Many UK oil and gas contractors and companies are keenly looking at Iran for new business opportunities. Iran has announced that it will be looking at investments worth $600 billion in the next ten years. These investments will focus on infrastructure development and trade. This will open up a world of opportunities as Iran’s oil and gas sector has immense potential.
EY Head of Infrastructure and Consultancy Amanda Clack stated that there are many opportunities awaiting UK businesses in Iran. However, the country will be looking at contractors and businesses that can guarantee deliverability. This, in turn, will ensure that the risks associated with any project are minimised, with Iran looking at companies that have the professionalism, skills and ability to conform to high standards and regulations.
The British Iranian Chamber of Commerce believes that due to the lack of banking facilities between the UK and Iran, there is a problem facilitating trade between the two nations. This hurdle is because the main sanctions imposed by the US were retained even though Iran had come to a deal regarding its nuclear programme in late 2015. Nonetheless, there are certain banks in the UK that are willing to do direct transactions with Iran with certain restrictions. However, after the US presidential election, banks have become more cautious.
In the meantime, the UK is ensuring its oil and gas security through trade with Iran. The National Iranian Oil Company has sold natural gas condensate and crude oil to BP and an unnamed British oil and gas company.
With Iran boosting its production and looking to enhance its oil and gas exports, it will be seeking new customers and collaborators. The country is hoping to increase its daily oil output to about 6 million barrels a day over the next five years, but this will depend on whether the country can attract investments from major oil and gas contractors and companies. Iran is also looking to secure investments to develop its natural gas sector.