 budget an estimated subsidy bill at Rs.2.43 trillion, around 9% less than the revised estimate of Rs.2.66 trillion for 2014-15. “Our country occupies less than one percent in this market”, he said.

TEHERAN • Foreign companies are eager to exploit the potential of Iran’s long-isolated economy following a landmark nuclear deal, but experts say doing business in the Islamic republic will remain challenging. The facilities at Mangaluru, Visakhapatnam and Padur together offer just 11 days’ capacity. The country has also agreed to invasive inspections by the worldwide Atomic Energy Agency (IAEA).

Gross under-recoveries have more than halved since FY13 on falling crude prices, de-regulation of diesel and petrol and the implementation of the direct benefits transfer scheme. Sourcing of hydrocarbons, under ideal conditions, is a commercial (costs and risks) decision at the refinery level and not a foreign policy decision. That’s enough to supply Chinafor 40 years.

Iran also has the world’s largest reserves of gas and was the No. 4 producer previous year.

Oil prices were little changed Friday amid the stronger dollar and concerns that the historic Iran nuclear deal could unleash more Iranian crude on the global market. On the other hand a gas pipeline can make India significantly dependent on Iran for its natural gas requirements.

Iran to flood Asian oil markets with 500K bbl/d

Last updated: Monday 20 July 2015

 

[Moon]

Iran to flood Asian oil markets with 500K bbl/d

The implications are strategic, geopolitical and geo-economic in nature.
Kloza said Iran will add even more oil to the markets in 2016 as it improves its oil industry’s infrastructure, which has suffered under the sanctions.

Both sides of the negotiating table are hailing the agreement as a success with Donald Tusk, the President of the European Council, describing it as “agame changer” and if fully implemented “a turning point in relations between Iran and the global community, paving the way to new avenues of cooperation between the EU and Iran“. This comes with the understanding that none of the sanctionsrelief measures will take immediate effect and when they do, there could be some unforeseen geo-political and geo-economic factors in play.

Iran and major world powers on Tuesday reached a deal to monitor Tehran’snuclear programme, which the West says will curb its efforts to build a nuclearbomb.

The details of how sanctions will be lifted is not yet known. Finally, the USA in concluding the deal has not foregone anyof options it now holds to move against Iran. As part of the deal, Tehran will get relief from global sanctions, which could lead to a resurgence in its economy. The aim is to have this done by the end of this year.

Additionally, at some stage, talks on the $4-billion Iran-India gas pipeline could restart.

There is also appreciable attention on Iran’s hydrocarbons; the world’s fourth-largest oil reserve and second-largest gas reserve.

Iran also will be able to access more than $100 billion in payments for its oil exports that are now frozen by USA sanctions in overseas foreign currency escrow accounts.

“Oil’s failure to respond positively to the (US) stocks data suggests that the prospect of additional oil supply from Iran is still weighing on the sentiment”, said analyst Fawad Razaqzada at trading site Forex.com.

Could Iran set up cost efficient LNG production?

The new agreement will let Iran add about 500,000 barrels a day by mid-2016, and 500,000 a day more by the end of next year, Commerzbank AG estimates. And all will gain as the increasingly anxious Saudis look to diversify away from deep dependence on the United States for defense supplies and markets for Saudi oil exports. It is assessed that the Iraniancrude oil inflow coupled with USA shale oil will at the least stabilise crude oil prices around the current levels if not depress them further. The subdued crude oil prices have afforded the 2015-16 budget an estimated subsidy bill at Rs.2.43 trillion, around 9% less than the revised estimate of Rs.2.66 trillion for 2014-15. “Our country occupies less than one percent in this market”, he said.

TEHERAN • Foreign companies are eager to exploit the potential of Iran’s long-isolated economy following a landmark nuclear deal, but experts say doing business in the Islamic republic will remain challenging. The facilities at Mangaluru, Visakhapatnam and Padur together offer just 11 days’ capacity. The country has also agreed to invasive inspections by the worldwide Atomic Energy Agency (IAEA).

