Hossein Noqrekar Shirazi (2nd r) and Zhou Baixiu (2nd l) exchange documents, as Oil Minister Gholamhossein Nozari (C) looks on in Tehran, on Sunday.

National Iranian Oil Company and China Petroleum and Chemical Corp., (Sinopec), signed an agreement for the development of the onshore Yadavaran oilfield in southern Khuzestan province.
The two-billion-dollar contract, in effect for seven years, was signed by Hossein Noqrehekar Shirazi, deputy head of Oil Ministry for international affairs, and Zhou Baixiu, head of Sinopec’s International Exploration and Production Unit, late Sunday, IRIB reported.
The deal completes a memorandum of understanding signed in 2004.
To fuel its rising energy demand arising from the booming economy, China, or the ’the factory of the world’, has been snapping up energy resources across the globe.
The Yadavaran deal calls for the Chinese company, Asia’s largest refiner, to invest in developing the oilfield in two phases, with the first phase to produce 85,000 barrels per day to be implemented in four years and the second phase to produce another 100,000 barrels per day to be completed in another three years, Xinhua said, citing Oil Minister Gholamhossein Nozari.
The minister said Sunday on the sidelines of 12th International Energy Conference that despite Washington’s efforts to block major oil and gas companies in Iran; sanctions have no impact on the industry.
The oil contract with Sinopec is sending a signal to western companies that they might miss out on potentially lucrative contracts with one of the world’s biggest energy exporters if they continued to heed US-inspired sanctions against Tehran.
“If other countries who like to invest in oil and gas hesitate, they will lose opportunities,“ FT quoted Nozari as saying.
He further noted that Iran had signed multi-billion dollar contracts with some other non-western companies to develop two major upstream oil fields a few months ago.
The minister refused to give more details because the companies feared facing international pressure.
Yadavaran oilfield has 18.3 billion in-situ barrels of oil and 3.2 billion barrels of recoverable oil. The field has also 12.5 trillion cubic feet of natural gas of which 2.7 trillion are recoverable. The onshore field is located to the south of Azadegan oilfield, one of the world’s largest fields.
Heavy crude makes up between 65 and 75 percent of the field.

Iran will export electricity to UAE through a power transmission network which will be laid on the Persian Gulf seabed, said Deputy Energy Minister for Electricity Affairs Mohammad Ahmadian.
He added that UAE is ready to import electricity from Iran through the network to be built by the two countries.
The official noted that at present an international consultant is conducting studies to estimate the total cost of the project, IRIB said.
Ahmadian stated that the government always prioritizes the supply electricity to local consumers, adding Iran is building power transmission lines through join investment with neighboring countries to exploit unused capacities and improve the performance of national power grid.
Referring to the high demand for electricity in neighboring countries, he stated that negotiations are underway to increase power exchange and export with these countries.
Ahmadian said that Pakistan has called for increasing the ceiling for electricity import from Iran to 1000 megawatt.
The official said that Afghanistan, which is linked to Iran’s power grid through a 132 kilowatt (KW) transmission line, has recently asked for constructing a new 230 kw electricity transmission network.
“Turkmenistan is building a 400 kilovolt (KV) electricity transmission line on its border with Iran,“ he noted.
He said that new electricity transmission line to Azerbaijan has been constructed and will go into operation soon. “Establishment of the third 400 kv power transmission network to Armenia is under Study,“ he noted.
The official stated that Armenia is due to compensate gas import form Iran with electricity.
Referring to daily exchange of power with Turkey, the official noted that this country is willing to generate 6000 megawatt electricity by constructing power plants in Iran and Turkey.
He said that a 400 kv electricity transmission line between Abadan and the Iraqi city of Hadithah will go into operation within the next few months.
“Another line which be built from Kermanshah to Baghdad in one and a half years will significantly increase the power exchange capacity between the two countries,“ he concluded.

