Timing of Sanctions Lift Delays Iran's Oil Conference in London

The National Iranian Oil Company announced that due to the issue of 'the timing of the sanctions lift,' the conference intended to attract investment for Iran's oil and gas industries in London has been postponed. The National Iranian Oil Company has stated that the three-day conference introducing new oil and gas contracts in Iran will take place in London from March 3 to 5 (February 22 to 24). Officials from the company had previously announced that the first conference would be held in London and then in Tehran. Mehdi Hosseini, head of the Oil Contracts Review Committee at the National Iranian Oil Company, told Shana news agency that the new contracts will now be unveiled first at the Tehran conference on November 21 and 22. The Tehran conference will also announce 50 new oil exploration and production projects in Iran. Mr. Hosseini described the conferences in Tehran and London as having their own specific advantages and emphasized that there are no restrictions on the participation of foreign or Iranian companies in either of these conferences, although Iranian companies have a broader opportunity to participate in Tehran. He also stated that the main reason for the postponement of the London conference to February is the 'timing of the sanctions lift.' Mehdi Hosseini explained that since it is anticipated that sanctions will be lifted in January 2016 (early Bahman), the date for the London conference has been changed to February. Following the nuclear agreement between Iran and six world powers, major oil and gas companies around the world have expressed interest in returning to the Iranian market, although they cannot yet sign these contracts due to ongoing sanctions. However, Iranian officials hope that by introducing new contracts, they can create a favorable environment for their quick return after the implementation of the nuclear agreement. Roknoddin Javadi, CEO of the National Iranian Oil Company, stated on Saturday, October 10, to the National Iranian Oil Company news agency, Shana, that after further review, they have concluded that 'given the current circumstances and the strong interest of foreign companies to participate,' this conference will be held first in Tehran to introduce the details of the new oil contracts to foreign investors and international companies. He called the holding of the conference in Tehran a 'national move' and added that companies that miss this conference can participate in the London conference. According to Shana news agency, the difference between the new contracts and the previous buy-back contracts is that in the new contracts, as before, ownership of oil reservoirs is not transferred, but exploration, development, and production of oil and gas will be integrated to provide incentives for foreign investment. By offering these contracts, Iran also aims to transfer technology and increase the recovery factor of reservoirs, half of which are now depleted. In buy-back contracts, contractor companies had no share in management, and their investment and profits were repaid from the purchase of products. Mehdi Hosseini and Roknoddin Javadi, managers of the National Iranian Oil Company, emphasized regarding the presence of American companies at these conferences that there is no restriction from the government for cooperation with these companies under the new contracts. Iranian President Hassan Rouhani also stated on Saturday at the 'International Conference on Industrial and Trade Policies' in Tehran that Iran has never prevented American investors from entering the country, but the problem lies with them. American companies have not been allowed to invest in Iran's oil and gas industry due to sanctions. Even after the implementation of the nuclear agreement, these companies will still have less opportunity to invest in Iran compared to foreign competitors due to specific laws and regulations of the U.S. government and the remaining unrelated sanctions to Iran's nuclear program. The Obama administration also reminded American banks and world governments on Saturday that the nuclear agreement has not yet been implemented and sanctions against Iran remain in place, and Western companies should not rush to invest in Iran's oil industry and other sectors of the economy before the full implementation of the nuclear agreement.