Iran in talks with Shell on oil investment

Oil&Gas Materials 22 May 2016 12:01

Baku, Azerbaijan, May 22

By Fatih Karimov - Trend:

Iran's Petropars is negotiating with Royal Dutch Shell for investment in the country's oil projects, Managing Director of Petropars Mohammad Javad Shams said.

Currently, the parties are negotiating the technical issues, Shams said, IRNA news agency reported May 22.

Petropars is one of Iran's largest oil contractors and the main contractor at the South Pars natural gas field. The state-owned company, which was targeted by the US sanctions in 2010, played a key role in securing foreign investment for the field, the largest gas field in the world, which lies in the Persian Gulf and is shared with Qatar.

Petropars has held talks with various domestic and foreign companies for investment in oil projects within new oil contracts (IPC), Shams said.

He further said that Petropars has recently signed a cooperation document with a German company, however he didn't name the firm.

Foreign companies, including Royal Dutch Shell are studying Iran's market for investment, he added.

The implementation of Phases 12 and 19 of the South Pars gas field, which are planned to be completed by March 2017, shows Petropars' capabilities in oil and gas sector, he said.

Petropars has already held several meetings with its German and French partners on development of oil fields and construction of refineries, Shams said earlier.

"We expect a rise in entrance of international companies to Iran during the post-Joint Comprehensive Plan Of Action (JCPOA) era," he added.

However Shams noted that the international companies' entrance into Iran will take half a year's time because they need at least six months to have a field study on Iran's projects.