oil revenue Archives - Iran News Daily

Iran Oil Revenues Increase by 580%

mahla — Tue, 26 Jul 2022 20:42:40 +0000

TEHRAN (Iran News) –The economic spokesperson of the government announced a 580% increase in the income from the exports of oil and in gas condensate in the 4 months of this Iranian calendar year, compared to the same period last year.

Ehsan Khandouzi, Economy Minister and the government’s economic spokesperson Ehsan Khandouzi said in his press conference at a presser that the government’s performance in the first 4 months of the Persian calendar shows that the government has been successful in reducing the budget deficit to a good extent.

Khandouzi said: “Compared to the first 4 months of the previous year, this year we saw a 48% growth in budget revenue sources.”

Emphasizing that the government’s focus is on getting more sustainable resources and decreasing the growth of expenses, he stated: “The government’s agenda in the first 4 months of 1401 Iranian year was to reduce the budget deficit and as well as reducing inflationary pressure and countering the budget deficit.”

Saying that the dollar has been removed from commercial transactions between Iran and Russia, Khandouzi added that the ruble has entered the trade transactions between two countries.

He also touched upon the economic aspects of the recent visit of the presidents of Russia and Turkey to Tehran.

Saying that neighborhood policy is the first priority of Iran’s foreign policy, Khandouzi said that President Putin’s visit to Tehran was in line with the implementation of the agreements made during president Raisi’s visit to Moscow. Referring to the use of the ruble (Russia’s currency) in the commercial relations between Iran and Russia’s banks, the minister said: “We hope to hear more good news next year.”

The Leader of the Islamic Revolution, Ayatollah Seyyed Ali Khamenei, in his recent meeting with Russian President Putin emphasized the removal of the dollar from the center of global exchange.

In response to a question on the taken actions by the Ministry of Economy in line with the Leader’s order, Khandouzi said: “The first step has been taken with Russia and ruble has entered into the trade portal of Iran and Russia.”

He added added: “Iran’s Central Bank is in charge of following this issue and good plans have been started in this regard.”

He also pointed to the recent visit of the presidents of Turkey and Russia to Iran and said: “These trips brought good economic achievements and, as a result, eight cooperation documents were signed with Turkey.”

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Sanctions Deprived Iran of $100b in Oil Revenues

mahla — Sat, 04 Sep 2021 05:51:33 +0000

TEHRAN (Iran News) – New Oil Minister Javad Owji says the “tyrannical” U.S. sanctions have deprived Iran of 1.8 billion barrels of oil exports and more than $100 billion of revenues.

Addressing the first OPEC Plus meeting in Vienna since being named to the new post, Owji also touched on the US embargo against Venezuela, saying “the imposition of illegal and unilateral U.S .sanctions on the two founding members of OPEC is contrary to the principles and rules of international law”.

The U.S. imposed its most draconian sanctions on Iran three years ago with the express aim of bringing the country’s oil exports down to zero after Washington abandoned an international nuclear deal with Tehran.

No matter how hard it tried, the U.S. did not achieve its goal and Iran continued sending its oil to the market – though in reduced volumes – using innovative ways to bypass the illegal sanctions.

Owji promised that “good things will happen in terms of oil sales in the coming months”.

“After the tyrannical sanctions, oil sales dropped dramatically but this capacity exists in the Ministry of Petroleum and all departments to sell oil,” he added.

One of the ways is to swap oil for goods or investment, Owji said, adding the potential can also be used in other sectors and industries.

Owji said Iran will return to its pre-sanctions crude production level as soon as the US sanctions are removed. “We are against using oil as a political tool that would harm the oil market.”

Oil ministry officials have said a removal of the sanctions could bring back 3.8 million barrels per day of Iranian oil to the market over time. They are confident of the country’s ability to increase production quickly. One senior official said recently that most output could be restored within a month.

On Wednesday, the Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, decided to stick to a policy from July of phasing out record output cuts by adding 400,000 barrels per day (bpd) a month to the market. Owji said Iran backs the decision.

“We will definitely work with OPEC and support the OPEC+ statement. The head of OPEC also reminded that as soon as the sanctions on Iran are removed – and specifically in the field of Iranian oil – ‘we (OPEC) will not have any restrictions on oil activities and cooperation with Iran’, and as soon as the sanctions are removed, we will return to the same capacity we had before the sanctions,” he said.

Owji also touched on his ministry’s priority to combat corruption, saying efficient and capable forces have already been identified for the purpose.

“The bottlenecks, including with regard to contracts, transfer to contractors and purchase of goods, have been correctly identified,” he said.

Owji also said his ministry will focus its support on domestic manufacturers and knowledge-based companies to move towards reducing costs by strengthening domestic potentials.

“I remember as a CEO in the oil upstream some 20 years ago, about 60 to 70 percent of the goods needed in our projects were imported, but today thanks to the sanctions, we see that 65 percent of the goods are domestically made and only 30 to 35 percent are imported.”

Meanwhile later on Wednesday, speaking in a televised interview, the Iranian Oil Minister said bartering oil with goods and investment were some methods the country could resort to in order to trade its crude oil under the sanctions.

Regarding the 13th administration’s plans to sell crude oil and circumvent the sanctions, he said: “With the capacity that exists in the Ministry of Petroleum and its subsidiaries, capable and specialized forces, as well as the will to sell oil and use the power of all foreign capacities and devices and given the handy permits and authority given to the Minister by the Supreme National Security Council, along with the support of the administration, we undoubtedly promise with good planning and strong will that, God willing, good things will happen in the field of oil sales in the coming months.”

