September 29, 2002	Sunday	Rajab 21, 1423

NICOSIA, Sept 28: The oil industry in Iran, the second largest Opec exporter, is undergoing rapid change at both operational and management levels, the Middle East Economic Survey (MEES) reports in its Monday edition.

The operational changes result from the National Iranian Oil Company (NIOC) having to maintain production in aging oilfields, the industry newsletter says.

The management changes reflect an ongoing domestic political struggle in Tehran, which has seen Oil Minister Bijan Zanganeh and his buyback programe targeted by conservative clerics with a view to hampering economic reform.

MEES estimates show that crude oil exports fell away to 1.81 million barels per day (bpd) in June from 1.97 million bpd in January.

Iran’s oil ministry is struggling to maintain its production and estimates that capacity is falling by 200,000-300,000 bpd a year in existing NIOC-operated fields, the Cyprus-based weekly notes.

MEES lists a series of key changes under political pressure from the government and political currents within the ministry.

These include Hadi Nejadhosseinian, a former deputy oil minister, who is to take over from Kazempour Ardebili as deputy oil minister for international affairs, MEES says.

Seyed Mehdi Hosseini, a former deputy oil minister for international affairs, has been offered the job of deputy managing director of NIOC and managing director of NIOC International.

MEES quoted a view in the international oil community that political pressure on Mr. Zanaganeh has led him to pursue a ‘divide and conquer’ approach to internal appointments, limiting the authority assigned to any given role and relying increasingly on newer and less experienced people in some positions. —AFP