Oil Minister Gholamhossein Nozari said investment in oil producing countries is the only way to guarantee energy security for consumers.
“If oil consuming countries want continued oil production and supply, they should pave the way for investment in the oil-rich countries and avoid double standards,“ Nozari told IRNA at an energy conference in London on Friday.
Nozari arrived in London after attending OPEC’s ministerial meeting in Algeria. The London meeting was first called by British Prime Minister Gordon Brown at an emergency Jeddah summit in June, when oil prices were spiraling toward $150 a barrel.

Oil markets are facing turmoil over the past six months with prices dipping below $40 from a high of $147.

Turmoil
However, oil markets are currently facing turmoil over the past six months with prices dipping below $40 from a high of $147.
Oil prices were dismal, with the New York contract price dipping below $34 a barrel, as weak global demand weighed on the market.
The contract for New York’s light sweet crude for delivery in January closed at $33.87 a barrel, down $2.35 from Thursday’s closing price. The contract dived to an intraday low of $32.40, a level last seen on February 9, 2004.
The New York contract for delivery in February, which becomes the market reference beginning Monday, finished 69 cents higher at $42.36. In London, Brent North Sea oil for February delivery rose 64 cents to settle at $44.00.
Iran, a regular fuel oil exporter, will halt spot exports in the first-quarter 2009, as it looks to meet domestic demand for power generation during winter.
The National Iranian Oil Company (NIOC), which typically exports around three to four fuel oil cargoes monthly between January and March, will offer spot cargoes only if domestic requirements ease.
“We cannot offer spot cargoes because we have to manage our requirements for power generation in Iran during the winter,“ a source familiar with the fuel oil export program said. “We will continue to meet our agreements on our term contracts, and will only consider spot sales if the winter is not severe and the requirement for domestic power generation is less.“
The premium for the 280-centistoke cargoes from Iran are forecast to jump by as much as $4 a ton to $20, on a cost-and-freight South China basis, up from current levels of about $16 a ton, traders said.

Export Cutback
Last winter, Iran was forced to cut back fuel oil exports as the country suffered one of its worst winters, amid disruptions to its natural gas supply, forcing it to burn the residual fuel at power plants throughout the country.
Stockpiles from the Middle East will also decline. Saudi Aramco, the world’s top oil exporter, plans to halt exports of term fuel oil in the first quarter as it retains supply to meet growing requirements from domestic utilities, traders said.
Both Iran and Saudi Arabia have recently joined Kuwait in burning growing volumes of fuel oil for power generation and water desalination as domestic gas supplies tighten, consulting firm PFC Energy said.
Fuel oil from Iran is typically purchased as a refinery feedstock in China, while in the Middle East it is bought for its low-density specifications and used as a blending component. Fuel oil imports into China rose 1.17 million tons in November, up from 875,000 tons in October.
Small and mid-sized refineries in China were operating at around 22 percent of capacity in early December, up from 12-15 percent in late November. These independent refineries, also known as teapots, account for a fifth of the country’s total refining capacity, and process straight-run fuel oil into industrial grade diesel and low-octane gasoline.
Reflecting the pick-up in Chinese demand and cut in exports from Iran and Saudi Arabia, the prompt January 180-centistoke (cst) crack, or the fuel oil discount to Middle East Dubai benchmark crude, strengthened early last week to an intraday high of minus $4.53 a barrel--its highest since Oct. 10 when it traded at minus $4.04 a barrel.
On Thursday, the fuel oil discount was trading at minus $6.50 a barrel. This compares with the year-low of minus $30.00 a barrel reached on June 10. The intermonth spread for Asia fuel oil swaps also flipped backward last Friday, after two months of contango, trading at $1.50 a ton, compared with minus $1.50 per ton a week ago.
“The market continues to be well-supported, at least in the medium term, because of the loss of supply from key exporters in the Middle East,“ an Asian-based fuel oil trader said. “And with outright prices pulling the Chinese back into the market, of course the market overall is going to be well supported.“

