OMV says there's opportunity in Iran

VIENNA, Aug. 12 (UPI) -- The nuclear agreement with Iran offers attractive options for investments in the energy sector and a chance for Austria's OMV, the company said Wednesday.

OMV said in a financial report Wednesday its spending through the first six months of the year was down 23 percent year-on-year. Chief Executive Officer Rainer Seele said the operating environment for company in the weakened crude oil market "remains challenging."

Crude oil prices are significantly lower than last year because of slower economic growth from key economies like China, a rise in oil production from the United States and an expected rise in oil production from Iran.

OMV said its daily net production was up 1 percent year-on-year, though operations in troubled Yemen and Libya remain closed because of violence plaguing both countries at least since the so-called Arab Spring movement gained momentum in 2011.

In response to email questions, the company said there are opportunities on the horizon in Iran. The July agreement between Iran, the five permanent members of the U.N. Security Council, plus Germany, offers the possibility for more investments in an Iranian energy sector in need of "billions of [dollars] in investments" and technology to boost oil production in a sustainable way.

"That is also a chance for OMV," a spokesperson said. "OMV has the technological capabilities."

The managing director of a state oil company in Iran, meanwhile, said there are no plans to increase crude oil production as long as sanctions remain in place.

Investment firm ING reported Iranian oil exports could spike "in theory," though there are some technical and political obstacles. OPEC in its latest market report said Iranian crude oil exports will rise "eventually," and put further downward pressure on crude oil prices.

Roknoddin Javadi, managing director of the National Iranian Oil Co., said any significant developments on the production side depend on the status of international sanctions.

"Any increase in Iran's oil production depends on the removal of sanctions and [the country's] oil output will not undergo any change as long as sanctions are in place," he said.

Global energy companies are showing interest in a post-sanctions Iran, though most have said they're waiting on the wings. Iranian delegates met recently with Italian and Japanese companies considering their options in an eventual post-sanctions climate.

U.S. President Barack Obama is working to secure congressional support for the Iranian nuclear agreement reached last month with the four other permanent members of the U.N. Security Council, plus Germany. His spokesman, Josh Earnest, said last week it would be "unthinkable" of U.S. lawmakers cast votes in opposition of the deal.