Exploration & Production

Barriers to change: Iran’s hardliners dig in

Last month’s ‘bankruptcy’ of the National Iranian Gas Co. shows the pressure the Iranian energy sector is under. Privatisation would help ease pressure – but the oil ministry is coming up against concerted domestic opposition Last month’s ‘bankruptcy’ of the National Iranian Gas Co. shows the pressure the Iranian energy sector is under. Privatisation would help ease pressure – but the oil ministry is coming up against concerted domestic opposition.
By Arron Merat 10 December 2013 0 5483
Iranian President Hassan Rouhani speaks following the deal on Tehran’s nuclear programme last month. (PA)

A push for privatisation in Iran’s oil and gas sector initiated by President Hassan Rouhani’s new cadre of technocratic oil men is being stalled by hardliners with a vested interest in maintaining the status quo.

The new administration wants to put parts of Iran’s upstream oil and gas projects and state institutions back into the “real private sector” and away from the quasi-state controlled private sector. The model is reminiscent of the post Iran-Iraq war period of reform under oil ministers Gholam Aghazadeh and Bijan Zangeneh....