Russian Oil Companies In More Trade Deals In Sanctions Countdown

16 Dec 2015

Press T.V. recently reported that Russia’s leading oil producer Rosneft CEO met to talk with Iran’s Minister of Petroleum, to develop the Iranian oilfields. This is yet another industrial development story involving international trading partners in the countdown to the celebrated lifting of sanctions on Iran. 

Chief Executive of Rosneft, Igor Sechin met Minister Bijan Zangeneh in Tehran on the 1^st December, pronouncing this oil giant’s willingness to invest in Iran’s oil industry. Whilst  details about the content of the negotiations are still subject to sensitivities, we cannot tell you any more at this time, but given the backdrop of wider co-operation in relation to developing trade routes with regional neighbours and reports earlier in the year of a possible Russian Federation deal on ‘oil for goods’ with Iran, Iranian companies in a range of sectors could benefit from these talks with increased import and export opportunities.

Executives from Russia’s primary oil company have now visited Iran twice in the space of a month, which would indicate that talks are progressing apace. In November, Rosneft representatives apparently discussed swaps of oil, gas and oil products.

Iran could take delivery of Russian oil, gas and fossil fuel derivatives via the Caspian Sea ports of Chabahar, Bandar Abbas, or elsewhere, which could be great news for our clients and customers.

We expect that such products could be for use in Iran’s northern provinces, which could boost jobs and the commercial sectors there.  In return, Iran may deliver a range of products to Russia’s customers amongst Persian Gulf states, where President Putin and Foreign Minister, Sergei Lavrov seek to expand its trade interests.  

The Petro Energy Information Network, Shana, said that Zarubezhneft (also spelt Zarubej Neft, depending on where you read the name), the Russian state owned oil company  is also interested in developing the Changuleh oilfield, along with Rosneft and the country’s second oil producer Lukoil.  This is a powerful grouping, which could emerge as a cartel, so readers should keep an eye on developments with the Joint Economic Commission of Iran and Russia if they have interests in this sector.

Iran’s Oil Plans

Iran plans $2.2 billion of investment in oil fields in Changuleh; Tehran’s strategic target will be to produce 50,000 barrels per day (bpd). This oil field is part of the Anaran onshore block which is also linked to the Azar field, which Iran shares with Iraq.

Lukoil has formerly had operations in Azar until 2011 after the US EU sanctions on Iran took hold.  Now they wish to resume these Islamic Republic operations, given recent lifting of specific financial sanctions reported here by the White Rose Group.  

According to Russian Energy Minister, Alexander Novak, Zarubezhneft will engage in several projects with a value of $6 billion for Iran’s oil industry once sanctions are finally lifted. Russia is moving quickly since July’s movement on sanctions.

Keep an eye on a vistit to Iran this month of Russia’s Minister of Trade and Industry, Denis Manturov, who will be leading one of Russia’s biggest trade delegations in recent years. Moscow is reported to be looking to clinch deals worth $21 billion since President Vladimir Putin’s visit to Iran for the first time in eight years.   His Energy Minister Novak has already referred to a number of projects worth $35 billion to $40 billion in the not too distant future.