Iran MP concerned about oil minister nominee: report

TEHRAN (Reuters) - The head of the Iranian parliament's energy commission has expressed concern about the proposed new oil minister's qualifications and warned of "irreversible damage" to the industry, a newspaper reported on Saturday.

Hamid Reza Katouzian, a conservative MP, made clear his view that President Mahmoud Ahmadinejad's nominee, current Commerce Minister Massoud Mirkazemi, lacked the right background for the top oil job. Iran is the world's fifth-largest crude exporter.

"Any person unfamiliar with this field who would step into this ministry would need at least two years to get familiar with its rudimentary concepts ... and during this period there would be irreversible damage to the industry," he was quoted as saying.

His comments, carried by business daily Sarmayeh on Saturday, were initially reported by the semi-official Mehr News Agency on Friday.

In a surprise move, Ahmadinejad on Wednesday nominated Mirkazemi, an industrial engineer, as oil minister in his new cabinet following June's disputed presidential election. Mirkazemi has little known experience in the oil industry, but is seen as an ally of the hardline president. Parliament must approve Ahmadinejad's 21-strong cabinet and some lawmakers have suggested they are likely to reject several nominees.

Katouzian said he was worried that with Mirkazemi in the post, it would change the Oil Ministry's "development outlook into a commercial one."

Defending his cabinet line-up, Ahmadinejad said on Thursday Mirkazemi was a skilled manager: "His presence at the Oil Ministry will further promote the status of our oil industry as a strategic commodity of our nation," he said.

In 2005, the president failed to get his first three choices for oil minister appointed because of parliament's opposition.

Oil exports account for most of Iran's state revenue. The next minister faces the challenge of boosting oil and gas output under U.S. and U.N. sanctions, imposed because of the dispute over Iran's nuclear program.

Ahmadinejad is expected to face a tough battle to win parliament's approval for his new cabinet. Voting is due to start on August 30.

The outcome will be a test of Ahmadinejad's grip on power after his disputed re-election in June led to the worst unrest since the 1979 Islamic Revolution and exposed establishment divisions. At least 26 people were killed in street protests.

(Reporting by Zahra Hosseinian and Hashem Kalantari; Writing by Fredrik Dahl; Editing by Keiron Henderson)