Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )

Iran hopes to ramp up production quickly

Iran hopes to return its crude oil exports to pre-sanctions levels within three months once a deal with regarding the country’s nuclear program is reached and sanctions are lifted, said Iran’s Deputy Oil Minister Rokneddin Javadi.

“We hope we can come back to the export levels that we had before the sanctions,” Javadi, who is also the managing director of the National Iranian Oil Company, told Reuters. He said Iran thinks it is possible to reach these levels in three to six months.

Iran trying to attract foreign investment

Iran will need substantial investment in order to revitalize an energy sector that was cut off from investment by sanctions. Javadi said Iran plans to hold a conference in London in September to attract investors for its exploration and production sector.

“From the government’s standpoint, there is no limitation for oil investment by the Americans in Iran,” Iran’s Deputy Minister of Petroleum Amir Hossein Zamaninia said, Iranian Press TV reported.

Zamaninia indicated that there has been strong interest from both European and American companies. “Over the past couple of months, not one or two companies, but several American entities have announced readiness to invest and participate in Iran’s oil industry projects if sanctions are annulled.”

Managing Director of Iran’s Pars Oil Company Hossein Vafaee said indirect talks have already begun with Royal Dutch Shell (ticker: RDSA). Mehdi Hosseini, head of a team set up by the Ministry of Petroleum (MoP) to revise the current format of Iran’s oil contracts, also said companies from Russia and China were showing interest.

The new format of Iran’s oil contracts – named Iran Petroleum Contracts (IPC) – will be a modification of the traditional buy-back risk service contracts and has been specifically designed to increase the attractiveness of Iranian oil projects for foreign investors, according to Press TV.

American companies will have to compete with Iranian private sector

“The pattern for partnership and investment of American companies in Iran’s oil and gas industry has to be based on the trade package which has been earmarked to the Iranian private sector,” said Zamaninia. For any venture in Iran, U.S. firms have to compete with Iranian companies in the private sector, he added.

An influx of foreign companies could make things difficult for Iranian companies, Vafaee said. “If sanctions are removed, many rivals will enter the Iranian market and this will make tough conditions for us,” he said.

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.