Over the weekend, the six world powers (P5+1), European Union (EU), and Iran reached an agreement that lifted sanctions on Iran’s oil production that will see Western nations enter Iran for oil exploration and production for the first time in more than a decade.
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US Secretary of State John Kerry commenting on Iran's sanctions being lifted. Image from the US State Department. |
On 16 January, Iran completed steps needed to restrict its nuclear program by 98% in exchange for re-entry into the international trading market.
“Iran has undertaken significant steps that many – and I do mean many – people doubted would ever come to pass. And that should be recognized, even though the full measure of this achievement can only be realized by assuring continued full compliance in the coming years. In return for the steps that Iran has taken, the United States and the EU will immediately lift nuclear-related sanctions, expanding the horizon of opportunity for the Iranian people. And I have even tonight, before coming over here, signed a number of documents over those sanctions that the State Department has jurisdiction over in order to effect that lifting,” US Secretary of State John Kerry announced on 16 January.
With the lifting of the sanctions, Iran has its eyes set to increase oil output by an additional 500,000 b/d.
“We have reached Implementation Day of the Joint Comprehensive Plan of Action (JCPOA). Ever since Adoption Day, we worked hard and showed mutual commitment and collective will to finally bring the JCPOA to implementation. Today, six months after finalization of the historic deal, the International Atomic Energy Agency (IAEA) has verified that Iran has implemented its nuclear related commitments under the JCPOA,” EU High Representative Federica Mogherini and Iranian Foreign Minister Javad Zarif said in a joint statement.
Before the US and the European Union imposed oil sanctions, Iran could sell oil to 21 countries, including primary customers in Asia and Europe. This was taken over by the Saudis, Iraqis and Russians when sanctions were put into effect. Iran will now look to gain back its market share.
In November, Iran offered 52 oil and gas development projects in addition to 18 exploration blocks worth an estimated $30 billion at its Tehran IPC Conference held that month. The projects include 29 new and currently producing oilfields and 23 gas developments, with onshore fields accounting for 34 of the projects.
Read more:
EIA: Iran production to increase
Iran offers oil and gas projects
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