Iran to Sign Six Oil Sector Deals with International Energy Companies
Tehran: Iran is all set to sign six
agreements with foreign companies for the development of its oil sector
projects. These international energy firms would team up with local companies
for the development of the major fields while Iranian companies would be the
project leader for the expansion of small fields.
TechSci Research depicts that the advent of foreign players and
anticipated rise in capital inflows, oilfield services market in Iran is
expected to grow by 2021. Lifting up of the sanctions, along with decline in
crude oil prices is a major reason pushing growth in oil & gas E&P
activities in Iran. In addition, cheaper oil & gas exploration cost in Iran
make it a profitable venture for US based international E&P companies to
explore oil in Iran, as the cost to produce a barrel of crude oil in Iran is
around $12.90 as compared to around $36.90 in the US.
According to released report of
TechSci Research “Iran Oilfield Services Market By Application, By Type, Competition
Forecast and Opportunities 2011 - 2021”, oilfield services market
in Iran is forecast to grow at a CAGR of more than 13% during 2016-2021, on
account of anticipated increase in oil & gas E&P activities. Further,
as a result of signing of a Joint Comprehensive Plan of Action (JCPOA) with
P5+1 nations, in 2015, Iran is cutting down on its nuclear enrichment
activities and is focusing towards increasing its crude oil production. This in
turn is expected to result in augmented demand for oilfield services during
2016-2021.