Iranian Government to Increase its Budget for National Gas Projects

Photo of author
Written By Farid Shojaei

Iranian Deputy Oil Minister Javad Owji

Iranian Deputy Oil Minister Javad Owji says the local government has not stopped its investments in gas industries. During the recent months, local newspapers accused Mahmoud Ahmadinejad’s government of cutting budget for gas and oil projects.

“According to the proposed development plan, the Iranian government must increase its investments in gas industries by $2 billion until the end of current Persian year (happens March 21). Currently we are in the middle of negotiations with other organizations to finalize arrangements and contracts.” Javad Owji told a press conference on Friday.

The new rounds of sanctions, which are imposed by the United States and European Union, have targeted Iran’s oil and gas industries. So, the country is suffering from extensive barriers in cooperating with foreigners on its local projects. However, Javad Owji said: “National Iranian Gas Company is ready to take funds from foreign and local countries. It’s worth mentioning that NIGC has secured some investments from foreign-based companies during the last year.”

He also went on to reveal the negotiations with Gulf countries for gas exports. “We have received requests for gas imports from Gulf countries. National Iranian Gas Company has started its talks with governmental companies of these Arab states on this subject.”

Iran is one of the richest regions in the world in terms of hydrocarbon resources. Iran has more than a century of history in exploration and production activities.