December 28, 2004
©2004 IranMania.com
LONDON - Iran will move a step closer to establishing its much-publicized oil exchange next week, when the Oil Ministry and the Ministry of Economic Affairs and Finance are set to sign a memorandum of understanding (MoU), which will set the ground for the high-profile initiative.
Hossein Talebi, the National Iranian Oil Company's director for information technology affairs, told Fars news agency that the project would enter the executive phase immediately after the MoU is signed.
The official further said that petrochemicals, crude oil and oil and gas products will be traded at the petroleum exchange.
"The oil exchange would strive to make Iran the main hub for oil deals in the region," he said, adding that most deals will be conducted through the Internet.
Talebi said the bourse could also help develop petrochemical industry.
Iran announced in September its petroleum exchange will become operational by March 2006.
Experts from International Petroleum Exchange (IPE) and the New York Mercantile Exchange (NYMEX) have reportedly confirmed the feasibility of the project.
Mohammad Javad Assemipour, who is in charge of implementing the oil exchange project, told ILNA that the Ministry of Economic Affairs and Finance, some brokerage firms and the Tehran Stock Exchange will set up a consortium to contribute, in collaboration with foreign companies, to the establishment of Iran's oil exchange. He said the petroleum exchange could help create further transparency in the Oil Ministry's performance and help attract more foreign investments in national energy industries.
The proposal was first put forward in the beginning of the Third Development Plan (2000-2005) and became a national project only last year. Relevant technical studies are still underway.
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