Developers "should temper expectations" on IranNews // July 24, 2015
Oil and gas developers hoping for work in the country now a final agreement with Iran has been reached should proceed cautiously for the time being says George Booth, oil and gas partner at Pinsent Masons in the UK.
However, Pinsent Masons agrees that the deal will "pave the way for a new era of Iranian natural resources" and end years of debilitating restrictions on trade, opening the door to international developers queuing up to re-enter the potentially lucrative market.
"Iran is ambitious about the contribution it can make to global hydrocarbons with some sources estimating one million barrels per day hitting the export market in just two months once sanctions are lifted," said Mr Booth. "Even with a more conservative outlook, today’s news could be a game changer at a time when the global oil industry has been in a state of flux.
"While this news brings reason to celebrate, developers are well advised to temper enthusiasm until the complex web of sanctions are fully unwound over the coming months.
"Snap-back provisions which essentially give the P5+1 the power to push the reset button should they regard Iran to be reneging on aspects of the final deal should be considered as they could leave developers exposed to sanctions suddenly leading to costly fines and severe penalties."