Germans Discuss Energy Projects

Germans Discuss Energy ProjectsGermans Discuss Energy Projects

Business leaders from Germany visited Tehran to explore areas of cooperation, especially in the energy sector, Iranian ambassador to Germany said, IRNA reported Monday.

"The Germans are interested in drilling projects of the Iranian oilfields development plans," Ali Majedi said on the sidelines of a meeting between the Germans and Iranian officials, including Deputy Oil Minister Abbas Shari-Moghadam.

Several German drilling companies have started negotiations with the National Iranian Oil Company (NIOC) and the two sides look to establish "close relations" in the near future, he noted.

Majedi stressed that the oil industry has huge potential for investment and technical and engineering cooperation.

Germany is one of the leading European countries in the energy sector. It is gradually shutting its nuclear power plants and coal-fired plants in favor of renewable energy resources to help protect the environment and curb pollution. It aims to generate 80 percent of its electricity from renewables by 2030.

Shari-Moghadam highlighted Iran and Germany's strong ties in the past and said the two sides are keen to expand cooperation after the lifting of oil and trade sanctions.

The US imposed sanctions on Iran to curb the country's nuclear program which it claims is geared to military use. Iran insists it is peaceful. Iran and P5+1 were unable to reach a comprehensive deal by a November 24 deadline and extended the talks for seven more months.

Germany is one of several European states willing to start cooperation with Iran in the wake of the lifting of sanctions. Italian oil and gas giant Eni has expressed readiness to resume operations in the Darkhovein oil field in south Iran. French company Total has also announced that it would be interested in investing in post-sanctions Iran if the terms of upstream participation are attractive.

German companies had previously participated in shale oil discovery projects in the Zagros region in west and southwest Iran. Additionally, a German company recently signed an agreement with the Research Institute of Petroleum Industry to supply a technology to produce higher-value petroleum products from heavy oil.