Iran's oil minister draws a crowd in Vienna

FT.com

One of the trickiest questions facing Opec is how it will accommodate increased production from Iran when (and if) sanctions are lifted.

A deal with western powers over the country's nuclear programme could be reached by the end of the month, paving the way for Iran's full return to the international oil market, writes Neil Hume at the Opec meeting in Vienna. But its by no means certain a deal will be struck. And even if an agreement is reached how and how long it will take to untangle sanctions that have crippled the country's economy and oil industry is still unclear.

So it was no surprise to see Iran's oil minister Bijan Zanganeh mobbed by the Opec press pack at this morning's open session. In fact he was arguably the most popular man in the room this morning (even more popular than Saudi Arabia's veteran oil minister Ali Naimi, the cartel's defacto leader).

The FT's oil & gas correspondent Anjli Raval managed to pick up some of his comments.

Here's what Mr Zanganeh had to say:

Production and quotas:

We don't need any decision from Opec side about returning to market, it is our right and we have been limited by sanctions. We will return to market with quota we had before.

I wrote a letter to Opec member countries and described this issue that we are returning to the market and considering this issue [they should] to maintain their market situation. It is our right to return to the market.

The issue is to achieve traditional market share of Iran in the oil market. I think immediately it means...within 6-7 months [we can increase] by 1m barrels for export.

Note: Sanctions aimed at reining in Iran's nuclear activities have reduced its crude output to about 2.8m barrels a day, from 3.6m b/d in 2011. Exports from the Opec producer stand at about 1.1m b/d, half their pre-sanctions level.

Attracting international investment:

We have tried to present a new framework that can be more attractive for investors and consumers both. We will present it officially in September or after. It depends on the lifting of sanctions.

On prices:

We are not satisfied with this level of price. But Opec is an organization and we will deal with each other to reach agreement and make a consensus between Opec members. This level of price… means it is not good situation for long term and medium term for both investors and consumers too because the lack of investment will create a lot of difficulty.

A price around $75 is a fair price for both sides, consumers and producers.