Let the Race for Irans Untapped Energy and Transport Potential Begin

NITC The long awaited day when the economic sanctions against Iran will be lifted has come as the country has met all the necessary steps to start the implementation of the Joint Comprehensive Plan of Action, the Vienna-based International Atomic Energy Agency said on Saturday. Now that sanctions are being lifted, the worlds fourth richest country with oil and gas reserves will be able to return to commodity trading and will see around USD 50 billion of assets overseas get unfrozen. What is more, Irans efforts to attract foreign investors, especially those from Europe, to inject their capital in the countrys bountiful energy and transport projects will now be unhindered. These include Danish shipping and energy conglomerate Maersk whose representatives have freshly visited Iran in an exploratory mission that is likely to result in tapping of Irans massive energy potential in the Caspian Sea. In particular, the Irans shipping giants NITC and IRISL, are set to benefit the most as now they are free to unleash their fleets to international waters and boost the countrys oil exports. Iran will have an increase of 500 thousand of barrels of crude oil per day, once the sanctions on the banking system are officially removed, Managing director of national Iranian Oil Company (NIOC), Roknoddin Javadi said. He added: we are currently monitoring the problems and obstacles our banks are facing with, since it will take few weeks to be solved and once there would be no other major problem, Iran would definitely be ready to boost production and export. According to him, there is no longer any technical problem with respect to the pipelines and facilities. Regarding the lifting of sanctions and all the undertaken evaluations, it is predicted that by the middle of the next Iranian calendar year, the first oil contract within IPC model, will be signed, Javadi said. Iran’s return to the market would be welcome in terms of increasing production in an oversupplied market, notably with regards to difficulties in placing and discharging cargoes ashore, Gibson Shipbrokers says in its tanker report. However, with more Iranian crude, comes the release of more Iranian tonnage. Nevertheless, the Iranian fleet will need to re-establish compliance with international standards if it is to enter the mainstream spot markets. Latest reports indicate that Iran is also in talks with European counterparts Belgium, France and Germany on construction of liquefied natural gas (LNG) tankers, including floating LNG units (FLNGs) and floating production, storage and offloading units (FPSOs). World Maritime News Staff