President Mahmoud Ahmadinejad on Sunday urged his economic team to move toward making stock exchange prosperous and safeguard the rights of share holders.
Economic policymakers discussed strategies to give a new life to the bourse which had undergone turbulent periods in recent months.
Last month, shares had fallen due to a sudden decision by the Ministry of Industries and Mines to increase Government ownership property profits. Mineral companies were critical of the decision. As a result, the chief executive ordered the ministry to conclude long-term deals with these firms for exploiting mines. He also obliged the ministry to draw up terms of exploitation and state rights over mines.
As per Ahmadinejad’s decision, the public shall have access to transparent information on the performances of refineries, petrochemical complexes and companies whose raw materials are supplied exclusively by the government before their shares are made available to the private sector.
Financial analysts maintain that the president’s latest decisions would help rejuvenate the stock exchange if they are followed up and fully implemented.
Minister of Economic Affairs and Finance Davoud Danesh-Jafari contended that consolidating the capital market is just a part of the plan whose other component is establishing a smart databank on shares to make information dissemination in the stock exchange transparent.
Speaking at a ceremony to launch the databank, he stated that transparency in disseminating information would bolster the bourse.
Ali Salehabadi, head of Iran’s Bourse and Stock Exchange Organization, also stated that ’reasonable’ offering of shares in the bourse would safeguard the share buyers’ rights as mentioned by the president.
He added that his organization has adopted proper strategies to move to this end.
As bourse indices have bounced back since last week, it seems that the economic team of the administration should pave the way for attracting foreign investors into the stock exchange.
Offering the shares of two giant steel and aluminum companies in Bourse Organization did not attract investors in recent weeks.
Some analysts believe that Stock Market faces two problems in purchasing the shares of state-run companies. They include liquidity shortage and incapability of private sector to meet the required capitals as well as improper marketing for selling the shares.
The bill on liberalizing Iran’s economy and giving the private sector a greater role has not been finalized in the Majlis. Once it is implemented, it could clear many ambiguities and remove the problems.
The government aims to offer the stocks of first state-run bank in Bourse. However, it will not bear fruits if the current trend continues.
Economic officials should implement the alternatives proposed by Ahmadinejad.
Currently bourse indices are improving to some extent with hopes for boom. The important fact is what the future program and strategy would be.
President Ahmadinejad’s special attention to the bourse is considered a turning point but there is still a long way to go.

Of the 650-kilometer railroad, which is scheduled to be completed in 2011, 140 km will run through Kazakhstan.

Operations to connect Europe by rail to the Persian Gulf via Iran are to begin by the end of next Iranian year to March 2009, using the latest railroad technology.
“The project to connect Iran’s rail network to Europe was planned years ago but its implementation was delayed due to Turkmenistan’s inaction,“ Hossein Tehrani, executive director of railroad infrastructure projects, told Fars news agency.
Referring to the availability in Iran of necessary technical and engineering expertise, he said that the order to begin preliminary studies on implementing the Iranian section of the project was immediately issued following the signing on October 16 of the tripartite agreement with Turkmenistan and Kazakhstan.
“Construction work on the project within Iran is set to be launched by early 2009,“ Tehrani added.
The north-south railroad, also known as the ’Intercontinental Railroad’, is expected to serve as an important transportation link between Europe, Central Asia and the Persian Gulf via Russia and Iran.
Of the 650-kilometer railroad, which is scheduled to be completed in 2011, 140 km will run through Kazakhstan, 420 km will be in Turkmenistan and 90 km will be laid in Iran.

Managing director of the National Iranian Oil Refining and Distribution Company (NIORDC) Monday said that Iran can export 20 percent of its gas production provided its energy resources are managed efficiently.
Speaking on the second day of the 12th International Energy Conference in Tehran, Mohammad Reza Nematzadeh stated that checking lavish energy consumption is a must as envisaged by Vision 2025, which defines long-term economic plan.
“We should move towards natural gas exports since it is not reasonable for a country with close to 1.2 percent of the world population (Iranians) to consume 16 percent of the global natural gas resources,“ he was quoted by ISNA as saying. Iran holds the world’s second largest gas reserves after Russia.
Nematzadeh, also deputy oil minister, further stated that dealing politically with the country’s energy case was against global energy security.
He noted that threats by some powers to boycott international companies in case of investment in Iran’s oil and gas industries and transferring technologies were against the security of international energy industry.
“Such threats and political confrontations will be to the disadvantage of all parties particularly consumers,“ he warned, according to PIN.
The official added that all countries were expected to cooperate sincerely in building energy security.
The NIORDC chief said that the growing demand of industrialized and developing countries for energy, reasonable and competitive price of gas in comparison with those of other alternatives of energies, and lower pollution level compared to other fossil fuels have given it the designation of ’Fuel of the 21st Century’.
Speaking at the conference themed ’Energy’s Geopolitical Development; Role of Natural Gas’, Oil Minister Gholamhossein Nozari proposed on Sunday the establishment of an international center for oil and gas technologies.
“Iran has proposed the establishment of such a center to expand interactions with wealthy nations possessing advanced technical know-how on exploring and developing oil and gas sector and hydrocarbon-rich countries,“ Nozari stated.
The conference kicked off on Sunday, highlighting the crucial role of Iran in the future world energy market.
Managers and experts from 16 states, including Austria, the Netherlands, Britain, Japan, Russia, France, and Belgium are participating in the two-day gathering, of whom 13 will deliver papers.

