Iran's high risk oil field offer

AP/Fuel Fix:
Iran’s national oil company said Monday that it has offered 50 oil and gas fields to international bidders, the first time it has done so since last year’s landmark nuclear deal with world powers.

Also Monday, the country’s deputy oil minister welcomed a preliminary agreement by OPEC nations to limit output to between 32.5 million and 33 million barrels per day. The deal by the Organization of Petroleum Exporting Countries was reached in late September, with the aim reducing a global glut that has depressed oil prices for over two years.

The deputy minister, Amir Hossein Zamaninia, told reporters in Tehran that the agreement was “small step, but in the right direction.”

Iran has been trying to restore its oil industry since emerging from international sanctions over its nuclear program earlier this year. The country, with an oil output of 3.85 million barrels per day, initially said it would only consider a ceiling after it reaches 4 million barrels per day, its pre-sanctions level.

Meanwhile, Iran’s Oil Ministry announced Sunday it will invite foreign companies to bid for oil and gas projects for the first time. On Monday, the ministry released details, saying this would include 29 oil fields and 21 gas fields.

The ministry has said foreign companies should submit their applications by Nov. 19, and that successful companies would be announced on Dec. 7.
While the Iranian sanctions have been lifted, it is still a high-risk offer.  The world is awash in oil at this time and there is no assurance that Iran will not be back in its pariah state status soon.

Missiles that it supplies it proxy forces in Yemen are already being fired at US ships.  Iran is also at odds with Persian Gulf Arab states that oppose its expansionist terrorist agenda.  Iranian boats have been harassing US ships in the Persian Gulf.

They might get some interests from the Chicoms but that is about it.


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