We’re just days past a tentative nuclear agreement with Iran. And already signs are emerging that projects opportunities that could be coming here.
Such as in the oil and gas sector. Where Iranian officials said this week they are already eying Western involvement in the domestic sector.
The head of Iran’s committee to review oil contracts, Mehdi Hosseini, announced Sunday that the government will unveil a new array of contracts in the petroleum sector this September. Hosseini added that the government is specifically looking to investment from U.S. and European firms. Related: Why The Oil Price Collapse Is U.S. Shale’s Fault
As proof, the government said it will hold an international conference in London to unveil the September oil contracts. Demonstrating exactly who the target audience is for this bid round.
This obviously signals a major potential opportunity for E&P players. Iran’s oil and gas fields have proven, high-potential geology, and a lack of modern exploration — with foreign-backed investment in the sector having been limited over past decades to “risk service contracts”, where companies aided in development but were prohibited from owning reserves. Related: This Nation Could Host Next Latin American Offshore Boom
That hang-up — along with recent sanctions — led most big firms to pass by Iran’s fields. But the Iranian government has indicated that could all change this year. Suggesting that petroleum contracts will be reworked to offer attractive terms — including ownership of in-ground oil and gas reserves.
This week’s pro-West announcement from Iran also suggests opportunities could be coming in other resource sectors here. Mining, for example, where Iran holds world-class potential for copper porphyries, lead-zinc deposits and even gold mines. (Just last month, the scholarly journal Ore Geology Reviews dedicated a full volume to new research on Iran’s mineral potential.) Related: Media Spin On Oil Prices Running Out Of Fuel
Of course, all of this is contingent on a final deal with the West going through (and holding up). Watch for developments on the political front — if peace looks to be sticking, it may be time to think about adding this nation to our watch list.
Here’s to going un-rogue,
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