TEHRAN, Dec. 27 (UPI) -- Iran is drawing in more foreign investors eager to renew work in the energy sector because of the low cost of doing business, a corporate director said.
The National Iranian Oil Co. said it expects to award roughly a dozen new agreements for oil and gas developments as the appetite grows for working in Iran's oil and gas sector. Gholam-Reza Manouchehri, a managing director for the NIOC, told the official Islamic Republic News Agency international energy companies have more motivation for engagement as sanctions pressures ease.
"The costs of producing oil and gas in Iran are very low compared to other countries," he added.
Iran under the terms of a production agreement from members of the Organization of Petroleum Exporting Countries can keep working to regain its market share, while other producers are expected to make cuts.
The government aims to draw new investors to an oil sector previously restricted by sanctions. Oilfield services company Schlumberger, which has its main offices in the United States, recently signed a memorandum of understanding with an Iranian oil company for data-sharing. European players like Austrian energy company OMV and French supermajor Total have also waded into the Iranian energy sector by signing memorandums of understanding of their own.
An overview of the ease of doing business in Iran from the British government finds the Islamic republic is "the biggest new market to enter the global economy" in more than a decade. Most sectors of the Iranian economy hold significant opportunities and its oil and gas reserves will be a main component of economic growth, the report found.
European sanctions are easing quicker than those imposed by the United States. The official Iranian news agency reports the county's Oil Ministry finds few obstacles from the U.S. election of Donald Trump.