TEHRAN, Iran, Dec.28
Trend:
Iran's oil price discount provided to the customers can still bring profit to the country, while the officials need to act with caution to prevent possible risks, former advisor to Iran's Foreign Minister, professor of Energy Policy in Department of Energy Engineering at Sharif University of Technology Abbas Maleki told Trend.
"For example, the oil production in Iraq costs $3 to $4 per barrel, while the oil price is $64, which means $30 profit. However, in Iran, due to the complexity and bureaucracy, the cost of oil production is $10 per barrel, so, if the estimate oil sale price is $60, Iran's profit makes $50 per barrel," said the professor.
"If it is possible to offer a discount of $1, it would not be a mistake, so officials managing the oil industry should allow the oil sale at any price if they can," Maleki added.
"Iran had a chance to work with international companies under Joint Comprehensive Plan of Action, but it took us three years to form contracts, while we should act fast. Minister of Industry, Mine and Trade is allowed to sign mine contracts with other countries, and similar opportunities shall be given to the oil minister to make the sector profitable," said the professor.
Following the United States withdrawal from Iran’s 2015 nuclear deal and re-impose of US sanctions against oil sale, Iran's trade with other countries have been deeply effected.