Iran received sanctions 15 years ago as a result of the country'snuclear program.Since then, the countrys exports of oil have been reduced to more than half, declining to nearly 1 million barrels a day from a total of 2.5 million barrels. Major foreign companies greatly reduced their operations in Iran as a result of the sanctions. Sulzer, an engineering firm that deals in construction and technical assistance for hydrocarbon-based industries andstrategic partner ofUnaoilin the Middle East, is one of the companies that significantly decreased their businessin the country when the sanctions were applied.
Hossein Vafee, one of the key figures of Irans oil industry and managing director of Pars Oil Co., said that his firm has been talking to Oil Behemoth Royal Dutch Shell. Vafee said that Shell expressed its desire to resume its work in the country, and other nations such as Italy and The Netherlands will likely follow suit. The U.S. is also showing interest in Irans oil, as a group of American-based oil companies went to Tehran last week to discuss about business.
If the UNs sanctions will be lifted, Iran would be able to immediately export more than 30 million barrels of oil in storage that were amassed during the 15-year restriction.
The sudden interest in Iran, apart from predictions that the sanctions will be lifted soon, is coming from the countrysnew format for oil contracts.The new format is based on the country's traditional buy-back contracts that will ease the process of repayments for unsuccessful investments.
International oil majors have strongly welcomed Iran's new format of oil contracts, said Mehdi Hosseini, Head of Iran Oil Contracts Revision Committee. They are waiting for the results of Iran's nuclear talks (on) the removal of sanctions.
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