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How can Iran maintain it share in global oil market?

Oil&Gas Materials 1 December 2018 10:04 (UTC +04:00)

Baku, Azerbaijan, Dec.1

By Elnur Baghishov, Leman Zeynalova – Trend:

Iran can do business and sell oil to some costumers with their currency and keep some parts of its share in world oil market, Omid Shokri Kalehsar, Washington-based senior energy security analyst, told Trend.

Energy exchange will be on Iran’s plan to keep its share in regional market as well, he added.

“In LNG market, Iran has to make huge investment if it is interested to be key player in short term and midterm. Without foreign investment and solving problems with neighbors it will not be easy for Iran to complete planned natural gas pipeline projects such as Iran-Pakistan Pipeline or Iran-Oman gas pipeline. Iran needs to play active energy diplomacy if it is interested to keep and increase its share in regional and world oil market,” noted the expert.

Kalehsar pointed out that without foreign technology and financial assistance, Iran will lose oil and gas production capacity. “All major energy firms are withdrawing from Iranian oil and gas field projects due to sanctions and Iran will be unable to increase oil and gas production capacity with domestic energy companies’ technology and financial capabilities.”

He warned that if the sanctions era continues, Iran will lose its share in world energy market and at the same time without more energy exports, it will face hard economic conditions.

Every major oil producer has a plan to take more share in world oil market and it will be not easy for Iran to take back its share post sanctions era, Kalehsar concluded.

US President Donald Trump declared Washington’s withdrawal from the nuclear deal with Iran in May 2018. Trump also announced the restoration of all sanctions against Iran, including secondary ones against other countries doing business with Iran. The United States re-introduced part of the sanctions against Iran on August 7, while the second batch of the sanctions came into effect on Nov.5.

The US government has agreed to let eight countries, including South Korea and Japan, as well as India, keep buying Iranian oil after it reimposes sanctions on Tehran. The waivers have been granted for six months.

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