A gathering of major gas exporting countries, including Iran and Russia, is scheduled for next week in Moscow, according to Deputy Russian Energy Minister.
Anatoli Yanovski added at a press conference in Moscow on Friday, “The energy ministers of major gas exporting countries and the head of Russia’s Gazprom Company are ready to attend the international economic event.“
According to ISNA, several gas exporting countries, including Algeria, Venezuela, Qatar, Iran, Egypt, Libya and Norway, have accepted the invitation to attend. The deputy Russian Energy Minister added that the participation of delegations from Nigeria, Malaysia and the United Arab Emirates at the Moscow gathering is not finalized yet.
“The most important objective of the gathering, scheduled to be held next week, is to survey the ground for cooperation among gas exporting countries in future,“ he said.
The Russian official said comparing the proposed organization of gas exporting countries with OPEC is incorrect due to the different objectives of the two organizations.
“Selling gas differs greatly with selling oil, partly because allocation of ratios of gas sales is impossible,“ he said.
“The charter of the organization of gas exporting countries would be discussed at the ministerial gathering and its secretary-general would be appointed for a period of at least one year during the gathering.“
Alexander Medvedev, the deputy head of Gazprom, also said at the press conference that the new organization would engage in exchange of information about the international gas markets.
He expressed hope the gas organization would provide responses to challenges in the energy market, including problems related to production and pricing.
On the probable location of the headquarters of the gas organization, Medvedev said, “We hope the countries concerned would agree on Saint Petersburg.“
Iran, the Russian Federation and Qatar agreed on the general idea of establishing an organization of gas exporting countries at a meeting in Tehran in 2006.

With a total reservoir capacity of 509 million cubic meters, 24 dams will soon become operational across Khorasan Razavi province.
Morteza Hosseini, managing director of Khorasan Razavi Regional Water Company, made the remark while addressing a water resources conference in Mashhad on Thursday, IRNA wrote.
Referring to the government’s focus on the industrial sector, Hosseini stated that dams, including Doosti, Tabarak, Sangerd, Zavin, Dahan Qaleh and Kamaistan, with a total reservoir capacity of 421 million cubic meters, have come on stream across the province.
“Since the start of the current Iranian year on March 21, 2008, credits worth 1.264 billion rials have been allocated to the provincial development projects by the Khorasan Razavi Regional Water Company,“ Hosseini said.

Economy Minister Shamseddin Hosseini said on Friday President Mahmoud Ahmadinejad’s government is determined to present the bill on targeted subsidies to the parliament soon.
According to IRNA, Hosseini made the comment in response to a reporter who asked him whether the government would present the bill to the parliament, in view of conflicting views expressed about it.
On President Ahmadinejad’s order to suspend the implementation of the Value-Added Tax for one year, the minister said, “Upon a written order by President Ahmadinejad, the respective plan was prepared and presented to the Cabinet.“
On cooperation between the Economy Ministry and the Central Bank to lower the inflation rate, Hosseini said, “The decision was made by the government and the country’s Economic Commission and Cabinet members have been commissioned to cooperate and take a decision in this respect.“

Iran and Armenia will build a pipeline to transfer oil from Tabriz to Eraskh in 2009.

Iran and Armenia will start building an oil pipeline in 2009 which starts from the Iranian city of Tabriz and continues to the Armenian city of Eraskh, a senior Iranian official said. The remarks were made during a meeting between Iranian Foreign Minister Manouchehr Mottaki and visiting Armenian Minister of Energy and Natural Resources Armen Movsisian.
From Tabriz Oil Refinery, Armenia will receive benzene and diesel, and for facilitating business activities, Armenia will open a consulate in Tabriz. The Ministers also discussed the possibility of building a hydro electro power station on Aras River, Fars News Agency reported.

Oil Refinery
Earlier Movsisian stated that Iran, Armenia and Russia had planned to construct an oil refinery in the city of Eraskh. However, Russia later withdrew from the project, effectively frustrating it.
Iranian Oil Minister Gholamhossein Nozari said that a ministry delegation will travel to Turkey to discuss construction of a pipeline to take Iran’s gas to Europe. Nozari said Iran and Turkey are aiming to set up a joint venture for the construction of two pipelines transporting natural gas from the Islamic Republic to the Turkish and Greek borders.
The joint venture was discussed as Nozari--en route to attend a crucial meeting of the Organization of Petroleum Exporting Countries (OPEC)--made a stop off in Ankara and met with his Turkish counterpart Hilmi Guler last Tuesday.
The two ministers met in an effort to advance a broader memorandum of understanding, signed in November, which includes Turkish participation in developing three phases of the South Pars gas field.
Nozari said that an oil ministry delegation will travel to Turkey by the end of next week to discuss construction of the pipeline and other details included in the agreement.
Responding to a question on the level of Iranian natural gas exports to Europe, he said, “Within the framework of the agreement, it’s been decided to guarantee the company constructing the pipeline, from the Iranian border to the Greek border, for delivery of 30 to 35 million cubic meters of gas a day.“

