By Abdul Kerimkhanov
Iran’s budget is least tied to oil production among OPEC member countries, and country's macro policy is to reduce dependence on oil revenues, said Iran's oil minister Bijan Zanganeh.
He stressed that although Iran’s budget is least tied to oil among OPEC member countries, Iran is in good condition compared to neighboring countries.
Zanganeh noted that the Iranian government takes into account the price of $ 54 per each barrel of oil in the budget for next year.
He stated that in some cases, the estimated price will change, giving an example of the price at $ 70 per barrel this year, despite the estimated price of $ 55, adding that $ 54 is the balanced price for the next year.
Meanwhile, the representative of the Iranian parliament, Bahruz Nemati, forecasts that next year the country will export 1.5 million barrels of oil per day starting March 21, 2019.
The Iranian oil industry has a significant impact on the economic development of the state as a whole. The country is among the top five world oil powers and ranks fourth after Saudi Arabia, Russia and the United States.
The oil sector is concentrated in one large state-owned company - the National Oil Company of Iran (Sharkat Malli Naft Iran, NIOC). The most famous place of accumulation of Iranian oil is the oil and gas basin of the Persian Gulf.
Depth horizons of oil have not been studied yet due to the lack of modern search technology. The current oil reserves of Iran at the current level of production will be enough for 95 years.
Iran is part of OPEC, for this reason, all production and export of "black gold" is controlled by quotas. All extracted oil is subdivided into light and heavy. Light oil is considered better. Iran is trying to modernize the current oil industry and develop new fields to increase the level of exports outside the country.
Oil export is carried out directly through the terminals, which are located on the Persian Gulf islands. The largest among them are the islands of Kharg, Sirri and Laban. From there, the petroleum product is delivered to Japan and the countries of Europe. Export revenues are the main source for Iran’s economic growth, and they contribute to the formation of the state budget revenues.
Iran's largest oil producing companies are National Iranian Oil Company (NIOC), Petronas European subsidiaries, Shell and Total.
Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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