IRAN - Dec 11 - President's Fourth Oil Minister Nominee Given Nod.

Iran's parliament gives a clear vote of confidence to Kazem Vaziri-Hamaneh as oil minister, endorsing the fourth nominee from Pres Mahmoud Ahmadi-Nejad. Vaziri-Hamaneh said he would give priority to "domestic capability", casting further doubt on Iran's ability to attract the foreign investment analysts say is needed to continue daily production of about 4mn barrels. The nomination marked a political retreat for Ahmadi-Nejad, as Vaziri-Hamaneh, caretaker minister for four months, is a ministry insider uneasy with the President's populist slogan of fighting an "oil mafia". "The oil industry has many talented managers who will continue to run the ministry as they have done for 20 years without one moment's halt in production and distribution", he told parliament. Of 259 parliamentarians, 172 voted for Vaziri-Hamaneh, with 53 against and 34 abstaining. Proponents argued that his 32 years' experience in the ministry, mostly in senior management, combined with piety, which is important to Ahmadi-Nejad, made him more suitable than previous nominees. In a speech to parliament, Vaziri-Hamaneh supported using the Oil Stabilisation Fund, which absorbs windfall oil revenues, to develop oil and gas fields "speedily" and so raise production. The new minister outlined a path respecting deputies' desire to reduce foreign influence while maintaining that windfall funds should not be diverted into current spending. "If we take over financial management [from oil majors] and use the OSF as the best way of investment, the country's industries will be revived and equipment can be built domestically", he said. Speaking as Tehran remained enveloped in its heaviest traffic smog for years, he called for a reduction in energy consumption, which he said was 5.3 times the world per capita average. As acting oil minister, Vaziri-Hamaneh criticised the "buy-back" system that has governed foreign companies' involvement in Iran's oil and gas industry for eight years and disliked by oil majors, although he has not proposed an alternative. "We are reviewing buy-back and must think about a system that can be trusted both by people and government", he told the FT. Vaziri-Hamaneh added it was "not only the oil ministry which decides about projects". But many deputies are convinced Ahmadi-Nejad, who took a conciliatory tone when he promised to abide by parliament's decision, has no choice but to compromise. "It's post-election and he should moderate his slogans", said one conservative.