Big Oil Companies Willing to Return

Big Oil Companies Willing to Return
Big Oil Companies Willing to Return

Amir Ali Hendjani, the managing director of 'Rock Petroleum' oil investment company said "if Iran reaches an agreement with Group 5+1 and sanctions are eased, big oil companies would be willing to return", IRNA reported.

If and when the sanctions are lifted, opportunities for investment and transfer of technical know-how will reemerge in many sectors, including the oil and gas industry, he said.

"Iran's biggest asset is its human resources that are now working in almost all science and research centers around the world."

Because of the sanctions Iran now produces less than 2 million barrels of oil per day, most of which is used for domestic purposes.

"Iran was once OPEC's second largest producer and exporter but due to sanctions it has fallen to eighth position" the news agency quoted him as saying

The senior oil executive said Iran needs high investments to raise oil production to desired levels and which should be obtained from either domestic or international resources.

"I believe Iran needs  at least $100 billion to increase its crude oil production capacity to five million barrels a day."

Referring to Iran's new oil contracts to be unveiled in London, Hendjani said nobody is aware of the contents of the contracts except those in the National Iranian Oil Company. "But, I believe it's best to avoid a 'buy back' agreement since they help neither the country nor the foreign companies wanting to participate in the oil projects. Iran must push for production sharing schemes."

In response to a question whether the ongoing slide in the international price of crude is a result of a so-called price war, he said there are many speculations in this regards. "But it can be fairly said that there is a large excess of oil in the market and if there is a price war, it would target Russia, considering the cold war between US and Russia."

The oil price and production issues in Persian Gulf region and OPEC depends largely on Saudi Arabia, the UAE and Kuwait, and these countries have for now decided to reduce prices, which could be due to both "political and economic reasons, " he said without elaboration.