German companies are eyeing Iran’s oil industry by investing USD 12 billion
Market Research Iran – Several German oil and petrochemical companies have expressed their interest in the Iranian oil sector. Among these companies, BASF invested USD 12 billion in Iran. From the total investment, USD 6 billion will be allocated to establish petrochemical sites in southern parts of Iran.
Germany’s largest crude oil and natural gas producer, Wintershall Holding GmbH (a wholly owned subsidiary of BASF), has already signed a memorandum of understanding (MOU) with the National Iranian Oil Company (NIOC) to conduct R&D (research and development) on four oil fields west of Iran.
Iranian oil officials last year held a number of meetings with German companies in hopes to build strong ties and create growth opportunities among them. BASF’s managing director was among the official delegation visitimg Iran in 2016, headed by German Economy Minister Sigmar Gabriel.
If all agreements are finalized, the exchange between the two nations could lead to signing several contracts worth USD 12 billion.
Since Iran was released of sanctions by the UN and USA in January 2016 for it’s compliance on the nuclear deal, there has been a new wave of interest in investment in Iran by European and Asian firms. The deal, also known as the Joint Comprehensive Plan of Action (JCPOA) put an end to all nuclear-related sanctions imposed on Iran.
The promising prospect of trade with Iran has given major European countries ta great deal to explore the market potential in the country.