• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 2 mins Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 7 hours Would bashing China solve all the problems of the United States
  • 12 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 2 hours China to Impose Dictatorship on Hong Kong
  • 5 hours Incompetent "Journalists"
  • 12 hours Model 3 cheaper to buy than BMW 3 series.
  • 2 mins Thugs in Trumpistan
  • 14 hours Iran's first oil tanker has arrived near Venezuela
  • 15 hours Let’s Try This....
  • 18 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 20 hours HVDC Cheaper Than Low-carbon Natural Gas
  • 15 hours Pompeo's Hong Kong
  • 6 hours 60 mph electric mopeds
  • 20 hours Oil and Gas After COVID-19
U.S. LNG Investment Suffers As Demand Dwindles

U.S. LNG Investment Suffers As Demand Dwindles

Weak demand is sparking a…

U.S. Shale Is Living Beyond Its Means

U.S. Shale Is Living Beyond Its Means

CEOs of some of America’s…

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.”

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

Oilprice - The No. 1 Source for Oil & Energy News