ExxonMobil Oil Company 'Awaiting Nuclear Agreement with Iran'

In recent weeks, ExxonMobil has increased its efforts to assess the future of U.S. sanctions against Iran and the possibility of their modification following a nuclear agreement. According to unilateral U.S. sanctions over the past three decades, investment and activities of American companies in Iran's oil industry are prohibited. Bloomberg reports that ExxonMobil, which is considered the largest crude oil producer in the world by market value, has hired an American lobbying firm established by former Republican Senator Dan Nichols to monitor all developments related to sanctions against Iran. This is the first time since 2010, when the American oil company Irving hired a think tank to assess Iran's sanctions, that another American company has shown such interest. An expert from the investment consulting firm Morningstar in the U.S. stated that American energy companies are very interested in operating in Iran's oil resources, which are among the largest and cheapest oil reserves in the world for extraction and utilization. Oil extraction and exploitation have been nationalized in Iran for decades and are conducted under government supervision. Due to U.S. sanctions against Iran in the years following the revolution and later due to the nuclear crisis, American energy companies have been barred from operating in Iran's oil and gas industries. Iran possesses the fourth-largest oil reserves and the second-largest natural gas reserves in the world. Alan Good, an expert from Morningstar in Chicago, said, 'Given decades of sanctions and the deterioration and destruction of oil wells, it seems that reviving oil extraction in Iran will take a long time for foreign companies. However, unlike Iraq, there is no civil war in Iran, so the process of extraction and increasing production will be easier. Any company that invests and operates there can achieve good profits in a short time.' ExxonMobil claims that the activities of the consulting firm it recently hired are not lobbying. However, according to information from the U.S. federal government, which periodically publishes reports on the activities of private companies in the country, this consulting firm, led by the former Republican senator, is listed among lobbying organizations. A spokesperson for ExxonMobil told Bloomberg, 'We are not lobbying regarding sanctions related to Iran. Our goal is only to review the latest developments and decisions of the U.S. government regarding these sanctions.' Dan Nichols, the former senator and head of the consulting firm, also stated, 'Our firm has provided services to ExxonMobil for about a decade. We do not influence decisions regarding sanctions related to Iran in any way. Our work is solely to review government plans and decisions regarding Iran's sanctions.' At the same time, it appears that European energy companies have also begun negotiations with Iran due to the potential lifting of some sanctions. Claudio Descalzi, a senior executive at the Italian company Eni, recently stated in an interview with Italian media that he traveled to Iran about two weeks ago and that if a nuclear agreement with the West is finalized, Iran could attract foreign investments. Bijan Namdar Zanganeh, Iran's oil minister, had also previously mentioned the possibility of cooperation with ExxonMobil if sanctions are lifted. The Iranian government attempted to invite American oil companies to Iran in 1995. At that time, a contract worth one billion dollars was signed with Conoco, which was immediately canceled under pressure from the U.S. government. After that unsuccessful attempt, Iran turned to European companies, including Eni, Total, and Shell, as well as several Asian companies. However, between 2003 and 2005, due to the imposition of new sanctions by the U.S. and the European Union, European companies also left Iran. The final stages of negotiations between Iran and the U.S. regarding the country's nuclear program are expected to reach a definitive conclusion by the end of June. If this agreement is reached, foreign companies will be able to invest billions of dollars in Iran's energy sector. 'Standard Oil of New Jersey,' which later became the large ExxonMobil, began investing in Iran's oil industries in 1947. ExxonMobil was part of an international consortium of eight foreign companies in 1954, which, under the name 'Iran Oil Industry Partners,' managed and conducted all daily operations of Iran's oil industry for two decades.