Repeated Cancellation of Iran's Oil Conference in London Due to 'Visa Issuance Delays'

A senior oil official in Iran announced that the Iranian oil conference scheduled to be held in London has been canceled for the umpteenth time due to delays in visa issuance by the British Embassy, and it is likely to take place next May, late spring. According to a report on Saturday, January 30, by Reuters, Ali Kardor, deputy of the National Iranian Oil Company, told the weekly 'Seda' that foreign companies might be invited to submit their proposals in May. Kardor stated, 'The London conference has been canceled because the visa issuance section at the British Embassy in Tehran is still inactive, and the embassy could not issue visas for representatives of Iranian companies. They have to obtain visas from a third country.' The announcement of the cancellation comes as the Tehran conference has already been postponed five times due to uncertain sanctions conditions. Iranian oil officials announced in September 2015 that this conference would be held from February 22 to 24 in London. In January, international sanctions against Iran were lifted as part of the Islamic Republic's nuclear deal with six world powers in exchange for limiting Iran's nuclear activities. Now, to strengthen its economy, Iran has considered special conditions in its new oil contract model to attract foreign companies to its territory after the sanctions were lifted. Iran, a member of the Organization of the Petroleum Exporting Countries (OPEC), intends to increase its production immediately by 500,000 barrels per day and subsequently by the same amount. Approximately 135 active energy companies, including British Petroleum, Total, Eni, and Repsol, participated in a conference in Tehran in November to learn about the conditions of Iran's new oil contract model. Some details about this contract were unveiled at the conference, but Iranian officials promised that further details would be announced at the London conference. The new oil contract model offers more flexible conditions regarding pricing and investment risk compared to the 'buy-back' model, which had prohibited foreign companies from owning shares in Iranian companies and registering reserves for nearly two decades. Under the new contract, the National Iranian Oil Company retains ownership rights over resources, and foreign companies are not considered owners yet. However, in some cases, this model allows foreign companies to register reserves. Meanwhile, Kardor responded to the question of whether the cancellation of the London conference was 'partly due to increased pressure from hardline groups' within Iran by saying, 'We are ready to talk with critics if necessary and hear their opinions to resolve issues.' Critics of President Hassan Rouhani are strongly opposed to the new oil contract model. Some analysts say that Rouhani's government is determined to resolve disputes through dialogue. The government approved the draft of the new oil contract model in September, but according to Kardor, this draft must also be approved by the board of the National Iranian Oil Company. Kardor stated, 'New proposals will be presented in May. There is no need to hold a conference abroad after this. Proposals will be announced in the legal stages. Joint oil fields with neighboring countries are a priority for us.' In related news, oil prices continue to decline; stock market crashes in Asia; the signing of the first new oil sales contract with Europe; Iran's oil exports are at their 'highest level' in the past two years.