Published: Thu, December 08, 2016
Economy | By Melissa Porter

Shell to Study Iranian Giant

Shell to Study Iranian Giant

Citing an unnamed Iranian official, Reuters also said Shell had confirmed the signing of a memorandum of understanding with National Iranian Oil Co to "to further explore areas of potential cooperation", declining to give further details.

"These preliminary agreements come at the right time for [Iran's] Pres. Rouhani, who can leverage on the nuclear deal bearing fruits for Iran's economy despite Trump's election", says an analyst at Wood Mackenzie.

Royal/Dutch Shell Iranian chief of office and managing director of Iran's national oil company and United Kingdom ambassador to Tehran signed an oil MoU on Wednesday. South Azadegan's second phase and Yadavaran are expected to produce 300,000 b/d each.

"International markets remain under pressure but the Islamic republic's return brings stability for the world's energy provision as well as the country's economic health", he said at the signing ceremony. Total SA reached a non-binding $4.8 billion agreement to develop a natural gas field last month.

Iran signed a preliminary agreement with Shell on Wednesday to work towards developing major oil and gas fields as it seeks to boost its output. Despite the nuclear agreement, doing business in Iran is a challenge for western companies.

Iran will launch its first new-style tender to develop oil and gas fields since the lifting of sanctions after January next year.

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