Peace Pipeline
Meantime, Iran and India have resumed negotiation over the long-awaited 7.4 billion dollar Iran-Pakistan-India (IPI) gas pipeline project in New Delhi.
Iranian Deputy Foreign Minister Mohammad Mehdi Akhoundzadeh met with Indian Foreign Minister Pranab Mukherjee to discuss ways to break the deadlock over the giant project also called the ’peace pipeline’.
Tensions between India and Pakistan have hobbled talks on the peace pipeline, based on which Iran intends to supply gas to the two nuclear power rivals after laying a 2,600-kilometer pipeline. The IPI gas pipeline project has been delayed by repeated disputes over prices and transit fees.
The pipeline is expected to initially transfer 60 million cubic meters of natural gas per day from Iran to Pakistan and India. Earlier, both sides decided to set up a trilateral ministerial mechanism to resolve obstacles facing the project.
Under the mechanism, the meeting between India, Pakistan and Iran will be held to address different issues related to the plan. The decision, taken after a request from India to Iran, reflects New Delhi’s willingness to go ahead with the project to fulfill its energy needs.
In June, Pakistan Foreign Minister Shah Mahmood Qureshi, who met Indian Oil Minister Murli Deora, said that the two sides have resolved all bilateral issues.

Economic experts have raised doubts about the prospect of privatizing Iranian banks as the deepening financial crisis spreads globally.
According to a report in the Persian daily ’Sarmayeh’, economists have suggested that because the global financial crisis is pushing private banks into the hands of governments around the world, the time is not ripe for Iran to privatize its state-owned banks.
“Privatization of banks in the current situation during which other countries are debating about nationalization is an unacceptable decision,“ Houshang Khastouei, a banking expert told the daily.
In September, the long-awaited privatization law came into force in a bid to invigorate the private sector. Iranian economic life has been dominated by a centralized economy and major government corporations for nearly three decades.
Currently, industries such as mining, rail transport, aviation, insurance and banking are being privatized in compliance with Article 44 of the Iranian Constitution.
Khastouei also questioned a decree by the Central Bank of Iran (CBI) that orders private banks to cut interest rate in coordination with state-owned banks. Last Sunday, the Tehran Stock Exchange (TSE) suffered an unprecedented plunge, falling to its lowest level in five years.
The TSE index (Tepix) fell to 8,974 upon opening, dropping below the symbolic 9,000 points for the first time since 2003.
The government holds 35 percent of shares listed on the TSE, while securing another 40 percent through pension funds and investment companies. Foreign investment accounts for 2 percent of the stock market.
“The current atmosphere that is dominating the country’s economy is not a good condition, and banks--based on the amount of deposits--are not in a suitable position yet,“ said Mosafa Vallahi, an expert in investment markets.
He noted that shares in private banks plunged in recent weeks and insisted that privatization of state-owned banks in the current financial climate is indeed uncalled for.
Iran’s Privatization Organization (IPO) says it will sell five percent of state-owned banks in the stock market this week.

Deputy director of Kish Free Trade Zone Organization (KFTZO) said direct flight services will be launched between Milan and Kish Island in February 2009.
Mehr News Agency quoted Hamidreza Tahmasbpour as saying that the flight route is to be established based on an agreement signed last week by KFTZO and Italy’s Eurofly airlines. The new service will help promote Iran-Italy tourism ties and facilitate the travel of Europeans to Kish as the first tourist destination in Iran.
“The two sides have signed an initial agreement,“ said the official, adding that the flight service will be offered once a week on Thursdays for a period of four months.
Eurofly is a privately owned airline based in Milan, listed on MTA Stock Exchange and controlled by Meridiana Airline. It is Italy’s leading carrier in leisure flights market and mainly operates international, medium and long haul, point-to-point flights.

Road construction projects have more than doubled in the past three years, said the First Vice President Parviz Davoudi.
Speaking at the Third National Seminar on Transportation in Tehran, Davoudi said the number of road construction projects is expected to increase in the coming months, Inn.ir reported.
According to the official, more than one million people work in the transportation sector, accounting for 9 percent of gross domestic product (GDP). “If we can create one percent growth per annum in the sector, GDP will rise by 2.2 percent.“
Iran has one of the highest rates of road accidents in the world, with an average of 200,000 reported annually in which around 26,000 people are killed and 87,000 injured.
The government has already begun improving road safety by building standard roads and safer cars.

