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Oil giants in anticipation of sanctions lifting for Iran return

3 August 2015 08:57 (UTC+04:00)
Oil giants in anticipation of sanctions lifting for Iran return

By Sara Rajabova

Foreign energy giants, which have been waiting for return to the Iranian market, now have a real chance to restore their activity in the Islamic Republic.

After the Vienna nuclear deal, the largest oil producers are now anticipating a removal of international sanctions on Tehran.

BP, Royal Dutch Shell and Italy’s largest oil producer Eni are awaiting a lifting of the sanctions against Iran in order to assess the feasibility of participation in oil and gas projects in the country.

"For us, Iran is a huge gas province so it would be good to be there – in conventional gas – at the right terms," Shell’s financial chief Simon Henry said in London according to Press TV.

Though Shell is interested in returning to Iran, Henry said that the company did not expect any quick, easy deals.

"Anybody who thinks that we are going to suddenly swan in and end up with great contracts that make a difference within 12 months, I think is a little naive. It's not going to be easy, it will take time," the energy news provider Platts quoted Henry as saying.

Despite Shell’s long-term activities in Iran’s upstream projects, including in South Pars, the firm pulled out of the world’s largest gas field’s Phase 13 development in 2008.

Shell also operated Iran’s Soroush and Nowruz oilfields in the Persian Gulf at a capacity of 200,000 barrels per day. An outstanding debt to the tune of $2.3 billion remains unpaid by the company to Iran since 2012.

Noureddine Vefati, Shell's spokesperson on the Middle East and North Africa, said the company is still unable to repay the debt of the National Iranian Oil Company because of the situation with sanctions.

Meanwhile, Eni’s Chief Executive Officer Claudio Descalzi said his company was interested in returning to Iran once the sanctions ended.

“Iran in terms of oil and gas is a huge and big country, very interesting, but we need to wait,” he said in a Bloomberg Television interview.

Executives from Eni and Shell traveled to Tehran in June and May to discuss new opportunities in the resource-rich country and outstanding debts.

Recently, BP Chief Executive Bob Dudley has said his company was looking for opportunities in Iran’s upstream oil industry.

BP spokesman Robert Wynn told Trend that the company is assessing the situation with Iran.

"We are monitoring the situation, and at the same time continue to comply with the sanctions. We will consider opportunities as a chance," Wynn said.

Iran and the six world powers have reached a comprehensive agreement on the country's nuclear program, which will lead to the lifting of sanctions on Iran's energy sector.

However, the lifting of sanctions depends on the verification of the International Atomic Energy Agency (IAEA) on the country's readiness to cooperate with the structures of the United States.

The Iranian government hopes for the lifting of sanctions in November of the current year.

Shell and other European energy giants such as France’s Total, Italy's Eni, and BP had built strong relationships with Iran through work in the country's oil and gas fields as well as crude oil purchases before halting them under sanctions.

Iran’s Minister of Petroleum Bijan Zangeneh said he looked to “a new chapter” in cooperation with Total as French Foreign Minister Laurent Fabius visited Tehran.

Iran wants also to unveil its new energy contracts at a conference planned for December in London.

Earlier, Deputy Oil Minister Amir Hossein Zamaninia has recently said Iran has identified nearly 50 oil and gas projects worth $185 billion up for grabs.

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Sara Rajabova is AzerNews’ staff journalist, follow her on Twitter: @SaraRajabova

Follow us on Twitter @AzerNewsAz

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