The official added: “Although the sale of our oil has decreased significantly after the oppressive sanctions, there exists this power and capacity in the Ministry of Petroleum and one of the ways is to barter oil with goods and investment not only in the oil sector but also in other sectors and industries.”

The Oil Minister continued: “In order to maintain the current level of production, experts predicted an investment of at least $15 billion, and to increase production and operationalization of new joint fields and their development and completion in four years, about 25 to 20 billion of capital is needed.”

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Maduro: Oil Revenue to Plunge 99% by Sanctions

reporter 1222 — Thu, 01 Oct 2020 05:05:03 +0000

TEHRAN (Iran News) – President Nicolas Maduro says US financial sanctions have caused Venezuela’s oil revenues to plunge 99 percent over the last six years.

Venezuela is the owner of the world’s largest oil reserves, but its oil industry is hobbled by US sanctions which have thrown the country into its worst economic crisis in years, Press TV reported.

Maduro said $30 billion have been lost each year since 2015, adding, “It’s impossible to imagine the amount of pressure placed on our economy.”

“For every 100 dollars obtained through oil sales in 2014, we receive one today,” which means oil revenues fell from more than $56 billion in 2013 “to less than $400 million last year,” Reuters quoted him as saying.

According to Maduro, Venezuela experienced the “sharpest” foreign exchange losses in its history between 2014 and 2019. “In six years we lost 99 percent of our foreign exchange revenues,” he said.

The main reason for the huge drop in revenues was “the war declared on oil prices,” to “attacking the world’s major producers,” he said.

With most ship-owners and oil traders shunning business with Venezuela for fear of the sanctions, Iran has emerged as the only country helping Caracas bring its refineries back to service and cope with an acute fuel shortage.

The Iran-flagged tanker Forest, the first of a group of three tankers transporting some 270,000 barrels of Iranian fuel to Venezuela, entered the waters of the South American country on Monday, reports said.

The two following Iranian tankers, the Faxon and the Fortune, are estimated to arrive in early October. They are together expected to deliver about 820,000 barrels of gasoline and other fuels, helping to ease shortages in Venezuela.

The same vessels and two additional Iranian tankers delivered 1.5 million barrels of gasoline and diesel fuel to Venezuela between May and June despite US threats to stop them, while the South American nation shipped a cargo vessel carrying alumina to Iran’s Bandar Abbas port.

A very large Iranian crude carrier (VLCC) is expected to leave Venezuela’s Jose port, with 1.9 million barrels of Venezuelan heavy oil which is for sale in Asia.

Lessons learnt from Iran

On Tuesday, Venezuela’s Foreign Minister Jorge Arreaza was quoted as saying that his country had learnt from Tehran how to confront coercive US measures.

After talking with his Iranian counterpart Mohammad Javad Zarif via a video call, Arreaza also said that Venezuela’s historic relations with Iran are at their best.

Washington has sought to disrupt the deepening bilateral trade between the two countries.

Last month, the US government went on a full-throttle propaganda campaign, claiming that it had seized 1.116 million barrels of Iranian fuel because it was bound for Venezuela.

Iran, however, asserted that neither the ships were Iranian nor their owners; their cargo had no connection with the Islamic Republic.

Leading American magazine Foreign Policy said this month that Tehran is now sharing its lessons in resilience with the beleaguered Venezuelan government.

“The simple fact that Iran, which has faced a broad campaign of sanctions for more than a decade, has recently come to the aid of Venezuela, which has been under concerted sanctions pressure for only a few years, suggests a remarkable degree of economic resilience. When comparing the two economies, the most salient question is not whether Iran will become like Venezuela, but rather whether Venezuela will become more like Iran,” the US publication said.

Venezuela pledged to continue trade with Iran after the US announced new sanctions on Iranian officials’ entities as well as President Maduro this month.

The Venezuelan Foreign Ministry said, “No intimidating and arrogant action by the US government will prevent it from exercising its sovereign right to establish economic and commercial relations freely with the Islamic Republic of Iran or with any State.”

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Iran foreign oil sale rises; CBI says

reporter 1222 — Sat, 11 Jan 2020 08:03:24 +0000

TEHRAN (Iran News) – Chief banker of Central Bank of Iran, said Tehran has devised alternative ways to bypass US embargoes against its foreign oil sale and to retrieve revenues.

Abdolnaser Hemmati, the governor of the Central Bank of Iran (CBI), said Thursday that the government had been enjoying more foreign oil sale income in the recent past, thanks to new methods it was using to counter the sanctions, reported Press TV.

“I assure people that the country’s economic conditions are not grim but we are in a very good position through better methods we have found for supplying currency and selling oil,” said Hemmati.

The comments came as Iran’s rial began to surge against major international currencies on Thursday after several days of trading on year-long lows.

The surge came following Iran’s missile attacks on two US military bases in neighboring Iraq, a move that came in response to US assassination last week of a senior Iranian military commander who was on a mission to the Arab country.

Hemmati had said that the CBI would take action to restore forex prices to normal levels.

He said that the fall in the price of the US dollar, sold at 135,000 against the rial earlier in the day, and other major currencies would continue in the coming days.

The official also rejected reports that Iran had serious difficulties bypassing American sanctions and selling its crude.

“Today, the oil of the country is sold and the due payment is received,” said Hemmati, adding, “We managed to neutralize the harshest and the most unprecedented sanctions of the enemy.”

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