TEHRAN A senior energy expert says timing is highly important in the oil and gas business, particularly in finding markets.
Afshin Javan told IRNA, in an exclusive interview, that neglecting the time factor will make the country lag behind other regional states in conquering new markets for their oil and gas products.
He said new sources of energy might replace fossil fuels in the next two decades.
With this in mind, he added, mechanisms should be found by which to make optimum use of underground resources.
He blamed domestic rules and legal regulations as impediments in the way of attracting foreign investment, saying they have kept Iran lagging behind other regional countries in terms of foreign investment in its oil and gas sector.
Javan further said that if such problems are solved Iran will have no difficulty gaining a special place in the world's oil and gas markets.
Underlining the importance of foreign investment in harnessing the country's giant oil and gas reserves, he said that given Iran's possession of 16 percent of world gas reserves and the major role it plays in the world's oil market, gaining a special place in the world's oil and gas trade is "not beyond expectation".
He said the world is moving toward an economic convergence which also requires the country to coordinate its moves with other countries to some extent.
The expert said that the most outstanding economic achievement of the country is the creation of a suitable environment for investors.
However, Javan added, careful steps should be taken in absorbing foreign investment in an effort to guarantee interests of the two sides.
Pointing to the fact that so far no specific regulations have been formulated for foreign investment in Iran's free trade zones, the expert said that one of the attractions of such zones in various parts of the world is tax exemption in those areas. But, the tax exemption case and regulations concerning formation of companies in Iran's Free Trade Zones have not been specified yet, Javan further remarked.
Elsewhere in his remarks, the senior energy expert said that buyback schemes are beneficial for Iran because it has scopes of confidence for investment and risks only concern foreign investors.
Therefore, he added, the foreign partner tries to pay careful attention to carrying out the project in order not to lose its capital.
He said expert teams are active in the country in the area of buyback contracts, adding that the scheme is undergoing the process of development as they should be updated on daily basis.
Javan said due to the consequences of the imposed war (1980-88) Iran is facing capital shortage, adding that optimal allocation of funds and strengthening of the country's financial capacity needs time. Otherwise, he stressed, the country will become dependent on foreign sources.
On the trend of investment in Iran's oil and gas sector, the expert said foreign companies show more enthusiasm in making investment in Iran than anywhere else. Although the present trend might seems slower in comparison with other countries, however, it is growing, Javan said in conclusion.
(IRNA)