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TIN news:   Iran says it will not increase its gas supply to Ankara in case of a possible shortage of gas in Turkey due to resent tensions with Moscow.
Iranian Oil Minister Bijan Zanganeh has said that Tehran is only capable of delivering gas to Turkey within the framework of an existing contract with Ankara..
According to the existing contract between Tehran and Ankara, Iran is committed to deliver up to 10 billion cubic meters (bcm) of gas per year. However, the figure stood at 9 (bcm) last year.
Tensions between Moscow and Ankara intensified since Turkey shot down a Russian Su-24 bomber Nov. 24 over its border with Syria.
If Turkey’s gas demand increases Iran will not be capable to supply more than existing amount as the domestic demand in Iran is expected to increase due to the cold season, the minister said.
The remarks came during a conference in Tehran Nov. 28 presenting the country’s newly designed oil contracts, called the Iran Petroleum Contract (IPC) which is designed as a way to make up for the inefficiencies in Iran’s previous contracts (buyback).
Zanganeh further denied that the slump in oil prices may discourage foreign investors to participate in the country’s oil and gas projects and said even if the oil prices fall again, investment in Iran’s oil and gas projects is still beneficial.
The total cost for producing a barrel of oil in Iran is less than $10 dollars.
He also said that the oil projects under the new model of contracts will be implemented through tenders.
According to him several European and Asian companies including Total and Eni are interested in participating in Iran’s oil and gas projects.
Speaking about the upcoming OPEC session to be held on December 4 and the necessity to reach a consensus the minister expressed faint hope that the session may achieve a consensus over oil process.
International investors hope for fat profits as Iran is adhering to terms of a July nuclear deal reached with world’s six major powers.
Under the deal, financial sanctions imposed against Iran and its banking system over the Tehran’s nuclear program, are expected to be lifted in return for scaling down the Islamic Republic’s nuclear program.

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