August 2011, No. 61

Exclusive 16th International Oil Show

Sanctions and Russian, Chinese Contractors

Establishment of specialized groups and consortiums comprising manufacturers of oil industry equipment, creation of a guarantee fund for manufacturers of equipment, and signing two agreements for cooperation between Iranian manufacturers of oil industry equipment and their Russian and Chinese counterparts have been among the most important steps taken by Society of Iranian Petroleum Industries Equipment Manufacturers in the current Iranian calendar year (started March 21, 2011).

Sirous Talari, chairman of board of directors of the Society, told reporters that 500 domestic companies are members of the Society whose goal is to increase export of technical and engineering services and more active presence in international markets during the current Iranian year.

Referring to capabilities of domestic manufacturers for meeting the needs of upstream and downstream oil industry, he added that domestic manufacturers can meet 80 percent of the needs of upstream and downstream industries.

Talari stated that in addition to increasing export capacities, the Iranian oil industry has increased production by about two million barrels of products for consumption during the 2000s.

He added that if that had not happened, Iran would not have been able to produce as much oil as it does today.

The official noted that convergence between Society of Iranian Petroleum Industries Equipment Manufacturers and Ministry of Petroleum and Iran’s geographical situation were major advantages of the Iranian oil industry.

"Structural, legal, customs, banking and trade barriers are major threats against the industry which should be removed in order to facilitate relations with other countries," he added.

Payam Khalili, deputy chairman of Society of Iranian Petroleum Industries Equipment Manufacturers’ board, noted that the Society is following two important strategies during the 16^th International Oil, Gas and Petrochemicals Exhibition.

"The firs strategy is to encourage the highest possible number of members to take part in the event to fill the void of foreign companies. We want Iranian manufacturers of oil industry equipment to fill that void at a time that Western countries have enforced sanctions against the Iranian oil industry," he added.

Kayhandokht Kavianpour, member of the board and official in charge of the international affairs department of the Society announced that new contracts have been signed between Society of Iranian Petroleum Industries Equipment Manufacturers and similar societies from China and Russia. She added that the main goal of those contracts was transfer of the latest technologies to Iran.