Europeans showing interest in Iran’s oil, gas

European oil majors are for the first time openly declaring interest in Iran in anticipation of a possible end to sanctions against the country over its nuclear program.

Leaders of Royal Dutch Shell, BP and Total all said Wednesday they were ready to return to the nation with the world’s second- largest natural gas reserves and fourthbiggest oil cache, after similar comments by Italy’s Eni last month.

U. S. oil companies, constrained by the history of American sanctions against Iran dating from the 1979 Islamic revolution, are more cautious in their statements on a return. The current curbs have prevented investment in Iran for a decade.

“Iran is a wonderful country with a fantastic resource base,” Ben van Beurden, chief executive of Shell, said in Vienna at a conference of the Organization of Petroleum Exporting Countries. “As soon as there is legitimate opportunity, we will be looking at Iran.”

Everybody in the oil industry wants to go back to Iran once the international sanctions have been lifted, he said.

Iranian Oil Minister Bijan Namdar Zanganeh, the centre of attention at OPEC’s biennial meeting with the oil industry, said Tehran would offer foreign oil companies “more attractive” contracts than during the last wave of investment a decade ago.

The new terms are “long- term, with better situation, rather than the previous framework that we have,” he said in reference to the old contracts.

Most executives are walking a fine line, showing their interest in Iran while insisting no negotiations are happening as long as the nuclear sanctions remain in place.

BP CEO Bob Dudley said the London- based company would be “very much” interested in investing in Iran when sanctions go. Still, with talks between the U. S. and Iran over their nuclear dispute ongoing, any talk of deals remains premature, he said.

Iran, for its part, sees the return of foreign firms as the key to reviving its oil industry.

Iran needs $ 200 billion of investment in its oil industry, Zanganeh said last month.