Iran 18% of oil revenues to upstream projects

Deputy Oil Minister for Planning and Supervision on Hydrocarbon Resources Mohsen Khojasteh-Mehr told Shana that the parliament has approved the oil ministry\'s offers which aimed at persuading private sector contractors and investors to invest in upstream sector in order to accelerate development of shared oil and gas fields. He also said that based on the provisions of this year\'s budget, 14.5 percent of oil revenues will be allocated to the oil ministry, adding that the amount will not address financial needs of the ministry to implement its developmental plans so the ministry has demanded more resources to be allocated from other income sources of the budget. Members of parliament, who are busy with ratification of the 1991 (March 2012-March 2013) fiscal year budget, also ratified new articles and paragraphs on importing and selling oil products by the private sector. Under the ratifications, the private sector is authorized to import and sell oil products provided that they observe domestic criteria on oil products and quality. The Parliament approval also allow ministries of energy and oil to a add a certain amount of money to gas bills based on bimonthly basis for insurance of potential damages arising from household sector subscribers. Members of the parliament also assigned the oil ministry to expend part of gas price taking from gas subscribers for expanding gas services to cities and villages, primarily to those located in cold areas. To this end in return for consumption of each cubic meters of gas, household consumers would pay 50 rials as duty which will be deposited in treasury for expanding gas services.