Obstacles in the oil industry

Domestic and international opposition, blocking branding of gas stations and lack of hiring of elite specialists in the oil industry are the reasons that the Ministry of Oil has stated for the lack of development in this field. Donya-e-Eghtesad writes that although by the end of the year, 10 new oil contracts were planned for the development of oil fields, considering the amount of time left, this goal seems unlikely to be realized. “I don’t dare announce the name of the new contracts which are about to be signed as I fear they would do something to prevent its signature”, said Bijan Zangeneh, the Oil Minister of Iran.

The growth rate of the consumption of fuel, government subsidiaries, reduced production in a number of oil fields and problems with transferring oil money are the other issues challenging Iran’s Ministry of Oil. The Minister of Oil who spends 70% of his time in foreign negotiations states that all negotiations are extensively recorded.

He also called the 220 thousand person workforce employed in the oil industry a problem as this sector only requires 70 thousand people. These people were hired after 2006 and can no longer be fired.

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See the related article: Long-Term Collaboration through New Iran Petroleum Contracts