News / Economy

Iran Names 7 Western Oil Companies It Wants to Return

Iranian Oil Minister Bijan Zanganeh wave to journalists as he arrives for a meeting of OPEC oil ministers at OPEC's headquarters in Vienna, Austria, Dec. 4, 2013.
Iranian Oil Minister Bijan Zanganeh wave to journalists as he arrives for a meeting of OPEC oil ministers at OPEC's headquarters in Vienna, Austria, Dec. 4, 2013.
Reuters
— Iran on Wednesday named seven Western oil companies it wants back in its vast oil and gas fields once international sanctions are lifted and said it would offer contract terms in April next year.

Iranian Oil Minister Bijan Zanganeh named the seven in order: Total of France, Royal Dutch Shell, Italy's ENI, Norway's Statoil, Britain's BP and U.S. companies ExxonMobil and ConocoPhillips .

Iran has the world's fourth-largest proved national reserves of oil - most of it cheap to produce - and is also home to the biggest proved reserves of natural gas, some 18 percent of the global total.

But with nationalization in the Islamic revolution of 1979, the oil companies were thrown out. Iran's share of world oil production fell to below 40 percent by 1997 from 55 percent in the 1970s. Its gas output remained negligible.

Oil companies from around the world drifted back in the 1990s, and Zanganeh oversaw their return as minister under the reformist government of 1997-2005.

Total returned to onshore fields in 1997 and Shell in 1999, both while Zanganeh was minister and both in defiance of the U.S. sanctions of the time, even though President Bill Clinton had blocked a Conoco project in 1995.

But Iran's production stagnated through the 2000s amid growing international tensions over its nuclear program. The more effective sanctions instituted in 2012 have choked out foreign investment and sent output down to 2.65 million barrels a day in November from an average of 4.3 million in 2011.

Iran last month reached an interim deal with six western powers to limit its nuclear program, under which sanctions on oil investment and trade with Iran may be lifted next year.

European talks first

Speaking to reporters at an OPEC meeting, Zanganeh said he was already talking with some companies, although so far not those from the United States.

“We had no limitations for U.S. companies. Twenty years ago there were limitations against them from their own administration," he said. "For doing projects in Iran, we have no limitations.”

Zanganeh is due to meet senior executives from Western oil companies including Eni and Shell on Thursday, an Iranian oil official said.

Zanganeh made no mention of Russian, Chinese or Japanese companies or those of other nationalities. Asked whether he would like to see Asian, Indian, Chinese companies coming to Iran as well, he said: “Yes, but now we are discussing with European [firms].”

He said contract terms would be better than those in post-war Iraq, which limited oil companies to operating fees rather than the share of production deals they prefer.

“I cannot say more about the detail,” Zanganeh said.

Mehdi Hosseini, an Iranian official in charge of revising national investment terms, told Reuters he hoped to be able to introduce the new contract model at a London conference in the second week of April.

“The Iranians aren't under any illusions that they can draw anyone in before the sanctions are lifted,” said a Western oil executive from a company previously involved in Iran. “And most international oil companies will be careful not to go one step too far before a final agreement is reached between Iran and the West.”

A Western oil source from another company that had invested in Iran said, “A removal of sanctions that would allow for tangible progress for international oil companies is still at the minimum 18-24 months away.”

You May Like

Uganda Court Annuls Anti-Gay Law

Court says law was passed in parliament without enough members present for a full quorum More

Multimedia Thailand Makes Efforts to Improve Conditions for Migrant Laborers

In Thailand, its not uncommon for parents to bring their children to work; one company, in-collaboration with other organizations, address safety concerns More

In Indonesia, Jihad Video Raises Concern

Video calls on Indonesians to join Islamic State of Iraq and the Levant, ISIL More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
In Thailand, Some Efforts to Improve Conditions For Migrant Laborersi
X
Steve Herman
August 01, 2014 6:22 PM
Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video In Thailand, Some Efforts to Improve Conditions For Migrant Laborers

Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video Public Raises its Voice on Power Plant Pollution

In the United States, proposed rules to cut pollution from the nation’s 600 coal-fired power plants are generating a heated debate. The U.S. Environmental Protection Agency, charged with writing and implementing the plan, has already received 300,000 written comments. As VOA’s Rosanne Skirble reports, another 1,600 people are lining up this week at EPA headquarters and at satellite offices around the country to give their testimony in person.
Video

Video Information War Rages Alongside Real One in Ukraine

The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict in Gaza, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities. Probably the most important destination is the local bakery. VOA’s Scott Bobb reports from Gaza City.
Video

Video China Investigates Powerful Former Security Chief

The public in China is welcoming the Communist Party's decision to investigate one of the country's once most powerful politicians, former domestic security chief Zhou Yongkang. Analysts say the move by President Xi Jinping is not only an effort to win more support for the party, but an essential step to furthering much needed economic reforms and removing those who would stand in the way of change. VOA's Bill Ide has more from Beijing.
Video

Video US-Funded Program Offers Honduran Children Alternative to Illegal Immigration

President Obama and Central American leaders recently agreed to come up with a plan to address poverty and crime in the region that is fueling the surge of young migrants trying to illegally enter the United States. VOA’s Brian Padden looks at one such program in Honduras - funded in part by the United States - which gives street kids not only food and safety but a chance for a better life without, crossing the border.
Video

Video 'Fab Lab' Igniting Revolution in Kenya

The University of Nairobi’s Science and Technology Park is banking on 3-D prototyping to spark a manufacturing revolution in the country. Lenny Ruvaga has more for from Nairobi's so-called “FabLab” for VOA.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.