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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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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.