LONDON: Talk of a possible agreement between Iran and the United States over Tehran’s nuclear programme has put pressure on oil prices, with markets anticipating that the possible removal of sanctions on Iranian oil sales could boost global supplies.
Iranian Oil Minister Javad Owji said last month that “many major companies” have already sent emails to his ministry and initiated discussions to participate in oil and gas projects in the Islamic Republic.
Oil majors pulled out of Iran after the 2018 withdrawal of the United States from the nuclear deal under then-President Donald Trump, who reimposed tough sanctions on Tehran.
Below is a summary of companies from Europe, Russia and Asia that signed contracts with Iran for oil and gas exploration, development and production, but froze their activities due to the sanctions.
TOTAL
France’s Total was the first global energy firm to return to Iran after earlier sanctions were lifted in 2016. Total signed a contract in 2017 to develop Phase 11 of South Pars, the world’s biggest gas reserve, with an initial investment of $1 billion.
Other partners in the deal were China’s state-owned CNPC with 30 percent stake, and Iran’s PetroPars with 19.9 percent.
Total pulled out of Iran in 2018.
CNPC
China National Petroleum Corp (CNPC) replaced Total as the operator of the Phase 11 project at South Pars, taking over Total’s 50.1 percent stake.
However, CNPC also suspended its investment in South Pars in 2018 in response to US pressure.
SHELL
Shell signed a provisional deal in December 2016 to develop the Iranian oil and gas fields South Azadegan, Yadavaran and Kish. The firm, which was called Royal Dutch Shell at that time, froze activities in Iran due to the US sanctions, according to Iranian media.
LUKOIL
Russia’s second biggest oil producer, Lukoil, signed several memoranda of understanding (MoU) with the National Iranian Oil Company (NIOC) in 2016 for development of Abe Timur and Mansouri oilfields in central-western Iran. Lukoil decided in 2018 not to go ahead with plans to develop the projects due to the threat of US sanctions.
OMV
Austrian energy group OMV signed an MoU with NIOC in 2016 as it looked to revive its activities in Iran. The deal covered several areas ranging from oil and gas field evaluation to crude oil and petroleum product swaps. OMV later suspended investment in Iran.
WINTERSHALL
BASF’s Wintershall oil and gas exploration arm signed an MoU with the NIOC in April 2016 for investment in Iranian energy projects, but the deal was put on hold due to uncertainties over the economic sanctions.
ENI
Italy’s Eni signed an agreement with Iran in June 2017 for feasibility studies to develop an oil field and a gas field. Eni announced in 2018 that it had no dealings with Iran.
ZARUBEZHNEFT
Russia’s Zarubezhneft signed a deal in 2018 with NIOC to develop two oilfields in Iran. The firm pulled out in the same year from joint projects in Iran.
PERTAMINA
The Indonesian government decided in 2018 to freeze Pertamina’s deal to operate the Mansouri oil field in Iran because it wanted to preserve the country’s “good relationship” with the United States.
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