Iran agrees Oil Contract as National Iranian Oil Co. Signed a New Investment Proposal

Iran: National Iranian Oil Company agreed upon the deal of around USD2.2 billion with Persia Oil & Gas Industry Development Company for boosting the output of three fields along the country’s western border with Iraq. Iran has conveyed to OPEC that it wants to produce about 4 MMbopd to regain its pre-sanctions share of the market. The International Monetary Fund has said that economic conditions in Iran are improving substantially and projected a growth of at least 4.5% in 2016-17.

TechSci Research depicts that Iran has positioned themselves to pump 4.1 MMbopd to 4.2 MMbopd which also influence the foreign investors to invest in the country, thereby creating the market for oilfield services. On account of removal of sanctions, advent of foreign players and anticipated rise in capital inflows, oilfield services market in Iran is expected to grow by 2021. Further, as a result of signing of a Joint Comprehensive Plan of Action (JCPOA) with P5+1 nations, in 2015, Iran is cutting down on its nuclear enrichment activities and is focusing towards increasing its crude oil production. This in turn is expected to result in augmented demand for oilfield services during 2016-2021.

According to TechSci Research report, “Iran Oilfield Services Market By Application, By Type, Competition Forecast and opportunities 2011 - 2021”, oilfield services market in Iran is forecast to grow at a CAGR of more than 13% during 2016-2021, on account of anticipated increase in oil & gas E&P activities. In 2015, onshore oilfield services segment accounted for a majority share in Iran’s oilfield services market; however, the offshore oilfield services segment is forecast to exhibit higher growth during 2016-2021.