2016 is set to be a huge year for Iran as it shakes off a raft of international sanctions, ramps up oil and gas production and signs contracts with international oil companies (IOCs) under the new Iran Petroleum Contract (IPC) provisions. Of course, this is all contingent on the International Atomic Energy Agency (IAEA) verifying Iranian compliance with the terms of the landmark nuclear agreement – the Joint Comprehensive Plan of Action (JCPOA) – signed with a group of six world powers in July.

So far, this process appears to be progressing smoothly, with indications that verification – “implementation day” – could occur as early as January 2016. With Iranian Oil Minister Bijan Zanganeh continuing to assert that Iran can increase production and exports by 500,000 b/d upon the lifting of sanctions, Q1 2016 could see the entry of a wave of fresh crude onto global markets. Beyond this, Mr Zanganeh has stated that Iran can add a further 500,000 b/d within months of sanctions being lifted. (CONTINUED - 1053 WORDS)