Rehabilitation and Expansion of Iran's Oil Sector in the Post-Nuclear Deal Era: Programs, Problems and Uncertainties

In the post-nuclear deal scenario, Iran has reformulated the terms of the oil contract model, called the Iran Petroleum Contract (IPC), to attract international investments and technology in field development. In addition, it has ramped up production and competitively priced its oil to Asia and Euro...

Full description

Saved in:
Bibliographic Details
Published in:Perceptions (Ankara, Turkey) Turkey), 2016-09, Vol.21 (3-4), p.33
Main Author: Ashwarya, Sujata
Format: Article
Language:English
Subjects:
Growth
Industry forecasts
International aspects
Petroleum industry
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:In the post-nuclear deal scenario, Iran has reformulated the terms of the oil contract model, called the Iran Petroleum Contract (IPC), to attract international investments and technology in field development. In addition, it has ramped up production and competitively priced its oil to Asia and Europe so as to recapture the market share lost during the sanctions period. Any further enhancement of production capacity, however, requires expansion of green fields and resuscitation of brown fields under the IPC. The success of this effort will depend upon Iran's domestic political stability as much as the international environment, where sanctions are held in abeyance and oil prices continue to rise to a level that unlocks the investment capital of the big oil companies. Nonetheless, in a scenario of increasing global commitment to adopt green energy, whether oil companies would still want to make long-term investments in large hydrocarbon projects in general, remains an open question. Key Words Iranian Nuclear Deal, International Sanctions, Post-Sanctions Dynamics, Iranian Oil Sector, Foreign Investment Scenario, Iran Petroleum Contract, Changing Global Energy.
ISSN:1300-8641