One of the World's Largest Oil Service Companies Moves to Enter the Iranian Market

Schlumberger, one of the largest oil service companies in the world, has announced that it will consider re-entering Iran as soon as sanctions are lifted. According to Reuters, CEO Paal Kibsgaard stated on Friday, July 16, "When sanctions are lifted and activities in Iran are permitted, the company will examine returning to this country." The American-French company Schlumberger was among the last Western companies to leave Iran. Under U.S. laws, participation of American companies in Iran's oil and gas sector has been banned since 1995; however, the company was able to participate in Iran's projects because it is registered outside the United States. Schlumberger completed all its projects in Iran and exited the country in the first half of 2013. Nevertheless, some unofficial sources claimed that the company had maintained its relations with the National Iranian Oil Company. The company's revenue from Iranian projects reached $418 million in 2012, accounting for three percent of Schlumberger's total revenue that year. However, the U.S. Department of Justice fined the company $237 million for violating sanctions against Sudan and Iran after a six-year investigation. Schlumberger admitted in April this year that it had "intentionally violated" economic sanctions imposed against Iran and Sudan through its offices in Texas. The company was accused of exporting certain equipment to Iran and Sudan by circumventing U.S. sanctions between 2004 and 2010 through its offices in Texas. According to the recent comprehensive nuclear agreement reached between Iran and six world powers, part of the sanctions against Iran is set to be lifted, paving the way for the re-entry of Western companies into Iran's energy sector. However, according to Reuters, not all sanctions against Iran will be lifted at once, and if any issues arise in implementing the agreement, all sanctions will revert to their original state. Recently, Schlumberger announced that it would lay off 9,000 of its employees abroad due to falling global oil prices and company cost control. The company has over 108,000 employees. On Thursday, the company stated that Schlumberger's profits have improved better than expected, which caused a slight increase in the company's stock value in the New York market.