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Iran's private sector to boost energy projects with foreign partners

Iran's private sector to boost energy projects with foreign partners
(Thursday, May 18, 2023) 09:46

TEHRAN, May 18 (Nipna) - Iran's first vice president said on Wednesday that $160 billion worth of upstream, downstream and value chain projects in the energy sector had been defined with a comprehensive business plan, and that the projects were a great opportunity for cooperation between domestic and foreign companies.

Mohammad Mokhber, speaking at the official opening ceremony of the 27th Iran International Exhibition of Oil, Gas and Petrochemicals (Iran Oil Show) in Tehran, said that this year's slogan of "Production Growth and Inflation Control" by the Supreme Leader was a very important and essential opportunity for the oil and gas industry to achieve production growth and inflation control in 2023.

He said the strategy of production growth and inflation control was based on popularizing the economy and activating the private sector, and added: "Iran has very large capacities in sectors such as oil, mining, marine economy, digital economy and ... that we should take advantage of this favorable opportunity to develop these capacities with the participation of people and the private sector by drafting the seventh plan."

The first vice president said that achieving this year's economic goals was not possible with words alone and that the problems and obstacles of the private sector should be removed in practice, and announced: "So far, the structure of the government's economic sectors has been such that it has been difficult to separate from the country's large facilities and capacities, and there are also resistances in some areas, but in the thirteenth government there is this will to put the country's facilities and capacities at the disposal of the private sector."

Mokhber pointed to the importance of activating universities and knowledge-based companies to take advantage of the country's capacities, and said: "The world's science and technology is present in universities and scientific elites of the country who have been active in some areas, but there are areas where the country has basic needs that are in this area. The situation of productivity is at its lowest possible level."

He said: "Science, technology and equipment are among the essentials of productivity growth, which is only possible by employing university capacity and educated youth, and cooperation between the private sector and academics should serve to achieve the strategy of this year's slogan and reach the desired point of productivity."

He stressed: "The Supreme Leader has always emphasized on taking advantage of the capacities of knowledge-based companies, while the main reason for the growth of knowledge-based companies is human capital, and Iran has the strongest, most determined and smartest human resources in the world, but we have used such a capacity at least. And so far they have faced many obstacles by creating obstacles, not trusting risk-taking and many problems, which fortunately in the thirteenth government appropriate planning has been done for entering universities and knowledge-based companies in commercialization and economizing their achievements."

Economic salvation of the country by private sector

The first vice president added: "The realization of this year's strategy will be done with a serious decision and determination by the private sector, and it is expected that the economic salvation of the country will be achieved by the government and the private sector."

Mokhber considered economic growth as dependent on activating the private sector and participating foreign companies in this field, and emphasized: "Holding such exhibitions can lead to acquaintance and cooperation between domestic and foreign companies in energy field so that with a joint planning new movements, new collaborations take shape in this field."

He stated: "In the thirteenth government's oil ministry, $160 billion worth of projects from upstream, downstream and value chain projects in energy field have been defined with a comprehensive business plan, some of which have started, but a large part of these projects create a suitable opportunity for cooperation between domestic and foreign companies."

The first vice president said: "The thirteenth government is fully prepared to finalize energy projects with a focus on private sector, financing and participation of foreign companies. The private sector has shown well over past years under sanctions by enemies that it can easily carry out its economic exchanges with foreign parties."

Mokhber also referred to serious problems in energy consumption field in country, and said: "Part of these problems is due to lack of proper investment in gas field, but a significant part of lack of optimal consumption in country is due to lack of energy consumption management in country. To such an extent that 85 million people of Iran need 80 percent energy supply of a country with a population over one billion people.”

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