TEHRAN (Iran News) – Oil Minister Javad Owji has predicted that there will be good news related to cooperation with Russia in the energy sector as the Islamic Republic pursues a policy of neutralizing illegal U.S. sanctions through enhancing ties with friendly countries.
“In the energy sector, we are holding negotiations with the Russian side, and we will announce [their results] whenever the talks are concluded. I think there will be good news in the energy cooperation between Iran and Russia,” he told reporters on Saturday.
Asked about the 25-year comprehensive strategic partnership agreement between Iran and China, Owji said that under the bilateral deal, accords must be signed in different fields, among them the oil and gas sector, and that their news will be transmitted accordingly.
He also said that the price of oil between 80 to 90 dollars per barrel would be favorable for both consumers and producers.
Owji said: “Last week, good agreements were signed with Turkmenistan on the export of technical services and petroleum products, which we hope will be implemented soon.”
He announced that a $4 billion consortium would be formed to support petro-refinery projects.
Asked the desired level of oil prices to meet the interests of producers and consumers, given the Brent price, which has reached $86 per barrel, the Minister of Petroleum said: “In my opinion, and according to experts who have worked in this field, the price is of between 80 to 90 dollars [per barrel] is desirable; OPEC members also favor this price.”
The Russian energy minister had recently said that prices above $100/b were to the detriment of both producers and consumers. Regarding this, Mr. Owji added: “The members of OPEC+ would favor the price range I just said.”
Regarding gas exports to Turkey, Owji said: “The contract for gas exports to Turkey will expire in 2026, and the issue of extending Iran’s gas exports to Turkey is one of the programs on the agenda of the Ministry of Petroleum and the National Iranian Gas Company. Experts from the Turkish company Botas and the National Iranian Gas Company will hold talks this week.”
Announcing that good decisions have been made regarding gas exports to Oman, the Oil Minister said: “We have started negotiations, and we hope that it will lead to a contract for export of gas to Oman for an LNG unit in this country.”
In response to a question about the president’s visit to Russia, he stated: “Good achievements and good news will be announced in due course. As you know, the Ministry of Petroleum is in charge of the Iran-Russia Joint Commission and, God willing, good news with Russia will be announced in due course.”
Regarding implementation of the 25-year agreement with China, the Oil Minister stated: “We have not yet entered into the contract phase in the field of oil. God willing, we will announce any contract that is finalized.”
The Oil Minister considered the support and financing of the country’s development, economic and vital projects as one of the main missions of the banks, and said: “The Oil Ministry has other new projects on the agenda in the development of oil and gas fields, transmission lines and petroleum refineries.”
He thanked the Ministry of Economy for providing financial resources and facilities to oil projects, adding: “Last week, with today’s project, a total of $500 to 600 million has been provided for projects in the oil industry.”
Regarding the memorandum that was signed on Saturday, Owji said: “This project transports 150,000 barrels of products per day from Rafsanjan to the northeast of the country, and if this pipeline is not there, about 800 to 1000 tankers will have to carry this product daily. The project is important for fueling power plants and industries and for exporting to neighboring countries, including Afghanistan and Pakistan.”
Owji emphasized: “We are trying to tap domestic manufacturing capacity for all the equipment and raw materials needed for construction of these pipelines and stations.”