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Iran to privatise energy sector

Iran is open to foreign companies investing in its energy sector, the country’s deputy oil minister said.

The country is executing a plan to sell 80% of its major state-owned companies to boost the economy and stock values, following a 2006 order by Supreme Leader Ayatollah Ali Khamenei.

At least three-quarters of the Iranian economy is controlled by the state.

“Many companies that belong to the government now will become private very soon,” Azizollah Ramazani, deputy Iranian oil minister, said yesterday in a Bloomberg interview.

“I think the Iranian energy sector in very interesting for foreign companies, including American companies.”

The National Iranian Gas Company is also open to potential ventures with private groups, said Ramazani, who is also managing director of the state-owned gas producer.

“We are ready to negotiate partnerships,” he said.

Iran plans to invest $50 billion during the next 10 years on LNG projects.

The country plans to export as much as 8 million tonnes by 2012, Ramazani said.

Iran is seeking to develop its mineral assets amid United Nations sanctions and the threat of military action over what Western nations say are its efforts to develop nuclear weapons.

Some analysts have criticised President Mahmoud Ahmadinejad, who was first elected in 2005 and started his second term in August, for failing to accelerate the privatisation process.

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