This notwithstanding, as far as the local market’ prospects are concerned , the most salient feature we should be witnessing is that , oil would still remain the economy’s kingpin . Despite honest intentions , so – far diversification has not proven an easy task . Efforts maintained to achieve that , have had some measure of success , but Oil shall continue , being the mainstay of the Iranian economy , representing an average of 83% of total exports in the 2nd & 3rd Quarters of 2002 . Until now , gas has been consumed domestically , but exports should commence before the end of 2002 . Production cuts implemented by OPEC members in January are still in force , and this is likely to mean lower oil revenues in 2002 / 03.
Within the oil and gas sector , progress is being made and potential foreign investment into the sector should guarantee that this continues over the forecast period . Despite the lack of rewards offered by the National Iranian Oil Company ( NIOC ) Regarding buy-back agreements , having been somewhat of a dissuasive factor for foreign companies looking for projects in Iran , projects are everywhere and demand for participation is all the rage.