Iran to hold oil conference in London

TEHRAN, Dec. 02 (MNA) – Iran’s oil minister has said foreign oil companies welcome return to Iran despite the fact that sanctions are still hitting the country’s oil industry.

London will host Iran’s international conference to attract foreign investments to its hard-hit oil industry; sanctions as well as lower crude prices have led Iran’s oil ministry to seek foreign investments to improve its position in the markets and secure its income for country’s economy.

Raising production of natural gas and oil to sum of 5,700,000 barrels of crude and 1bn cubic meters daily are among the most important priorities for the Ministry of Oil in the framework of a five-year master plan; plummeting oil prices and with it restrictions pressing the ministry’s resources have made Iran to seek $40bn in investments beyond borders in foreign countries.

For the Ministry of Oil, buyback contracts are more attractive than mere financing by foreign investors; Iran and the 5+1 failed to hammer out a deal in Vienna in November; however, oil and gas giants, as Bijan Namdar Zanganeh informed Mehr News, would welcome extensive talks to find place for their investments in Iran’s upstream oil and gas industries. According to minister’s remarks, Royal Dutch Shell (Shell), British Petroleum (BP), and French Total, along with other European and Russian companies have shown enthusiasm for participation in Iran’s oil and gas industry.

After 5 years when Russia’s Lukoil withdrew from Azer oil field development plan, Vahid Aliakbarov, the managing director of company has stated that they would welcome return to Iran’s oil and gas industry.

Zanganeh also has said that oil giants waited for removal of sanctions to return to Iran’s oil and gas fields; in line with such remarks, the ministry will hold a conference in London in next March to update its latest contracts with foreign contractors. Seyed Mahdi Hosseini, the head of Workgroup for Price Modification in Iran’s oil agreements said that in the case sanctions remain on place, London conference will provide new model of oil agreements designed by the Ministry of Oil; “Marriott hotel in London will host the conference February 23-25, 2015,” he added.

By Mehr News Agency

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