Total, Lukoil eyeing return to Iran's oil market

/By AzerNews/

By Sara Rajabova

The positive developments in relations between Iran and the world following the July nuclear agreement are pushing the world’s energy giants to restore their positions in the Iranian market.

French and Russian giant energy companies, Total and Lukoil have been reportedly in talks to buy Iranian oil.

Mohsen Qamsari, the director of international affairs at National Iranian Oil Company said new rounds of talks have started with the two companies to sell oil after sanctions are lifted against the Islamic Republic, Iran’s Mehr news agency reported.

Preliminary agreements have been made with the two international oil companies, Qamsari added.

Total announced on October 19 that it is ready to provide the loans required for the development of Iran’s oil sector projects once the sanctions against the country are lifted.

Stephane Michel, the president of Total's Middle East-North Africa division, told an energy forum in Tehran that Total is also ready to transfer oil industry technology to Iranian companies.

In September, Managing Director of the National Iranian Oil Company Rokneddin Javadi and Total’s President of Exploration and Production Arnaud Breuillac expressed determination of their companies to expand cooperation in areas of mutual interest.

In the meantime, Russian energy giant Lukoil has long been eyeing to resume operations in Iran.

In September, Amir-Hossein Zamaninia, the Iranian deputy oil minister for international and commercial affairs, said Lukoil is prepared to sign a memorandum of understanding (MOU) with Iran.

The negotiations with Lukoil are expected to pave the way for the return of the Russian firm to the Azar field development project.

Lukoil president Vagit Alekperov earlier said his energy group would return to Iran as soon as the sanctions were lifted.

Iran will be hosting international companies as well as economists at a conference in Tehran next month in order to unveil its new model of oil contracts.

European energy companies are also positioning themselves for a return to Iran after sanctions removal.

Royal Dutch Shell, France’s Total, Italy’s Eni, Germany’s Siemens, BASF and Linde as well as Swiss companies are counting the days to stake out oil and gas projects in Iran, with American companies also yearning for a share.