Iran opens largest Mideast gas injection project

TEHRAN, June 8 (Xinhua) -- The largest gas injection project in Mideast was inaugurated on Monday in Iran's southwestern province of Khuzestan, the official IRNA news agency reported.

The inauguration ceremony, attended by Iranian Oil Minister Gholam-Hossein Nozaria and other Oil Ministry officials, was held in the Aghajari oilfield, situated some 125 km away from Khuzestan's capital city of Ahvaz, said the report.

The project aims at "injecting two billion cubic feet of natural gas per day in order to increase the production of Iran's crude oil by 130,000 barrels a day," which, according to Nozari, "would be one of the best ways to maximize the use of oil reserves."

According to Oil and Gas Journal, as of January 2009, Iran has an estimated proven oil reserves of 136.2 billion barrels, or roughly 10 percent of the world's total proven petroleum.

Iran is OPEC's second-largest exporter after Saudi Arabia, and the fourth-largest exporter of crude oil worldwide after Saudi Arabia, Russia and Norway.

Iranian president submits $89-billion budget

TEHRAN, Jan. 27 (Xinhua) -- Iran's President Mahmoud Ahmadinejad on Tuesday submitted to Majlis (parliament) an 890-trillion-rial (89-billion-U.S. dollar) budget bill for the next Iranian calendar year (to start on March 21), the official IRNA news agency reported.

Noting that "the government has made great efforts to reduce the country's dependence on oil resources," Ahmadinejad said the falling oil prices have "created an opportunity for a structural change in the budget and decreasing dependence on oil resources."

"While economizing the expenses in the budget bill, the government has allocated more expenditures to health and treatment, water, agriculture, environment and natural resources in the next year budget bill," he was quoted as saying.

The budget is based on global oil prices of 37.5 dollars per barrel, much lower than the high of nearly 147 dollars seen in the middle of 2008.

The Iranian economy is dominated by oil and gas exports which constituted 70 percent of government revenue as of 2008.

High oil prices in recent years have enabled "Iran to amass nearly 80 billion U.S. dollars in foreign exchange reserves." Yet the increased revenue has not eased economic hardships, which include double-digit unemployment and "inflation which climbed to 26 percent as of December 2008," said the report.

Iran had the highest annual inflation rate among Middle East countries, according to the report of the Central Bank of Iran (CBI) released in November.

CBI chief Mahmoud Bahmani said on Saturday that the country would reduce the inflation rate in the following months.

Iran says GECF to form executive committee

TEHRAN, Jan. 24 (Xinhua) -- Iran's OPEC Governor Mohammad Ali Khatibi said here Saturday the newly-found Gas Exporting Countries Forum (GECF) will soon form an executive committee, the semi-official Fars News Agency reported.

"The high level committee of the forum has also issued its articles of association which was initially proposed by Iran," said Khatibi.

Founded in Tehran in 2001, the now 15-member GECF groups Russia, Iran, Qatar and other leading gas producers, which account for some 77 percent of the world's gas reserves and 48 percent of production.

The member states of GECF group include Algeria, Bolivia, Brunei, Venezuela, Egypt, Indonesia, Iran, Qatar, Libya, Malaysia, Nigeria, the United Arab Emirates, Russia, Trinidad and Tobago.

The forum's role was strengthened this year as Russia, the world's largest gas producer, intensified its efforts to tap energy globally and revealed its increasing interest on the potential price-control structure similar to the Organization of Petroleum Exporting Countries (OPEC) while denying it will be a gas cartel.

In October last year, representatives from Russia, Iran and Qatar, which in total account for 56 percent of world's natural gas reserves, met in Tehran and agreed to establish a "gas troika" for joint exploration and production, raising the curtain over the loose group's further development.

As stipulated in the charter, an executive office and a Doha-based secretariat of the organization will be established, with a secretary general to be elected during the next forum.

Iran, Armenia to finance energy projects in Armenia

TEHRAN, April 14 (Xinhua) -- Visiting Armenian Energy Minister Armen Movsisyan discussed with Iran's Minister of Economy and Finance Shamseddin Hosseini, the ways to finance energy projects by Iran in Armenia, the official IRNA news agency reported on Tuesday.

"The Islamic Republic of Iran is willing to cooperate with Armenia in developing infrastructure of the former Soviet republic," said Hosseini, expressing hope that "the ground for expanding two countries economic and trade cooperation would be prepared in near future."

For his part, Movsisyan appreciated opening up of credit line for Armenia by the Export Development Bank of Iran, the report said.

In an official two-day visit, Armenian President Serzh Sargsyan, heading a high ranking political and economic delegation, arrived in Tehran on Monday for multipurpose talks with Iranian officials.

Some economic contracts including a memorandum of understanding on rail transport cooperation between the two countries are expected to be signed during his visit.

In November 2008, Iran and Armenia inked ten agreements on security, political and economic cooperation in Tehran. 