The re-opening of Iran's upstream sector presents the international market potentially lucrative opportunities, however, serious risks remain
Since the implementation day of the Joint Comprehensive Plan of Action there has been potential for the opening of Iran’s upstream sector to foreign investment, but internal power struggles and a lack of clarity on residual sanctions have hampered progress. Furthermore, in the absence of the finalized terms of the Iran Petroleum Contract, IOC activity has been limited to non-legally binding agreements such as memoranda of understanding, leaving the upstream sector at a standstill.
Analysis conducted on the fields reported to be on offer to investors indicates they have significant potential, but this can only be realized if contract terms are investor-friendly. The likelihood of this scenario appears to be fading, with reports from companies operating in Iran describing the highly anticipated contracts transition into an ‘Advanced Buyback Contract’, under which many terms would be reminiscent of the older unattractive model.
Presented by
Ali Al-Killidar,
Lead Upstream Analyst - Middle East
Ali Al-Killidar has extensive experience analyzing the Middle East upstream industry, conducting project modelling and market analysis. His recent work includes the assessment of the impact of the lack of water supply to Iraq’s Southern mega-giant oil fields and in-depth analysis of hydrocarbon developments in the Eastern Mediterranean. Ali has received a Master of Science and Bachelor of Engineering degree in petroleum engineering from London South Bank University.
