July 8, 2008

High Oil Prices Raised Iran’s Import Expenses – Official

Text of unattributed report headlined: Director of International Affairs in National Iranian Oil Company: Do not expect increase in oil reserves of oil producer countries published by Iranian newspaper Aftab on 5 July

Director of International Affairs in National Iranian Oil Company [NIOC] said: One does not have to expect high level of oil reserves in the countries producing oil. He added: Unprecedented high prices of oil forced producer countries to sell even the last barrel of the oil reserves.

In an interview with the Mehr [news agency] Hojjatollah Ghanimi Fard said: If the major oil consumers do not want to encounter oil deficit during next few years, then they have to support investment in the priority sector of the countries that have the potential for increasing oil production.

He stressed: This support should not be only in the form of cash payments. Transfer of modern technologies for speeding-up the exploration and production operations should also be given attention.

He stressed that high prices of oil is of no economic benefit for the oil producers and consumers.

He mentioned: During the period of high prices, the majority of countries producing oil lose their financial strength because oil income have to be spent for import of the products and services with prices that are several times higher than before.

Elaborating on the effect of oil prices rise on the Iran's economy, Director of International affairs of the NIOC said: One of the consequences of the oil's high price is unprecedented high price of oil products.

He said that part of Iran's requirements for the oil and petroleum gas fuel is secured from the abroad. Consequently, the increase in the budget for such imports also is unprecedented.

Originally published by Aftab-e Yazd, Tehran, in Persian 05 Jul 08.

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