Dr Carole Nakhle
Given its substantial oil and gas resource potential, Iran must be on the radar screen of every major international oil company. Nevertheless, with the exception of Chinese and Russian players who are the only international oil companies currently involved with developing Iranian oil fields, major oil companies have shied away from Iran.
This is largely explained by a series of sanctions, mainly targeting the banking and energy sectors and imposed in recent years by the United States, the United Nations, and the European Union, that have limited investment in Iran.
The big oil companies, however, are keen to return to Iran if the international community and the Islamic Republic reach a long-term deal on its nuclear program and the sanctions are lifted buy accutane online cheap accordingly, and if Iran offers more lenient contractual terms.
For Iran, foreign investment, capital, and technology are all needed to reverse the country’s oil production decline and expand its export capacity.
The deadline for reaching a deal is November 24, 2014. While the outcome of negotiations between Iran and the six world powers known as P5+1 (China, France, Germany, Russia, the UK, and the United States) remains uncertain, a resolution of the current stalemate would have significant geopolitical implications. But it would also bring important changes to oil and gas markets, with serious effects on major consumers and producers, especially in the Middle East.
Published by Carnegie Middle East Center