Drop in prices adds to lure of Iran oil industry

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Tehran: A senior Iranian official said the dropping oil prices in the world have added to the lure of investing in Iran’s oil industries.

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Talking to IRNA on Sunday, Head of the Oil Contracts Revision Committee of Iran’s Ministry of Oil, Mehdi Hosseini pointed to the positive impact of dropping oil prices in the world on investments on well-paying oil regions.

He said this process is to the benefit of the Iranian oil industry as well since it gives rise to investment bids for the Iranian oil contracts.

Referring to many opportunities existing now in the Iranian oil industry for investors, he noted that the cost of oil production in Iran is much lower than in many world countries including the US.

He said the risk for investors is nothing compared with other world countries.

Due to the sanctions against Iran, the official added, Tehran is going to introduce its new oil contracts to the world in a conference in London in September after the removal of anti-Iran sanctions.

Given the fact that international oil companies have suffered huge losses due to sanctions against Iran, he noted, they are keen and ready to come back to the Iranian oil industry once sanctions are lifted.

As for the presence of American companies in Iran’s oil industries, Hosseini said they are certainly interested in making investments in this area.

In related news, German companies are eager for Western sanctions against Iran to be removed as a prelude to increasing trade ties with the Islamic Republic.

According to the German news agency, Deutsche Welle, German companies hope the removal of sanctions against Tehran through a final agreement between Iran and the P5+1 group of countries would pave the way for their prospective investments in the Iranian market.

According to IRNA, the volume of trade exchanges between the two countries hit USD 3 billion in 2014.

A spokesman for Germany’s Berlin-based foreign trade union was also quoted by Deutsche Welle as saying that Iran has high potentials in the fields of automobile manufacturing and energy production, which can be used by German’s economic and trade sectors once Western sanctions against the country are removed.

At the beginning of 2012, the US and EU imposed sanctions on Iran’s oil and financial sectors to prevent other countries from purchasing Iranian oil and having trade and business ties with the Islamic Republic.

The sanctions were imposed over allegations about possible diversion in Iran’s nuclear program toward military objectives. Iran has categorically rejected the allegation, noting that its civilian nuclear program is only meant for peaceful purposes.

PNA

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