Azernews.Az

By Sara Rajabova

Iran will earn $54.5 billion in oil revenues annually if the U.S.-led sanctions imposed on the country's energy sector are lifted, Iran's Oil Minister Bijan Namdar Zanganeh said, Press TV reported.

Zanganeh said that the country must try to have the sanctions lifted in order to speed up the process of the country's development.

He said once the sanctions are removed, Iran's annual oil export revenues will hit $54.5 billion, of which $14 billion will be allocated to filling the country's annual budgetary gaps.

Zanganeh also said that more than $800 billion in investment in the petroleum industry is possible over eight years.

He said that Iran's National Development Fund (NDF) has so far been tapped for more than $14 billion to finance oil, gas and petrochemical projects.

According to Zanganeh, the new administration would invite domestic and foreign investors as Iran's international status improves.

The minister has repeatedly said Iran's oil production must exceed four million barrels per day.

He also said that the ministry is currently negotiating with European companies over investment in the country's energy projects. He, however, refused to comment on possible negotiations with American companies.

Mehr news agency reported recently that Iran's oil ministry and the Royal Dutch Shell have started a new round of talks for settling the multinational company's debts to Iran.

According to reports, Shell's debts to Iran amounted to $2.3 billion.

Zanganeh has formed a special workgroup to follow the talks.

Shell lost money trading Iranian crude in 2012 shortly before a European Union embargo and still owes $2.3 billion to Tehran for oil purchases, Reuters reported.

Shell suspended all trade with Iran before last June but failed to settle its accounts with the National Iranian Oil Company (NIOC) ahead of the embargo, which was imposed as part of the West's standoff with Iran over Tehran's nuclear program.

The United States and the European Union imposed sanctions on Iran's oil and financial sectors with the goal of preventing other countries from purchasing Iranian oil and conducting transactions with the Central Bank of Iran.

Iran's crude oil is subject to a European Union embargo that started on July 1, 2012, which also bars EU insurance firms from covering Iran's exports.