UK Oil Firms Join The Tehran Trail

Representatives from some of Britain’s biggest energy companies touched down in Tehran this week to become just latest in a long line of European energy executives seeking out the opportunities that could be on offer once sanctions on the Iranian oil and gas sector are lifted.

After years of struggling under the weight of layer upon layer of crushing economic sanctions, Iran is looking to take full advantage of the economic opportunities that last month’s historic nuclear deal with the five permanent members of the UN Security Council plus Germany could bring.

This is particularly the case in its energy sector — the lifeblood of the Iranian economy. Iran has not only identified around 50 upstream projects it plans to open to foreign investors post-sanctions, but also reworked its upstream investment contract to make the terms more favorable to foreign firms. This new generation of contract, dubbed the Iran Petroleum Contract (IPC), will be unveiled at a London roadshow in December, and replaces the notoriously unattractive buybacks introduced in the late-1990s. (CONTINUED - 952 WORDS)