US policy on Iran won’t harm oil sector: Zamani-nia
US President Donald Trump’s revised hardline policy towards Iran will have little impact on Tehran’s ambition to develop its vital oil sector and attract foreign investment, said a senior Iranian official on Tuesday.
The Islamic Republic hopes to signs 10 new deals with foreign companies to develop new oil and gas fields by March 2018, Amirhossein Zamaninia, Iran’s deputy oil minister for trade and international affairs said at the Oil and Money conference in London, reported Reuters.
Trump’s decision last Friday not to certify that Iran was complying with a landmark 2016 international nuclear deal will not detract from Tehran’s plans, he said.
“I don’t think any of us, or any of our partners have been surprised by this statement. Our expectations of policy formulation from Washington have been very measured,” he said.
“The (US) statement and policy ... has little or no effect and implication on our future plan in the oil industry,” Zamani-nia said.
Iran is negotiating 28 contracts with foreign companies, including many of Europe’s top oil companies, under a new development contract, he added.
In July, France’s Total became the first Western oil major to re-enter Iran following the lifting of international sanctions with an agreement to develop the giant South Pars offshore gas field.
Royal Dutch Shell has also signed an agreement with Iran for the possible development of oil and gas fields.
Iran, which holds the world’s largest gas reserves, plans to boost its gas production to 1.1 billion cubic meters per day by 2021 from the current 800 million bcm per day, he said.
The OPEC member also aims to raise its oil production capacity to 4.7 million barrels per day by 2021 from the current 3.8 mbd, he said.
He said that the major oilfields — Azadegan, Yadavaran, Abteymour and Mansouri — have potential to increase output by 2 mbd combined.
He said Iran would support an extension of OPEC oil-production cuts to the end of next year.
“We are pleased with the way OPEC has decided to cut some production in order to bring a semblance of balance between supply and demand,” the official said adding, “We think that this trend will continue.”
The Organization of Petroleum Exporting Countries and its partners are debating whether to extend output cuts that are set to expire in March, in an effort to drain the global glut and shore up prices.
While the curbs have shown signs of success in recent months, the market could return to surplus if the group fails to renew the accord.
The country agreed to a cap of 3.797 million barrels a day in last year’s OPEC accord, which became effective in January. When asked whether Iran would restrain its production if the deal is extended, Zamani-nia said it will ‘match’ its plans to expand output capacity with the policies it agrees on with OPEC.