Iran: Nozari unlikely to favour big oil companies

Dubai: Working in Opec’s second-largest producer could get even harder for international companies after the replacement of Iran’s oil minister on Sunday.

Increasing US pressure to keep out, domestic political wrangling and what big oil companies see as poor terms have already made Iran a risky prospect.

Those terms are unlikely to improve if President Mahmoud Ahmadinejad’s intention is to make more changes in the top brass at the ministry, analysts said.
Ahmadinejad on Sunday appointed the head of the state-owned National Iranian Oil Company (NIOC), Gulam Hussain Nozari, as caretaker minister, replacing Kazem Vaziri Hamaneh.

“The ramifications for the oil industry are not good,” said one energy analyst. “This group is very nationalist so I’d be amazed if they started giving concessions and making contracts more attractive.”

It was still not clear why Vaziri Hamaneh was replaced.

While some saw it as a step by Ahmadinejad to sweep out a minister who they said opposed the president’s planned management changes, others questioned this view, pointing out that Vaziri Hamaneh was made a presidential adviser. It was not clear, however, what power he would have in the new role.

Gulfnews