Iran expects foreign oil companies tosign deals valued at $25 billion overthe next one totwo years underthe terms ofa new contract model approved last week.
Tehran hopes touse the recently approved contractual terms ofits new Iranian Petroleum Contracts (IPCs) toattract international investors torebuild its oil and gas industry, the largest sector ofthe economy.
Its state energy producer, National Iranian Oil Co (NIOC) plans totender contracts overa period ofsix months toa year todevelop several oil and gas fields, the oil ministrys news service Shana reported onTuesday, citing the head ofthe company Ali Kardor.
According toreports, NIOC has already identified 34 foreign companies assuitable bidders.
It has also identified 12 to13 fields asa priority forthe first roundof investment, Ali Kardor said, withoutnaming the fields.
Major European oil companies such asItalys Eni SpA and Frances Total SA have expressed an interest indeveloping Irans oil and gas fields.
Among Russias energy giants, who are interested ininvesting inIran, are oil and gas explorer Zarubezhneft JSC, Lukoil, Rosneft and Gazprom Neft.
Iran hopes the substantial amount offoreign investment will help it revitalize its oil and gas sector withthe goal ofincreasing its production capacity to5 million barrels per day.
Dr. Mohammad Sadegh Jokar, Ph.D inInternational Relations who works asResearcher atthe Institute forInternational Energy Studies (IIES), explained toSputnik why this the sector ofthe economy is ofspecial importance tothe country.
Oil and gas production and export has two key values forIran: economic and strategic, he told Sputnik.
It is quite easy tounderstand the first value asthe income fromits sale serves asan engine forfurther development ofthe countrys economy, he said.
The expert further explained that according tothe adopted plan ontackling the current economic stagnation, all the income received fromthe sale ofoil, gas and petrochemical products will be used todrive the macroeconomic development ofthe country which can then cushion any future economic hardships.
However the strategic value ofhydrocarbon production increase may also serve a purpose forIran, he said.
If the dependence offoreign states onIranian energy resources increases, Iran will be able toplay this factor inits interests and more vocally emphasize the need oflifting all unilateral US sanctions imposed onIran, the expert told Sputnik.
Lets assume that the volume ofIranian energy supplies tosuch influential economies ofAsia-Pacific Economic Cooperation (APEC) organization asChina or India or some European countries increases inthe nearfuture. Then these states will advocate the lifting ofsanctions fromIran. And the US will no longer able tofind an easy pretext toimpose new sanctions and hinder the implementation ofthe Joint Comprehensive Plan ofAction (the Iran Deal), he further explained.
In this way, he continued, byincreasing oil and gas production and exports tothe international energy market, Iran will be able tocreate some kind ofan anti-American hydrocarbon consortium.
He suggests it is likely that if there had been such a consortium probably there would have been no unilateral American anti-Iranian sanctions inthe first place.
[caption id="" align="alignnone" width="793"]
A picture shows an oil facility in the Khark Island, on the shore of the Gulf, on February 23, 2016.[/caption]Its a well-known fact that Iran now possesses vast natural gas reserves (about 34 trillion cubic meters), however its share inthe international energy export market is insignificant.
Moreover, inrecent years Irans gas deals went intothe red.
Irans oil and gas ambitions wont go unnoticed byother large energy players asSaudi Arabia and Russia, Dr. Jokar said.
Referring toRussia, the expert said that, unlikeSaudi Arabia, Russia pursues a strict strategy: byimplementing its Nord Stream 2 project or the Turkish Stream project it is trying todecrease the dependency ofthe European states onthe political influence ofthe US.
Iran should follow Russias example inits policy onincreasing energy resources production, the expert stated.
By Sputnik News
