TEHERAN: The Shah of Iran said today [Jan 24] that if Western oil companies did not accept the demands of the Organisation of Petroleum, Exporting Countries (OPEC), “we will have to follow the example of Venezuela”.

Venezuela last month increased its tax on the revenue of oil companies operating there from 52 to 60 per cent.

The Shah gave a three-hour Press conference, his first in 12 years, as an OPEC team and negotiators for 15 major oil companies were discussing the OPEC demands for higher taxes and posted prices for crude oil exported by Iran, Iraq, Kuwait, Saudi Arabia, Abu Dhabi and Qatar. The companies’ counter proposals include stable prices for all crude oil for five years plus annual moderate price adjustments in the light of world inflation. They have rejected further increases in the tax rate structure, retroactive payments and compulsory investments and insist that any settlement should include the other OPEC members – Libya, Algeria, Indonesia and Venezuela.

… The Shah said … “If they insist on a global deal, we are going to do the same thing as Venezuela has initiated or legislated. We can do that if this is what they want.” — Agency

Published in Dawn, January 25th, 2021