Executives from Royal Dutch Shell and Eni have met Iranian officials in Tehran over possible oil investments in the country when Western-imposed sanctions are lifted, the Financial Times reported on Wednesday.
According to the report, Shell representatives have discussed in June the company’s outstanding $2 billion debt to National Iranian Oil Company relating to unpaid crude oil shipments due to the sanctions and “potential areas for business co-operation should sanctions be lifted.”
“We would be interested in exploring with the government of Iran what role Shell can play in developing its energy potential,” the company said.
In May, Italian Eni chief executive Claudio Descalzi had also visited Tehran and met Iranian oil minister Bijan Zanganeh to discuss “the possibility of investing in Iran’s oil and gas industry again.”
“Mr. Descalzi reiterated our interest in Iran, provided sanctions were lifted and contract terms were mutually favourable,” the company told FT.
Iran currently produces 2.7 million barrels of oil a day and is allowed to export 1.2 million barrels a day according to an interim deal agreed in Jan. 2014.
Having the fourth largest proven oil and second biggest gas deposits, Iran wants to double its production by 2025. According to analysts, Iran can rapidly increase its production to 3.3 billion with foreign investment.
Iran and P5+1 powers reached an agreement in April to strike a deal on Iran’s nuclear programme before a self-imposed deadline of June 30.
If sanctions against Iran are lifted, it’s estimated that the oil prices could drop by $5-$15 a barrel.