By Manon Sasso
Manouchehr Takin, recognised world expert in technical and economic aspects of oil supply and demand, with 40 years’ oil and gas industry experience offers us an exclusive interview ahead of his participation at the 5th Iran International Oil, Gas & Petrochemical Summit 2017.
1- What should new entrants do?
They should demonstrate that they are able to provide capital (up to hundreds of million or even billions of Dollars), while the returns will be over a period of several years. They will also need to have a track record of the successful application of ‘new technology’ and the implementation of field development projects in other world oil provinces.
2- What are the challenges facing new entrants?
The challenges facing for the new entrants include:
Imperfect understanding of Iranian hydrocarbon industry and its institutional arrangements.
Technical challenges, e.g. choosing a suitable IOR and EOR method for Iran’s old producing fields. Basic research and pilot operations might be required choosing a local partner.
3- What are potentials does Iran hold?
Huge volumes of proved oil and gas reserves that can support higher rates of production.
Government is keen to attract investors and has improved its regulatory terms with the new Iran Petroleum Contract model.
There is much less competition among new entrants while the US government is not allowing the American oil/gas companies to enter Iran.
4- What is the geopolitical challenge?
In spite of the internationally approved Joint Comprehensive Plan of Action on Iran’s nuclear technology, the United States continues to impose its own sanctions on the country and is trying to discourage new investors to enter Iran.
Most importantly, the US is putting pressure on all banks not to provide even ordinary financial services related to Iran.
If you want to learn more, please register to IOGP 2017 Summit!