Oil Trapped by Trust Friendship and Sales Decline

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Oil trapped by cronyism and sales decline

The Ministry of Oil, as the most important economic apparatus of the country, plays a decisive role in providing foreign exchange resources, developing infrastructure, and preserving national interests. However, the recent performance of the Ministry of Oil and Oil Minister Mohsen Paknejad has faced widespread criticism in the areas of management, transparency, and efficiency. The three main axes of this criticism include a lack of transparency in appointments, the complex situation of oil trustees, and the decline in oil sales during his management.

Non-transparent appointments without clear criteria for competence

One of the most significant criticisms directed at the Ministry of Oil is the non-transparent process of appointments in key management levels. In recent months, some appointments have been made without providing a clear explanation regarding the selection criteria, professional backgrounds, or the evaluation process of managers. This issue has raised concerns about the return of closed management circles and the strengthening of non-specialist relationships within the oil industry.

Critics believe that in a situation where the oil industry faces the most complex technical, sanction-related, and financial challenges, the appointment of managers should be based on meritocracy, professional experience, and an executive track record, not political and factional considerations. The lack of transparency in this process, in addition to reducing the trust of industry experts, can also affect the productivity and major decision-making of the ministry.

Additionally, many experienced and specialized personnel in the oil industry have warned about the sidelining of professional staff and the increase in non-competitive appointments, a matter that could lead to the weakening of human capital in this strategic industry.

The dire situation of oil trustees and the non-return of billions of dollars in resources

Another serious point of criticism is the ambiguous situation of oil trustees and the foreign exchange resources that have not returned to the country. In recent years, part of Iran’s oil sales has been conducted through intermediary networks and companies known as trustees, a structure formed due to sanction conditions, but which has now become one of the vulnerable points of the country’s oil economy.

Reports and expert comments indicate that billions of dollars of oil revenues in these trustee cycles have not been settled or returned to the country. However, the Ministry of Oil has not yet provided a transparent explanation regarding the status of these resources, the oversight mechanism over trustees, or the legal or managerial actions to recover these funds.

The ambiguity in the performance of these networks has raised concerns about corruption, inefficiency, and weak oversight. Critics emphasize that the Ministry of Oil must publish detailed reports to inform the public and oversight bodies about the details of these cases and be accountable for safeguarding national resources.

Decline in oil sales during Paknejad’s ministry

The third axis of criticism is the decline in oil sales and the drop in oil revenues during the current management of the Ministry of Oil. While the government has repeatedly emphasized increasing oil exports and neutralizing sanctions, some data and international analyses indicate a relative decrease in Iran’s oil exports in recent months.

Experts attribute part of this situation to weaknesses in energy diplomacy, lack of coordination in export policy, and a decrease in Iran’s competitive power in regional markets. On the other hand, the lack of effective investment attraction and the slow development of joint fields have also negatively impacted the country’s export capacity.

Critics believe that the Ministry of Oil has not been able to take advantage of the existing opportunities in the global energy market effectively and has become mired in managerial routine in some areas. Continuing this trend could put additional pressure on the country’s budget and foreign exchange resources. Today, more than ever, the Iranian oil industry needs transparent, specialized, and accountable management. Non-transparent appointments, ambiguity in the oil trustees’ cases, and the decline in oil sales are three serious challenges that have raised fundamental questions about the performance of the Ministry of Oil. It is expected that the Ministry of Oil, instead of remaining silent or speaking in generalities, will rebuild the trust of public opinion and the specialized body of the oil industry by providing detailed reports, clarifying performance, and reforming management procedures.

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Saeed Aganji is a journalist and researcher specializing in Iranian affairs. He has served as the editor-in-chief of the student journal "Saba" and was a member of the editorial board of the newspaper "Tahlil Rooz" in Shiraz, which had its license revoked in 2009.
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