Italian investors seek to invest in Iran's oil, gas sector

Oil&Gas Materials 14 September 2014 12:11 (UTC +04:00)

Tehran, Iran, September 14

By Milad Fashtami - Trend:

An Italian firm has started its negotiations with the officials of Iran's southern Fars province for making possible investments in the province's oil and gas projects.

The Italian firm wants to indirectly invest in the projects, Iran's IRIB News Agency reported on September 14.

The Italians also want to provide the Iranian side with their technical knowledge.

A delegation consisting of European investors is currently in Fars province to examine investment opportunities.

Head of Trade Promotion Organization of Iran Valiollah Afkhami-Rad said on August 31 that Tehran needs to absorb foreign investment to boost its production and exports potential.

"Foreigners' investment in Iran will transfer new technologies to the country," he added, Iran's IRNA News Agency reported.

The Trade Promotion Organization of Iran intends to hold exhibitions in foreign countries to encourage foreign companies and businessmen to invest in Iranian projects.

Behrouz Alishiri, the head of Organization for Investment, Economic and Technical Assistance of Iran said in May that Iran's government is working to prepare a comprehensive incentive package for attracting foreign investments by end of the coming summer.

He added that the package includes all sectors of economy such as free trade zones, communication networks, financial and monetary systems, social and health sectors, etc.

One of the striking developments in Iran in recent months has been the large external capital inflows, mostly in the form of foreign direct investment (FDI), thanks to its initial progress in macroeconomic stabilization, improved investment regime, and progress in nuclear negotiations with the five permanent members of the UN Security Council - (Russia, China, the U.S., France, Britain) plus Germany.

Iran's deputy economy minister Mohammad Khazaei said on August 31 that the number of foreign investment delegations has increased from 65 to 300 over the past year, Iran's Mehr news agency reported.

"Some of the delegations represented more than 100 companies," he added.

"However, a majority of the delegation has not concluded any contract with the country," he noted.

According to the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment (FDI) flows to the Islamic Republic of Iran exceeded $3 billion in 2013.