Russian oil major Lukoil is reopening its offices in Iran
Russia’s Lukoil (ticker: LKOH) will be reopening its office in Iran. When speaking to reporters on Wednesday, Ravil Maganov, first executive vice president of Lukoil, said, “We look forward to participation in projects in Iran after the sanctions are fully removed.”
Maganov said that the Anaran project is Lukoil’s priority in Iran, but the company is also interested in other projects, reports Russian news agency Tass. “We are studying geological data on other projects as well,” the EVP said.
Lukoil purchased a 25% share in the block, which is located on the Iranian-Iraqi border, from Norwegian firm Norsk Hydro, according to a non-profit foreign policy firm. Lukoil started work in the Anaran block in 2003, but was forced to pull out in March 2010 after economic sanctions imposed on Iran made continuing work impossible.
In November of last year, Lukoil’s President, Vagit Alekperov, said the company was interested in returning to the Anaran block if sanctions were lifted. “We would like to return to this deposit,” he said. “We know its geology and infrastructure.”
Iran’s oil minister, Bijan Namdar Zangeneh, believes production from the OPEC member can add 1 MMBOPD to the world export market in the next several months if sanctions are lifted. Analysts disagree on exactly how much of that oil might come back to market right away though.
Analysts at Raymond James estimate that the maximum amount of oil that Iran could export would be closer to 0.7 MMBOPD. “We believe the most realistic potential supply increase would be in the 0.5 MMBOPD range by the end of 2016,” said the note.
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