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Iran would require lots of investment in energy sphere

31 August 2015 [17:56] - TODAY.AZ
By Aygun Badalova 

Iran would require lots of investment in order to become a major player ?n the world energy market, Vesa Ahoniemi, an independent energy analyst believes.

“Iran would require a lot of new investment, including in the country's own pipeline network,” Ahoniemi told Trend.

Iran and the P5+1 have reached a nuclear deal after more than a decade of on-off negotiation, granting Tehran sanctions relief in exchange for curbs on its nuclear program. The agreement aims to limit Iran's nuclear work for more than a decade in exchange for the gradual suspension of sanctions that have slashed Iran's oil exports and crippled its economy.

Sanctions on Iran are expected to be eliminated by the end of the current fiscal year.

“Until the sanctions are lifted financing will be impossible and even thereafter I suspect oil will receive a lion's share of inward foreign investment,” Ahoniemi said.

Iranian oil production has fallen by over 1m bpd since the imposition of the latest round of sanctions at the start of 2012.

Earlier Iranian authorities said that the country’s oil supply could double from the current 1.2 million barrels per day to 2.3 million barrels if the sanctions are lifted.

Iran repeatedly stated that OPEC member states should make room for Iran to allow it to increase the export and called for returning to the individual quotas for oil production for the cartel’s members.Currently, OPEC’s quota for oil production is 30 million barrels per day.

According to the report British economic research and consulting company Capital Economics, a macro-economic research company estimates that Iran should be able to regain its pre-sanctions level of around 4m bpd relatively quickly.

The report said that resuming oil output for Iran is possible in six to 12 months, but it will take a considerably longer period of time to reinvigorate Iran’s ageing infrastructure.

"Admittedly, Iran’s terms for Western oil companies are reportedly significantly less generous than other countries," the report, obtained by Trend had said.

"But it is reviewing them and companies are unlikely to pass up on the chance to develop one of the last remaining reserves of easily accessible oil, especially as Iran should be a relatively stable environment to invest in Iran".

/By Trend/
URL: http://www.today.az/news/regions/143309.html

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