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Not All Foreign Companies Eager To Leave Iran

Khamenei

Amid a growing number of companies preparing to leave Iran as U.S. sanctions kick in, one international oil and gas consortium has announced it will stay in the country. Pergas International Consortium, which includes 11 European, Canadian, and Asian companies, has no plans to abandon its Iranian operations, Irna quoted its managing director Colin Rowley as saying.

The statement comes a month after Pergas signed a preliminary contract with Tehran for the development of the Keranj oilfield in the southern Khuzestan province of Iran. Reuters noted at the time this was the first contract after President Donald Trump announced the Untied States’ withdrawal from the Iran nuclear deal.

Pergas plans to pump a total 655 million barrels of oil from Keranj over the next 10 years. This weekend, the company’s head said, “the Consortium plans to execute the plan with precise and accurate management and for this purpose, it intends to cooperate with the Iranian and international parts manufacturers. Once this plan is executed completely, moreover increasing Iran’s crude production capacity, employment opportunities will be generated in Khuzestan Province.”

Energy Minister Bijan Zanganeh told media this weekend that there were plans to increase Iran’s crude oil production by 460 million barrels over the next three years. This will involve ramping up production from 29 fields across the country.

Related: The Real Reason For Higher Gas Prices

Most of the work on this production boost will be carried out by local companies, Zanganeh also said, adding that 75 percent of the equipment to be used in the endeavor is also Iranian.

Iran is OPEC’s third-largest oil producer, with a daily rate of 3.8 million barrels as of early June, according to a survey from S&P Platts. The return of U.S. sanctions is expected to affect this figure, although the precise extent of the impact is yet to be seen.

By Irina Slav for Oilprice.com

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  • Esther Haman on June 12 2018 said:
    Iran has not limited herself and still has the option to go fully nuclear or Stay the course with the EU, Russia and China with some difficulties and expand more cooperation with the eastern blocks. As time passes, in 7 years, Iran still would be working in the frame work that is sanctioned by UN and increase her nuclear capabilities within the agreed JCPOA frame work.

    So, who will lose in the long term?! The Zionists and us. We have pulled our economy and country out of the main stream that has changed the world since WWII on behest of the Zionists. Thanks to comrade Trump we just handed that world and that market to China in a silver platter. Thank you Bi Bi Yahoo and Comrade Trump.
  • Mamdouh G Salameh on June 11 2018 said:
    Chinese, Russian and many Asian companies along with scores of European Union’s (EU) companies will certainly defy President Trump’s forthcoming sanctions on Iran and stay in the country. If the US retaliates against EU companies operating in Iran, it will be a case for tit for tat.

    Judging by the mood in the just-finished G7 meeting in Canada, the EU governments who accuse President Trump of harming global trade by his tariffs are in no mood to tolerate any more reckless and unstatesmanlike behaviour and more tariffs from the US president. As for Russian and Chinese companies, they will just ignore the sanctions.

    President Trump is behaving as a president of an indispensable superpower whose indispensability is eroding fast. I am of the opinion that the tariffs he imposed on Chinese imports are the first shots in an impending confrontation between China’s petro-yuan and the petrodollar which could easily escalate beyond a trade war between the two countries.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

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