A flag of Teyf Scientific-Analytic Group displayed at the conference venue.

A number of telecommunications experts and managers gathered in Tehran on Sunday to hold talks on the privatization of Telecommunications Company of Iran (TCI) in line with Article 44 of the Constitution.
The article seeks large-scale privatization in key economic sectors which were off limits for private enterprises for almost three decades and downsizing the government.
The gathering is planned by Teyf Scientific-Analytic Group within the framework of ’International Conference on Investment Opportunities in Iran’s Telecom Sector’ on January 16.
Those interested can refer to www.teyf.ir to obtain the latest information about the gathering.
Managing director of TCI, Saber Feizi earlier said that five percent of the company’s shares will be put on sale in the stock exchange for price evaluation on December 22.
He noted that the TCI is ready for privatization, adding that the plan to convert the company’s subscribers’ deposits to stocks has not been abandoned yet.
Earlier, he announced that three foreign companies from Asia, Europe and the Middle East have submitted official requests to purchase the company’s shares.
Meanwhile, the international confab, organized by the group, will be attended by state mangers, policy makers, local and foreign investors as well as major players in Iran’s telecommunication sector.
Teyf will provide an environment for identifying various investment capacities, opportunities and challenges in Iran’s telecommunication market, according to a fax sent to Iran Daily by Teyf Group.
The seminar aims to introduce new opportunities in Iran’s telecom sector in an effort to help attract domestic and foreign investments.
It also plans to familiarize investors with Iran’s telecommunication market and the available opportunities.
In addition, it wants to study the capabilities of and challenges facing Iran’s telecom investors.
The one-day gathering is to be held in Khajeh Nasir Hall of Islamic Republic of Iran Broadcasting’s International Conference Center in Tehran.

Domestic automobile plants produced 789,00 vehicles during April 21-November 21 showing a rise of 16 percent compared to figures for the same period last year.
According to IRNA, some 662,000 cars were manufactured during the eight-month period including Pride Nasim and Saba (312,000 units), gas-fuelled Peugeot RD (49,000 units), Peugeot Pars (35,000 units), gas-fueled Peugeot 405 (40,00 units), Peugeot 206 (51,000) and Samand (39,000).
Pride Saba and Nasim which are manufactured by SAIPA Industrial Group recorded the highest production among domestically-manufactured vehicles.
Meanwhile, 1,260 minibuses were manufactured in the eight-month, showing a 46-percent rise. Production of pickups rose by 15 percent to reach 104,000 units while truck output increased by 38 percent to reach 14,490 units during April 21-November 21.
Iran’s auto manufacturing industry, born in 1957 with the assembling of Jeep, is currently the 16th largest in the world, producing one million buses, lorries and cars. Iran is also a major player in the Middle East, home to the region’s largest auto manufacturer Iran Khodro.
Iran also has an ambitious plan to increase car production to 1.6 million next year.
In a related development, managing director of Saipa Auto Manufacturing Company, Ahmad Qal’ehbani, announced that production of the popular Pride sedan has crossed the two million mark.
Production of the budget car was started by Saipa Company in 1993.
Meanwhile, domestically-manufactured vehicles which pollute the environment are also listed.
According to ISNA, Megan 2000 and Maxima sedan, both manufactured by Pars Khodro Company, emitted the least carbon monoxide.
The vehicles emitted average 0.11 gram of CO per kilometer, while cars emitted 0.09 and 0.11 grams of nitrogen oxides (HC+Nox) and hydrocarbon per kilometer respectively.
The two cars were followed by Tondar 90, Maxima Automatic, Mazda 3 Automatic, Peugeot 206 (1600 SD), Xantia 2000, Hyundai Verona and Fiat Doblo.