Iran would require more investment in energy
By Aygun Badalova
Iran would require lots of investment in order to become a major
player щn the world energy market, Vesa Ahoniemi, an independent
energy analyst believes.
“Iran would require a lot of new investment, including in the
country's own pipeline network,” Ahoniemi told Trend.
Iran and the P5+1 have reached a nuclear deal after more than a
decade of on-off negotiation, granting Tehran sanctions relief in
exchange for curbs on its nuclear program. The agreement aims to
limit Iran's nuclear work for more than a decade in exchange for
the gradual suspension of sanctions that have slashed Iran's oil
exports and crippled its economy.
Sanctions on Iran are expected to be eliminated by the end of the
current fiscal year.
“Until the sanctions are lifted financing will be impossible and
even thereafter I suspect oil will receive a lion's share of inward
foreign investment,” Ahoniemi said.
Iranian oil production has fallen by over 1m bpd since the
imposition of the latest round of sanctions at the start of
2012.
Earlier Iranian authorities said that the country’s oil supply
could double from the current 1.2 million barrels per day to 2.3
million barrels if the sanctions are lifted.
Iran repeatedly stated that OPEC member states should make room for
Iran to allow it to increase the export and called for returning to
the individual quotas for oil production for the cartel’s
members.Currently, OPEC’s quota for oil production is 30 million
barrels per day.
According to the report British economic research and consulting
company Capital Economics, a macro-economic research company
estimates that Iran should be able to regain its pre-sanctions
level of around 4m bpd relatively quickly.
The report said that resuming oil output for Iran is possible in
six to 12 months, but it will take a considerably longer period of
time to reinvigorate Iran’s ageing infrastructure.
"Admittedly, Iran’s terms for Western oil companies are reportedly
significantly less generous than other countries," the report,
obtained by Trend had said.
"But it is reviewing them and companies are unlikely to pass up on
the chance to develop one of the last remaining reserves of easily
accessible oil, especially as Iran should be a relatively stable
environment to invest in Iran".
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