Industry experts at Seatrade conference have turned their attention to the mixed prospects of multi-billion dollar contracts Iran's offshore oil and gas sector – once sanctions are lifted.
The market in Iran for workboat operators and energy service companies holds great potential but there are many obstacles ahead, delegates at the Iran Energy Focus session at the Seatrade Offshore Marine Workboats conference said yesterday (October 6) at the Abu Dhabi National Exhibition Centre (ADNEC).
The panel discussion entitled, 'Iran Energy Focus: Senior Executive Briefing' sparked an interesting debate, as industry specialists dicussed how the regional oil and gas industry can participate in the Iranian market, once sanctions have been lifted.
One of several key challenges of tapping into these lucrative markets will be abiding by Iran's 51 per cent local ownership rules.
Dr Amir Kordvani, a lawyer with Clyde & Co, said: "This could mean that companies operating vessels in Iranian waters would need to have a local office with a minimum of five employees on the ground. Other requirements remain unclear at this point, however."
Patrick Murphy, another lawyer with Clyde & Co revealed that even if the sanctions were lifted on the likely 'implementation day' – currently December 15 – some US sanctions will remain in place.
"These will prevent US personnel from undertaking transactions in Iran. EU sanctions, however, would be lifted completely. Meanwhile counterparty risk is another potential area of concern," he said.
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