Why oil investors won’t be rushing into Iran’s upstream just yet

Good reasons to invest in Iran’s energy sector abound. But for now discretion remains the better part of valour

The lifting of nuclear-related sanctions removed an important barrier to foreign involvement in Iran’s oil and gas industry, but attempts to attract investment and technology are unlikely to work as quickly as the government would like. Too many areas of uncertainty remain – beyond those associated with the oil price and geopolitics – including lingering financial sanctions and hostility to foreign investors within Iran. Nonetheless, there are good reasons for optimism. First, Iran has considerable production upside, much of which depends on the application of capital, technology and expertise that only international oil companies (IOCs) can realistically provide – secondary and tertiary pro