Dow Jones – UK

By: Sally Jones and Hashem Kalantari
Tuesday 15 November 2005


Outcome for Iran Oil Min Nominee Uncertain-Sources

LONDON (Dow Jones)--Iran's President Mahmoud Ahmadinejad nominated a National Petroleum Company manager as oil minister on Tuesday in his third attempt at winning support for a candidate.

Political and industry officials from the second largest producer in the Organization of Petroleum Exporting Countries say the nominee, Mohsen Tasalouti, has more relevant experience than did the president's previous choices for the top oil post.

But the officials remain skeptical that Tasalouti will manage to win crucial support from the Iranian parliament, or majlis.

"He seems to have sporadic support in the majlis, so it is all a bit more positive," says Ali Ghezelbash, director at Tehran-based Atieh Bahar Consulting. "But I am still not sure if he can go the whole way."

Iranian oil ministry officials say that despite Tasalouti's background in Iran's energy business - he has worked for 11 years at the National Petrochemical Co, NPC - it is not yet clear whether the 51 year old will convince parliament he is the right man for the job.

"There is no doubt that this guy has some good solid experience in petrochemicals, but whether he has the ability to be a minister is another issue," said an oil ministry official.

Tasalouti, who has a master's degree in architectural engineering, also had various construction jobs at Iran's interior ministry.

Parliament is expected to discuss the nomination over the next week.

Tasalouti, reported in Iranian press to be a relative of Ahmadinejad, is the Iranian president's third nominee after the previous two failed to garner support.

The president's previous nominee, Sadegh Mahsouli, withdrew from the running last Wednesday before the parlimentary vote, because he lacked political support.

Iran hasn't had an oil minister since Ahmadinejad came to power in August, and acting Oil Minister Kazem Vaziri, who was appointed then, has represented the country in OPEC.

Iranian oil officials have been quick to play down suggestions among industry players that the oil ministry is in a crisis because of the delay in appointing an oil minister.

But politicians have criticized the country's new conservative president in recent weeks. Defeated presidential candidate Ali Akbar Hashemi Rafsanjani decried the delay.

Atieh Bahar's Ghezelbash says the oil ministry is functioning in the absence of a minister. But he adds that "nothing new is happening, no new oil and gas contracts are being signed."

A source who has worked very closely with Tasalouti, at Iran's NPC, believes the latest nominee would work hard to woo foreign investment into Iran. "His track record at NPC shows he is a man who is keen to work closely with foreign companies," he says.

Gaining speedy access to foreign technology and capital is essential if Iran is to meet its important oil and gas production targets in coming years.

Tasalouti is currently managing director of the special petrochemical zone organization in southern Iran at Bandar Imam.

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