Members of the Bolivarian Alternative for the Americas (ALBA) held a trade fair in Tehran aimed at boosting trade cooperation with Iran.
ALBA was first launched in 2005 by Venezuela as a counterpunch to the Bush administration’s launch of the Free Trade Area of the Americas (FTAA). Some 81 companies from Venezuela, the Dominican Republic, Ecuador, Cuba, Bolivia, Honduras and Nicaragua participated in the four-day event.
According to ISNA, the exhibition was launched as a symbolic objection to the illegal US sanctions imposed against Tehran over its civilian nuclear activities.
On the sidelines of the event, the commerce ministers of Iran, Venezuela and Nicaragua held a meeting during which they called for expansion of trade ties and independent regional cooperation.
Iranian Minister of Commerce Massoud Mirkazemi said ALBA provides a perfect model for regional development and could allow Tehran to launch additional industrial and developmental projects in Latin America.
“Today we seek to develop an economic development model and despite the pressures and sanctions, the Islamic Republic of Iran enjoys great capacities,“ he added.
Meanwhile, Minister of Industries and Mines Ali Akbar Mehrabian said on Thursday that Iran pays great attention to the expansion of ties with Latin American countries.
He made the remark during separate meetings with visiting Venezuelan Minister of People’s Power for Light Industry and Commerce William Contreras and Nicaraguan Minister of Development, Industry and Commerce Orlando Solorzano.
Referring to the implementation of mineral and industrial projects by Iranian experts in Latin American countries, Mehrabian said Iran has the capacity to increase its ties.
He referred to the exhibition of industrial and commercial products from the ALBA member states and added that the event indicates the strong will of all sides to expand ties.
The minister also stressed Iran to have extensive cooperation with the ALBA member states.
Contreras, for his part, welcomed the development of mutual ties with Tehran, adding that broader economic ties with Tehran is high on the agenda of the Venezuelan government.
Solorzano similarly called for promotion of industrial ties between Iran and Nicaragua.
ALBA exhibition opened in Tehran on Wednesday. ALBA is an international cooperation organization based upon the idea of social, political and economic integration among the countries of Latin America and the Caribbean.
ALBA currently consists of Venezuela, Cuba, Ecuador, Nicaragua, Bolivia and Dominica. Some 86 companies are representing the six countries in Tehran’s exhibition, which will continue until December 22.

Iran and Syria plan to hold their fourth joint sea transport commission meeting in the Syrian capital, Damascus, on December 23-25.
Iran’s economic attachˇ in Damascus, Morteza Mortazavi, who made the announcement, said Managing Director of Iran’s Ports and Shipping Organization Ali Taheri and his Syrian counterpart will co-chair the meeting, IRIB reported.
According to Mortazavi, the participants will focus on increasing cooperation in ports construction and shipping activities.
The commission convenes twice a year on a rotating basis both in Tehran and Damascus.
Iran and Syria have signed economic compacts in different sectors, including banking, insurance, telecommunications and housing construction.
Iran opened a cement plant and a car factory in Damascus in December 2007.
Syria and Iran began establishing closer ties decades ago, but the real strides have been recent. Syria has signed expanded economic agreements with Iran covering everything from telecommunication projects to higher education.

Asian Development Bank (ADB) and Pakistan signed agreements on Wednesday for three program loans totaling 300 billion rials, IRNA reported.
The agreements were signed to support economic growth, poverty reduction and improved health of women and infants in the Balochistan, Sindh and Punjab regions.
The documents were signed by Secretary Economic Affairs Division Farrakh Qayyum and Country Director ADB Rune Stroem on behalf of government of Pakistan and ADB.
Representatives of provincial governments of Balochistan, Punjab and Sindh also signed their own agreements with ADB.
Out of the 300 billion rials, one hundred billion is dedicated to the Punjab Millennium Development Goals (MDG) Program, one hundred billion to the Second Balochistan Resource Management Program, and another one hundred billion to the Sindh Growth and Rural Revitalization Program.
The Balochistan and Sindh programs will also receive technical assistance grants, based on mutual agreements.
Punjab, Pakistan’s most populated province, is facing massive challenges in providing health care services to a growing population. The program is expected to contribute towards improving health facilities for women and infants.
The main objective of the program is to improve health delivery services, create better health management systems, focus more on preventive healthcare, improve primary, secondary and tertiary healthcare, establish community hospitals and trauma centers, target the poor, women and children and enhance capacity for planning, costing and budgeting through Medium Term Budgetary Framework exercises.