I found this today on the US Government Accountability Office's website and found it interesting.
Iran's oil and gas industry is vital to its economy and government. Oil export revenues have accounted for more than 24 percent of Iran's gross
domestic product and between 50 and 76 percent of the Iranian government's revenues in recent years. Iran has the world's third largest oil reserves
and second largest gas reserves, according to the Congressional Research Service (CRS), and is the world's fourth largest producer of crude oil,
according to the Central Intelligence Agency (CIA) World Factbook. However, Iran has not reached peak crude oil production levels since 1978.
Very interesting, not only is Iran in possession of massive fossil fuel resources, but these stores are largely untapped and the infrastructure
required isn't in place.
What an enormous potential for investment by foreign companies.
One small snag for the US though:
the Deputy Minister of the National Iranian Oil Company said in November 2008 that Iran would need about $145 billion in new investment over
the next 10 years to build a thriving energy sector
Iran Sanctions Act (ISA)
U.S. law restricts U.S. firms from investing in Iran's energy sector through a variety of sanctions administered by the Department of the
Treasury to discourage Iran from supporting terrorism and developing nuclear weapons. In addition, the Iran Sanctions Act, as amended, provides for
sanctions against persons, including foreign firms, who invest more than $20 million in Iran's energy sector in any 12-month period.
So they need $145 billion but firms are only allowed to invest $20 million, no wonder Iran has a chip on its shoulder!
Here are the firms that have been investing in Iran's Oil Industry:
After learning about Iran's resources, and the possibility for big oil to turn huge profits, have a look at the map below and think about the 'War
on Terror', if you're like me you'll really look at it in a different light. Iran is bordered by Iraq and Afghanistan, another reason for Iran to
be p'ed off!
I feel that this is a project decades in the making. Iran will be vilified and ostracised, treated like Iraq, and perhaps 15, 20 years from now we'll
invade them and take the oil, just like Iraq.
If you don't allow a country to develop it's main resource, you're only gong to antagonise them, this is all part of the plan!
However the majority of these companies are disregarding the guidelines, investing far more than $20 million a year (since they are not US
registered)!! Here are some highlights:
Royal Dutch Shell/
Development of South Pars natural gas fields
25% stake in project, with an estimated total cost of $10 billion.
Stated that it has not yet decided whether to proceed.
Development of South Pars natural gas fields.
Possible 30% share of a $4 billion project
Confirmed that Total has been a significant investor in the Iranian energy sector for the past 20 years. Confirmed discussions with Iranian
authorities regarding development of South Pars phase 11 and the Pars LNG project. Does not anticipate new investments in the near future.
Completed exploratory activities in the Tusan block.
Spent $178 million before returning its concession.
In 2004, a subsidiary of Petrobras signed service contract to explore Tusan; contract expired in July 2008. Confirmed project costs of $178 million.
Currently no activities or plans in Iran.
For the most part though, there was no response from the 41 companies cited in the report
Daewoo Shipbuilding and Marine Engineering/South Korea
Construction of crude oil tanker ships.
Contract for $384 million. Total cost of Iranian tanker building program estimated at $2.4 billion.
Confirmed delivery of tanker ships in August 2009, at an estimated contract cost of $384 million. No other sales planned.
Watch this space folks, you're looking at TPTB's next target!
All the best, Kiwi!