TEHRAN - Hossein Askari, a professor of international business, says “Iran is poised to supply gas to Europe,” but this entails “large investment in infrastructure” and developing South Pars gas field.

In an exclusive interview with the Tehran Times, Askari says as Europe “is looking to break Russia's monopoly” in supplying gas “piped gas from Iran looks increasingly attractive”.
Following is the full text of the interview:
Q: What are the impacts of Iran-5+1 nuclear deal on investment in Iran’ oil and gas industries?
A: There is clearly much interest in Iran's oil and gas sector. But there are negatives also.
Let me start with the positives. Iran is poised to supply gas to Europe. This will require large investment in infrastructure as well as further developing Iran's South Pars field (that is one field with Qatar's North Dome field, which has been developed much faster and more efficiently than Iran's part). The positive for Iran is that Europe is looking to break Russia's monopoly as its supplier of gas. Moreover, with the ongoing Russia-Ukraine dispute, piped gas from Iran looks increasingly attractive.
But the negatives are that there is an oversupply of oil and gas around the world because of Shale oil and gas and Saudi Arabia's high level of oil production. All this while the world economy is growing very slowly and thus demand is stagnant. And I would add that I personally do not see a big improvement in world economic growth for the next 3-5 years and there is still the danger of another big recession because of the enormous uncertainties in financial markets.
Another negative for Iran is its reputation in world markets. It will take time for Iran to re-establish its business reputation. This it can do by agreeing to international arbitration of commercial disputes and developing a gentler image in its respect for human rights.
I think oil companies will tread carefully. Yes, they will appear to be eager but they will wait and see the contract terms Iran offers. Will Iran agree to production sharing? On favorable terms? How will Iran differentiate between new fields and fields already in production?
Q: Which countries are eager to invest in Iran’s oil and gas industries?
A: I think that the major interest will come from the U.S. and Western Europe. Moreover, NIOC may access syndicated loans from foreign banks and the engage the services of the major U.S. oil service companies to enhance production from developed fields.
Q: Which oil and gas fields in Iran are more attractive to foreign investors?
A: The sectors that carry the least risk and provide a quick return and projects where the customers are willing to sign long-term purchase agreements. These would be enhanced recovery in developed fields and developing Iran's South Pars field and supplying gas to Europe through pipelines.
Q: Why there is no Iranian oil and gas company with world class technology?

A: Iran has not had access to world-class technology, either directly or through the operation of world-class oil service companies; and it has not developed its own indigenous technology. Please also remember that Iran has not entered into any joint venture agreements with world class companies in Europe or the United States. Its presence outside of Iran has been very limited, if at all. There is no getting away from it, Iran's business isolation has been very costly for the country