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MONTHLY Iran Petroleum Issue No. 75 September 2018 12th Iran Plast in Tehran Iran Polymer Highly Attractive The growth of polymer and plastic industry in Iran has helped domestic manufacturers find more destinations for their products under any circumstances. The JMMC Established by OPEC-non-OPEC; Not a Decision-Making Body Iran’s Minister of Petroleum Bijan Zangeneh has said the Joint Ministerial Monitoring Committee (JMMC) is not legally competent to make decisions about adjustment of production quotas. Sanctions, AlreadyKasra Nouri Dud Policy Director General of Public Relations n spite of efforts made by impose sanctions on Iran’s oil sector. Such industrialized nations to master sanctions were already imposed on Iran Isophisticated technologies with a by former US administrations, proving view to developing and fostering non- to be futile. Despite threats and illogical fossil energies, oil still remains the most measures taken by the US government dominant energy carrier in the world. in imposing unilateral sanctions on Oil is unlikely to be supplanted by any Iran, the oil market is not in position to sustainable alternative at least for remove supply from Iran which remains decades. That explains why oil market the world’s largest holder of hydrocarbon has experienced ups and downs over the reserves. past century. The oil market is affected Driving Iran out of oil market would by the slightest global and even regional require an extra capacity of 2.7 mb/d, developments. The establishment of the which is currently impossible even by Organization of the Petroleum Exporting OPEC and non-OPEC producers together. Countries (OPEC) was among the first The second obstacle in the way of steps taken aimed at supply management imposition of unilateral sanctions is the and adjusting supply and demand in the psychological impact of energy market market. Maintaining market stability and that may experience a new price shock. security for energy carriers, particularly That is not acceptable even to the US’s oil, takes up added significance when traditional allies. Oil price volatility one takes into consideration the fact that would hinder development plans in oil non-OPEC oil producers and even oil producing nations which heavily depend consumers are in continued interaction on petrodollars. However, developing with OPEC in a bid to push ahead with nations are also facing budgetary shortfall, their industrial, economic and social which would result in depression and development plans without hitting any social consequences. No country would snags. A prime example of such OPEC/ be ready to accept such conditions just non-OPEC cooperation was the recently to appease Donald Trump. Trump has so held 10th Joint Ministerial Monitoring far triggered political and trade war with Committee (JMMC). The meeting such countries as Canada, Mexico, China underlined the need for the participating and Russia after making hasty decisions countries to conform to their quota and pursuing adventurist policies. Now obligations. Under such circumstances, he seems to have no rational analysis of the Trump administration is seeking to re- realities on the ground in the oil market. Ministry of Petroleum Islamic 26 44 Republic of Iran NIOC Eyes More Export Terminals Managing Editor: Kasra Nouri South Pars to Export Products via Tombak Director General of Public Relations Editor in chief: Parastoo Younchi Executive Editor: Hamid-Reza Shakeri-Rad Graphic Designer: Saman Goodarzi Photo Section, PR Office, MOP: 30 Hassan Hosseini Reporter: Negar Sadeqi Javad Asghari Translator: Kianoush Amiri Coordinator: Abbas Lotfi Tel/Fax: (+98 21) 61626113 www.iranpetroleum.ir [email protected] Paulo Sérgio Bento 15 Petchem The JMMC Iran to Brito: Ilam, Established by Beauty of Projects OPEC-non-OPEC; Build Oil COVER I’m Enjoying Online Not a Decision- Storage Tanks Iranian Zagros in 5 Years Making Body Football, in Jask Port Culture and Food 4 56 58 32 22 Interview September 2018 Issue No. 75 MONTHLY Interview Iran’s Minister of Petroleum Bijan Zangeneh has said the Joint Ministerial Monitoring Committee (JMMC) is not The JMMC Established legally competent to make decisions about adjustment of by OPEC-non-OPEC; production quotas. at all, apart from Russia and to some extent Mexico. members or small members, all the members are Russia has helped a while and the point is that equally participating in the Organization’s activities they’re not our problem in this situation right now, and every member’s views should be taken into they helped and then that period will expire, and consideration. And my main issue is that, the JMMC they can cooperate as much as they want based on meetings is given the mandate to monitor market aNot Decision their own interests as a