Iran appoints caretaker oil minister

[News_Editor]

Iran appoints caretaker oil minister

2011-06-03 02:21:49 GMT+7 (ICT)

TEHRAN (BNO NEWS) -- Iranian President Mahmoud Ahmadinejad on Thursday appointed a new caretaker oil minister after his plans to run the body by himself was turned down.

According to the IRNA news agency, Mohammad Ali Aliabadi was named the caretaker of Iran's Ministry of Oil. He was formerly the head of the Middle Eastern country's Physical Education Organization and is a close ally of the president.

On May 9, Ahmadinejad announced that he will run the Oil Ministry after merging it with the Energy Ministry. The government also merged the ministries of Roads and Transportation with Housing and Urban Development, Industries and Mines with Commerce, and Welfare and Social Security with Labor and Social Affairs.

The reduction of ministries was made according to Iran's Fifth Five-Year Development Plan (2010-2015) in which the government is obliged to reduce its agencies from 21 to 17 to improve the efficiency of state administration.

However, the Parliament said Ahmadinejad's self appointment to the Oil Ministry was a violation of the Iranian law. In addition, Iran's presidency over the Organization of Petroleum Exporting Countries (OPEC) could be jeopardized as well.

"A caretaker or oil minister must chair OPEC, and if we continue with the current trend, Iran will certainly lose OPEC's presidency at the next ministerial meeting in Vienna, Austria," said Emad Hosseini, a senior legislator.

After the reduction of ministries, Oil Minister Massoud Mir-Kazzemi, Industry and Mines Minister Ali Akbar Mehrabian and Welfare Minister Sadeq Mahsouli stepped down from their posts.

Despite the changes, Oil Ministry official Mohsen Khojasteh-Mehr said Thursday that Iran plans to invest about $150 billion in its oil and gas sector during the next five years.

"From the total amount, $32 billion will be set aside for maintaining production and logistics, $4 billion for oil and gas exploration, $34 billion for the development of oil fields, $75bln for the development of gas fields, and $5 billion for the development of the midstream sector."

Iran, OPEC's second largest crude exporter, currently holds the presidency of the body for the first time since the 1979 Islamic revolution.

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