With an investment plan worth $200bn, Iran’s oil industry is the most attractive market for international investors, a senior energy official has said.
In comments carried by state news agency, IRNA, Mehdi Hosseini, in charge of revising Iran’s oil investment contracts, outlined the relative advantage of oil recovery in Iran, saying it is highly profitable even at times of price slumps.
“The cost of a barrel of oil production is close to $40-50 in some countries but this rate is very, very low in Iran,” the Mehr news agency quoted him as saying.
Hosseini said extracting oil and gas from specific geologic formations such as shale gas, shale oil, oil sands and heavy oils costs more exorbitantly, making recovery uneconomical unless prices rise above $80.
“Investment in Iran’s oil and gas projects even during further price declines has very high economic viability,” he stated.
The official said Iran had made investments more attractive by modifying its energy contract formulas and increasing profitability.
“Iran is after signing win-win contracts with international companies in case the sanctions are voided,” he said.
“According to our estimates, investment opportunities in Iran’s oil and gas industries are worth about $200bn.”