country that is a non-OPEC and report .As you may recall I was head of the producer. But expectations from the OPEC countries OPEC’s Ministerial Monitoring Subcommittee(MMSC) is higher, particularly in the current situation — and for eight years at one time ,and the body never had Maker I’ve previously mentioned this many times — it’s not all this fuss and noise before. Even though, some Bijan appropriate that two OPEC members start leading non-OPEC countries participate in it, it doesn’t make In an interview with and taking on the leadership of an anti-Iranian much of a difference anyway. there are S&P Global Platts and Bloomberg Zangeneh some countries movement. News in Tehran, he said that “all You positively talk about Russia. But which want to decisions will be adopted only in the Do you mean UAE and Saudi? apparently, Russia and Saudi Arabia are together… dismantle OPEC two OPEC OPEC oil and energy ministers’ meeting I’m not mentioning any names at all. But the two I said before. Some countries have complicated and they want members in the presence of all member countries OPEC members are taking the helm of global anti- political objectives expressed in simple, economic to make this Iran campaign in the oil market, this is completely are taking thing [JMMC] and based on consensus.” The interview was obvious and it’s not right. It’s not either right as say ‘we will sort it out [oil shortage in market],’ any the helm of much bigger carried out ahead of September 23 JMMC neighbors or as partners. They take on this anti- wiseterms, person while saysthey ‘that’sare not right, economic demand at all. and When supply they global anti- than it is meeting in Algeria. Iranian tide and then they also take onboard should be balanced naturally. But if you look at it Iran campaign cooperation with America in order to hurt Iran, and a bit closely, it is not an economic argument. It is in the oil Will you attend the JMMC meeting next with the US and fear of the US NOPEC bill. They then they pull some non-OPEC members along with indeed a signal to the US: put as much as pressure market, this week? them who don’t necessarily understand the depth of you want on Iran, and we won’t let the market face is completely I’m not going (to the meeting). Mr. Kazempour destroying OPEC without directly saying so, they want the political complexity and the other aspects that any problem. This is what we should get. This is a obvious are sacrificing OPEC, they are slowly and gradually Ardebili, will head the Iranian delegation in Algeria. to gather some names together to create some sort I don’t want to explain here. For instance they will political message. I don’t believe that Russia wants and it’s not But Iran’s position in terms of the current agreement say something like ‘we won’t let there be a shortage to cooperate with the US and blow a strike to us, but right. It’s not will be made in the ordinary meeting of the OPEC idea that you should commit suicide for fear of death; in the market’, which on the surface is a very good some others do. Conference. soof “Forum”we’ll carry to onreplace what OPEC. we’re Wedoing. never In the believe nearly in 60the idea to say or is economic. But in my opinion such a either right as year life of OPEC this sort of thing has happened statement has nothing to do with economics and is What’s the JMMC’s role in pursuing the US neighbors or What are the positions of Iran in the 10 times or more, and there will be more ups and 100 percent political and against Iran. Anyone who will? as partners Sunday meeting in Algeria? says they will compensate for the shortage in the It is not to make a decision or determine or in my view OPEC is one of the third world’s biggest market is speaking against Iran. And it’s a political distribute quotas… a group here has made up decision-making mandate. The JMMC doesn’t have accomplishments,downs. You mustn’t not just just sacrifice in terms OPEC of oil out producers, of fear — statement; I do not see this as economical. There something against Iran and assume that they can We believe that this meeting doesn’t have any but it’s an organization that can impact the world’s are not any economic principles in it. And contrary succeed. These are bad intentions. I announce here decisions, not on any issue. Its observations aren’t economy and it has a good, strong foundation. And to what they say, they’re actually involving not only that what they do is not appropriate,” determiningthe authority either. nor is Itit onlylegally observes qualified and to monitorsreach and so there are some countries which want to dismantle OPEC but also non-OPEC countries in a political it just watches, observes and reports to the meeting OPEC and they want to make this thing [JMMC] much game.
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