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Opec: Iran says ceiling without quotas ‘means nothing’

02 Jun 2016 11:12 (+01:00 GMT)
Opec: Iran says ceiling without quotas ‘means nothing'

Vienna, 2 June (Argus) — Iran's oil minister Bijan Namdar Zanganeh said a crude target output ceiling "without a country quota has no meaning," ahead of the meeting of Opec oil ministers in Vienna today. But he is not opposed to a crude target output ceiling, he added.

Zanganeh said yesterday that Iran wants Opec to eventually reinstate a production quota system, but said it is too soon to expect such an agreement.

Asked if Opec would agree an output ceiling today Zanganeh said: "We are open to discuss everything. And, as I said, a ceiling without country quotas means nothing."

Iran is now producing 3.8mn b/d and Zanganeh said production will increase until "we get back our rightful share of the market". "Thankfully, the way we acted did not have any negative impact on the oil market… these days you see that the oil price is no longer heading downward," he added.

"The short-term target is to reclaim our share of the market. In the long-run, for the 6th development plan, our target is 4.8mn b/d crude production capacity. With 1mn b/d condensate capacity, this will rise to 5.7mn b/d."

Asked if any decision has been made on support for the new Opec secretary general, Zanganeh said: "We actually have only two candidates on the table: Nigeria and Indonesia. The others have no chance. These two are qualified and the majority we will follow. We will go along with the majority. We support firstly the Nigerians because we promised to support them about 10 months ago, however it does not mean we are against Indonesia. Indonesia is our friend and we want to support them as well."