Iran needs some $11 billion in investments to develop oil fields along its border with Iraq, Bloomberg has reported, citing the new head of the National Iranian Oil Company Mohsen Khojastehmehr.
Where the money would come in remains as of yet unclear after Trump administration sanctions drove foreign companies out of the country. The sanctions are still in place under Biden despite an attempt to clinch a new nuclear deal. The latest reports in this respect suggest the talks may be heading for a collapse.
The Independent reported last week that Iran is in no hurry to return to the negotiating table and continues to build its nuclear capabilities. The report also suggested Tehran may see the potential deal as “more trouble than it’s worth.”
Meanwhile, however, the country continues to work on boosting its oil production despite the sanctions. The development of the border fields could add as much as 1 million bpd to Iran’s total output, according to Khojastehmehr.
Earlier this month, the Iranian oil ministry tried a new approach to attracting new investment in its energy industry. The approach, as presented by oil minister Javad Owji, involved the offer of crude oil in exchange for goods or investments in more oil production.
The plan to attract investments in oil and gas in exchange for output follows another announcement made by Iran’s new oil minister last month. In it, Owji said Iran planned to attract some $145 billion in local and foreign investments in its fossil fuel industry.
“We plan to invest $145 billion in the development of the upstream and downstream oil industry over the next four to eight years, hence I welcome the presence of domestic and foreign investors in the industry,” Owji said during a meeting with executives from China’s Sinopec.
Iran shares four oil fields with Iraq, including Azadegan, the biggest shared field, which has reserves estimated at 32 billion barrels.