Iran open to work with US companies: Deputy Oil Min.

By Zeynep Duyar, Huseyin Erdogan and Handan Kazanci

ISTANBUL

Iran welcomes BP and American companies to collaborate with Iranian companies for investment in Iran's oil and gas industry, Amir Hossein Zamaninia, Iran’s deputy minister of petroleum for trade and international affairs said Wednesday.

“Iran and BP have a long and lasting historical relationship and we would invite not only BP but also American companies [to Iran],” Zamaninia told a media conference on the sidelines of the World Petroleum Congress, of which Anadolu Agency is the global communication partner.

“We would welcome them to come and forge a partnership with Iranian companies,” he said.

“We think the situation is normal enough now for major international oil business to engage in Iran,” he added.

The country's oil and gas production was hampered in the past few years because of international sanctions, but aims to revive its oil and gas sectors in the aftermath of sanctions relief following the nuclear deal between Iran and P5 +1 countries signed in July in 2015.

Iran holds the world's fourth-largest proven crude oil reserves and second-largest natural gas reserves, according to the U.S. Energy Information Administration.

BP plans $15 billion in project expenditure

Speaking at the same press conference, CEO of BP Bob Dudley said the company has “six or seven upcoming major projects” for next year.

“There are lots of good opportunities around the world,” Dudley said, noting that energy giant Total made “a very significant investment” with Iran.

Iran signed a new contract at the beginning of July to develop Phase 11 of the world's largest gas field development project, the South Pars gas field with French Oil Company, Total and China National Petroleum Corporation and Iranian company Petropars.

According to Dudley, in terms of supply and demand, the industry would see a reduction of inventory toward the end of the year.

“I think the market actually is balanced today. It has more to do with the inventorial level, but I am not speaking as an OPEC member,” he added.

The BP head said that the company would spend $15 billion in projects this year, and in 2018 and 2019.

“We have got our plate full for a while now, and we have some other plans. We just have to stay on our capital diet right now,” he added.

He said that if lower prices continue to drop further, energy companies would have to adopt the new price environment.

Energy companies need to have “flexibility” and be “very disciplined” in a period of low oil prices, he concluded.