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Iran expects to seal energy contracts worth more than $20 billion over the next year despite the threat of fresh US sanctions as it pushes ahead with negotiations with international oil companies. including Royal Dutch Shell. the Anglo Dutch group. and Russia`s Rosneft.
Iran`s Deputy Oil Minister for International Affairs Amir Hossein Zamani-Nia told the Financial Times that the Islamic Republic was negotiating 28 provisional agreements with foreign oil companies.
They include Maersk Oil and Rosneft to develop the oil layer in South Pars — the world`s largest gas field — and with Russian firms. Lukoil. Gazprom and Zarubezhneft to develop oilfields. including Paydar Gharb. Abteymour and Mansouri.
`Any international oil company that you know. we are negotiating with . . . except the Americans.` he said. adding that Tehran anticipated the conclusion of contracts worth more than $20 billion over the next 12 months.
Zamani-Nia contended there was `no tangible change in international oil companies` determination [to invest] and the speed of their negotiations with Iran` since (US President) Donald Trump refused to certify Tehran`s nuclear deal with world powers earlier this month.
The US president`s decision meant Congress will decide before the end of the year whether to reimpose nuclear-related sanctions on the Islamic Republic.
The energy sector has been one of the main beneficiaries of the 2015 accord. under which Tehran agreed to modify its nuclear activities and many sanctions on the country were lifted.
Iran has more than doubled its oil exports to about 2.4 million barrels per day since the accord came into effect in January 2016. and is seeking further investment in the sector to upgrade aging infrastructure and develop fields.
European signatories to the agreement — the UK. France and Germany — have been lobbying to prevent the US from killing the deal and consider foreign investment as critical. Russia and China. which also signed the deal. are also supportive of the accord.
France`s Total signed a $4.8-billion contract in July to develop the South Pars Gas Field and has said it remains committed to the project as long as international regulations allow it to do so.
Iranians and industry observers are now keenly watching whether Shell will sign a deal to develop one of the giant oilfields in southern Iran.
The company inked a provisional agreement in December to conduct studies on oilfields of Azadegan and Yadavaran in southwest Iran. as well as the Kish gas fields in the Persian Gulf.
`We definitely need modern technology. Iranian companies are not able to develop fields without partnerships with foreign companies.` said Zamani-Nia.
`There is no shame bigger than for Iran. with its huge oil and gas resources. to have such low volumes of oil and gas production.`
While Iran is looking to raise its production capacity. Zamani-Nia said the country in principle backed OPEC extending its output cuts. which have been in effect since January 1 this year.
Russia. which has joined OPEC in the cuts. is considering extending the deal until the end of 2018. with the group`s ministers set to meet at the end of November. Iran has a production target of 3.8 mbd — a level reached in the second half of 2017.
`We have almost regained our market share.` Zamani-Nia said.
