Analysts quoted in financial and trade media see an eventual ramp-up of 1m bpd in Iranian oil production, which had languished at 2.8m bpd during the first half of 2015 – about 1.1m bpd going to exports that were exempted from the sanctions. The country of 80 million people generates a $400-billion economy, boasts the world’s fourth-largest oil reserves, the second-biggest stores of natural gas, and has well-established manufacturing and agricultural industries.
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The proposed contract is more liberal than Iran’s previous “buy-back” contracts, Hossein Zamaninia, Iran’s deputy oil minister for commerce and worldwide affairs, told reporters on the sidelines of a conference in Vienna.
The long-awaited nuclear deal has cleared a path to lift sanctions that have crippled Iran s economy, and should re-open channels for foreign investment in oil and gas-rich Iran.
Iran was barred from SWIFT, severely limiting its ability to engage in worldwide trade, due to Western sanctions over its disputed nuclear activities. Evercore analyst Jon Chappell wrote: “More immediately, the National Iranian Tanker Company (NITC) owns 37 VLCCs, with up to 50% now storing oil (almost 40 million barrels as said by reports)”.
VIENNA (AP) Oil, gas, banks and more, worth tens of billions of dollars to the highest bidder. But its privatisation programme has not been fully effective because most of the stakes have gone to state-linked bodies such as pension funds and foundations.
During a Senate Foreign Relations Committee hearing Thursday in Washington, US Senator Marco Rubio, a conservative seeking the opposition Republic Party’s 2016 presidential nomination, did not hide his desire to kill the Iran deal either in Congress or, he hopes, from the White House. Nematzadeh said this was ending, and parliament had agreed that all firms would be treated equally for tax purposes.
Observers say the deal on Iran’s nuclear program has also breathed new life into plans for a gas pipeline through Pakistan.
Reported by Iran’s Minister of Industry, Mines and Trade Mohammad Reza Nematzadeh, Iran is preparing to join the World Trade Organization and establish a free trade zone with the countries of the European Union.
Much of this money has been frozen in overseas accounts by the sanctions; Komijani said blocked funds totalled about $29 billion.
“Iranian and Indian finance ministry officials are expected to thrash out a new arrangement shortly even though full lifting of the sanctions is likely to take a while”, said a top government official privy to the development.
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Such a step could strengthen foreign investor confidence by suggesting Tehran is confident the nuclear deal will stick.
