Iran Has Inked 12 Oil Contracts with Foreign Firms

The Islamic Republic has signed 12 memorandums of understanding (MoUs) with foreign oil companies so far, the deputy head of the National Iranian Oil Company (NIOC), Gholamreza Manouchehri, said on Monday.

He added that there are also plans for inking 10 to 12 other oil deals with foreigners in the near future.

“Low cost and low risk (opportunities) for oil and gas production are two advantages of Iran to attract investors,” the Iranian official noted.

Iran is presently OPEC’s third largest producer after Saudi Arabia and Iraq.

Iran plans to increase its oil production to as high as four mb/d, the level that existed before US-led sanctions imposed against Tehran in 2011.

The sanctions mainly prevented foreign investments in Iran’s oil industry that it needed for its oil production. They also restricted the country’s oil exports to around one mb/d.

Iran and the five permanent members of the United Nations Security Council - Russia, China, the United States, France, and Britain plus Germany- in 2015 signed a nuclear agreement known as the Joint Comprehensive Plan of Action (JCPOA) which terminated nuclear-related anti-Tehran sanctions after coming into force in January.

Source:Tasnim