Implementation of Geneva deal will pave way for return of international oil companies to Iran: MP

Photo: Implementation of Geneva deal will pave way for return of international oil companies to Iran: MP / Politics

Baku, Azerbaijan, Jan.17

By Fatih Karimov - Trend: The implementation of the Geneva deal will pave the way for international oil companies to return to Iran's oil market, Iran's IRNA news agency quoted Iranian MP Jalil Jafari as saying on Jan. 17.

The deal will also lead to a rise in foreign investments in the country, he noted.

Iran enjoys huge oil and gas reserves. So, large foreign oil companies are willing to invest in Iran's oil and gas sector, he added.

In November, Iran and the P5+1 group reached an interim agreement whereby Iran would freeze part of its nuclear program in exchange for limited ease of sanctions which have hurt its economy.

Giant oil companies such as Shell and Total need to use the full capacity of Iran's domestic manufacturers in order to carry out projects in the country's oil and gas sector, Deputy Oil Minister Emad Hosseini said on Jan. 14, the Mehr News Agency reported.

"Domestic manufacturers also need to boost the quality of their products in order to meet global standards" he explained.

"The cost of oil and gas projects has been increased by three to four times in the past few years," Hosseini said.

He made the remarks at the sideline of the 10th edition of Kish International Energy Exhibition.

Iran on Dec.4 named seven Western oil companies it wants back in its vast oil and gas fields if international sanctions are lifted and said it would outline investment terms in April next year, Reuters reported.

Iranian Oil Minister Bijan Zanganeh named the seven in order: Total of France, Royal Dutch Shell, Italy's ENI, Norway's Statoil, Britain's BP and U.S. companies Exxon Mobil and ConocoPhillips.

Iran has the world's fourth-largest proved national reserves of oil - most of it cheap to produce - and is home to the biggest proved reserves of natural gas, some 18 percent of the global total.

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