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Iran to Sign Six Oil Sector Deals with International Energy Companies

Tehran: Iran is all set to sign six agreements with foreign companies for the development of its oil sector projects. These international energy firms would team up with local companies for the development of the major fields while Iranian companies would be the project leader for the expansion of small fields.

TechSci Research depicts that the advent of foreign players and anticipated rise in capital inflows, oilfield services market in Iran is expected to grow by 2021. Lifting up of the sanctions, along with decline in crude oil prices is a major reason pushing growth in oil & gas E&P activities in Iran. In addition, cheaper oil & gas exploration cost in Iran make it a profitable venture for US based international E&P companies to explore oil in Iran, as the cost to produce a barrel of crude oil in Iran is around $12.90 as compared to around $36.90 in the US.

According to released report of TechSci Research “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. 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. 

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