• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 7 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 1 day America should go after China but it should be done in a wise way.
  • 7 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 10 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 9 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 1 day How Far Have We Really Gotten With Alternative Energy
  • 10 days Putin and Xi Bet on the Global South
  • 10 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

European Oil Companies Return to Iran, Hopeful of Sanctions Relief

Representatives from major European oil companies have been meeting officials in Iran in an attempt to strengthen relationships and put themselves in a position of favour ahead of the anticipated lifting of Western sanctions.

Back in November 2013 Iran managed to agree terms for a six month deal with the West in which they will earn a slight reprieve to the sanctions in exchange for scaling back their controversial nuclear program.

Tough sanctions will still remain in place until a full deal is made, but hopes are high and executives from European firms such as Total and Saras have recently visited Tehran in order to talk with officials from the National Iranian Oil Company (NIOC). Iran is confident that it will be able to secure a full suspension of sanctions and resume trade with Europe by the end of the year.

A senior Iranian oil official told Reuters that “everybody is preparing for serious negotiations with Iran, pending the removal of sanctions. We've already had lots of interest from our traditional customers in Europe.”

Paolo Scaroni, the Chief Executive of Eni, explained that “the best way for companies like us to go back to Iran is to follow strictly the sanctions and push both parties to reach an agreement which will lead to the lifting of sanctions one day.”

Related article: Iran's Patience May Pay Off in Oil Markets

Reuters reports that before the strict sanctions were imposed in 2012, Iran supplied more than 700,000 barrels a day to the European Union plus Turkey, nearly a third of its entire exports, and whilst the sanctions are not expected to be lifted in the short term, Tehran is already preparing the way for its return to Europe. As well as the recent talks with company executives, Iranian officials also plan to hold meetings with old customers in Istanbul and London in the next few weeks.

An industry sources commented that “I suspect it won't lead to anything real. They want to send optimistic signals and try to put prospective customers on the spot.”

ADVERTISEMENT

Below is a table created by Reuters to show the volumes of crude oil imported by European companies, including Turkey, before the sanctions began to take effect in 2012.

Iranian Export Volumes to Europe

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News