Gross under-recoveries have more than halved since FY13 on falling crude prices, de-regulation of diesel and petrol and the implementation of the direct benefits transfer scheme. Sourcing of hydrocarbons, under ideal conditions, is a commercial (costs and risks) decision at the refinery level and not a foreign policy decision. That’s enough to supply Chinafor 40 years.

Iran also has the world’s largest reserves of gas and was the No. 4 producer previous year.

Oil prices were little changed Friday amid the stronger dollar and concerns that the historic Iran nuclear deal could unleash more Iranian crude on the global market. On the other hand a gas pipeline can make India significantly dependent on Iran for its natural gas requirements.

Iran to flood Asian oil markets with 500K bbl/d

Last updated: Monday 20 July 2015

That good news for us.

 

[Aramagedon]

Monday, July 20, 2015

Vienna to host Iran-EU economic conference this week
Tehran Times Economic Desk

TEHRAN - The Iran-EU conference on trade and investment, which will be the first post-sanction economic conference between Iran and the European Union, is scheduled to be held in the Austrian capital Vienna from July 23 to 24.

The conference will discuss the opportunities for Iran-EU economic cooperation after removal of the sanctions by the final agreement which was reached on July 24 between Iran and the P5+1 group of countries on Iran’s nuclear program, according to the Mehr News Agency.

Iranian Industry, Mining, and Trade Minister Mohammad Reza Ne’matzadeh will lead the Iranian delegation to the conference. The delegation will consist of representatives of economic, financial, banking and foreign investment sectors as well as executives from oil, gas, petrochemicals, mining, automotive and other industries, according to the official website of the conference.

The event will be held in cooperation with the Austrian Federal Economic Chamber and Trade Promotion Organization of Iran (TPOI) as well as Iran’s joint chambers of commerce with Germany, France and Britain.

The value of trade between Iran and the European Union member states reached €2.407 billion in the first four months of 2015, a four percent rise from €2.201 billion in the same period of time in 2014, according to the EU statistics agency Eurostat.

The value of trade between Iran and the EU countries rose 20 percent in 2014 compared to its previous year.

tehran times : Vienna to host Iran-EU economic conference this week

 

[Aramagedon]

IKCO to Establish Production Line in Oman

TEHRAN (FNA)- Oman has requested Iran Khodro Industrial Group to establish a car production site there through Muscat's financing, IKCO’s CEO and President Hashem Yekee zare said after a meeting with the Manager of Oman’s free trade zone of Duqm Yahya al-Jaberi.
During the meeting, IKCO’s CEO referred to the historic relations between Iran and Oman adding that the site can provide Iran Khodro with an easy access to markets deep in eastern and northern regions of Africa.

He also expressed hope that the site could be established as soon as possible with the financial support of Oman’s Development Fund.

Yekke Zare emphasized that Oman project begins with the establishment of a production line which will develop further into a production site after a while.

He referred to the industrial strategy of Iran Khodro developed by Iran’s Ministry of Industries and Mines saying:” Based on the strategy the number of our products would reach to three million vehicles for national and international markets.”

For his part, al-Jaberi praised the high technologies of Iran Khodro saying the commercial relations between Iran and Oman need to expand further like their political ties.

Al-Jaberi said Oman’s free trade zone of Duqm enjoys a high capacity for exporting cars to India, Pakistan, Bangladesh and eastern Asia.

“IKCO’s products facilitate our access to Asian markets. On the other hand, Dqum enjoys some appropriate grounds for car production,” he said.

Iran Khodro Deputy for Export and International Affairs, Saeed Tafazzoli also held talks with al-Jaberi. During the talks, Tafazzoli referred to the last joint economic meeting between Iran and Oman in December saying:”During the meeting we concluded to expand our projects in Oman.”

“Several months ago, the heads of Oman’s Development and Investment Fund visited Iran to discuss the possibility of establishment a joint venture to produce IKCO vehicles in Oman,” he said.

Tafazzoli also noted that IKCO would provide the site with engineering services and spare parts. According to him, the site establishment would be financed by Oman’s government and Development Fund. The site is expected to produce 15 thousand vehicles each year