Iran

Budget set as President invites FDI


Published

Iran’s Parliament has passed the country’s equivalent to the 2014 national Budget at 7.93-quadrillion-rial (£194.4 billion; $320 billion). The Iranian calendar year 1393 starts on 21st March 2014.

The Tehran Times reports that the budget is an 8.4% increase on last year and is based on $100 per barrel oil price at an exchange rate of 26,000 Rials to the US Dollar. The budget expects crude oil production to be at 3.3 million barrels per day and exports to rise to 1.5 million barrels per day.

Meanwhile President Hassan Rouhani has called for the “constructive interaction with foreign companies and facilitating their presence in the Iranian market”.

The full press release on the president’s remarks as published on the FARS news agency website are as follows:

“Rouhani Calls for Presence of Foreign Companies in Iran’s Market, Projects

TEHRAN (FNA)- Iranian President Hassan Rouhani once again underlined his administration’s readiness for constructive interaction with foreign companies and facilitating their presence in the Iranian market.

“The government is ready to cooperate with all those countries and companies that are interested to participate in economic activities of Iran with its abundant rich resources and educated young people,” President Rouhani said, addressing foreign ambassadors and heads of diplomatic missions in Tehran.

The president underlined that Iran has vast economic potential and capacity, and said, “The Islamic Republic of Iran can become one of the superior countries in economy.”

“We are prepared to witness better conditions in the world through constructive interaction with other countries,” President Rouhani said.

Earlier this week, Iran’s Deputy Oil Minister for International Affairs and Trading Ali Majedi invited French energy companies to invest in Iran’s hydrocarbon fields.

Majedi made the remarks in his address to a delegation of more than 100 French businessmen in Tehran.

“It is a sincere hope that this meeting will make a new phase in deepening and broadening of economic and commercial relations between Iran and France specifically in the field of oil and gas,” said the official.

He underscored “longstanding relations between Iranian and French companies in the field of oil and gas industries” and said France’s energy giant Total used to operate “many projects” in Iran.

“I would avail this occasion to invite the highly reputable French companies for collaboration,” said Majedi.

He said Europe will have to turn to the Middle East in the future to meet its growing energy needs.

“Additionally, Europe’s energy deficit remains roughly steady for oil and coal but grows up by more than 60 percent for natural gas from 26 bcf per day in 2010 to 42 bcf in 2013,” he said.

Majedi said Iran is a good source of energy supply in the light “holding more than 11 percent of the world’s oil reserves, as the 4th world oil producer and holding 17 percent of the world’s gas reserves.”

He said that Iran feels obliged to accomplish “its duty as an energy supplier and provide sustainable and secure energy to the world.”

Majedi also said Iran’s Petroleum Ministry is determined to “facilitate the conditions to encourage international companies to participate in oil and gas projects of the country.”

“Undoubtedly, a secure energy supply relies on the independency of economic sector from politics, based on an effective, sustainable and dynamic structure,” he said.”

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