Volume. 11980

Foreign firms rushing towards Iran's oil market
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Iran is one of the energy super powers in the world with vast oil and gas reserves and the energy market has the potential for $50 billion of investment in the short term.
And now because of the changing political situation the nation it is seeing the return of foreign firms seeking their share.
Iran enjoys some of the world's biggest oil and gas reserves, however this industry has been hit hard by western embargoes since 2012. With the coming to power of Iran's new administration since August the country sets to change that and a new oil fair is testament to that.
The Iran Oil Show, the biggest oil event in Iran has just kicked off, this event has witnessed an increase by three times in the number of foreign companies present, compared to the previous year, and this is thanks to an interim nuclear accord reached in Geneva in November.
Since the agreement , with the P5+1 group of countries, came into effect in January Iran has been given limited sanctions relief and this is beginning the return of foreign firms to Iran. Fair organizers said 600 foreign firms have taken part in this year's oil fair compared to 195 in the previous year. Two main groups of foreign companies took part in this event one were those who were coming to Iran for the first time.
The second group of these international firms are those who previously worked on projects in Iran or those who never left and seek to increase their share in the market.
But the gap in the presence of the foreign firms has lead to the development of the local industry in Iran.
Iran's Oil Minister talked about starting more projects to ramp up the local industry.
Bijan Namdar Zanganeh said, "Iran wants to launch new projects in so it will improve the oil industry, and in-return all the local industries in the country will also develop from these projects leading to more exports and also jobs for Iranians."
The hiatus of foreign firms in Iran is going to come at a cost as they are found to be unreliable and the country's local industry is becoming a viable competitor.
(Source: Press TV)

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