Germany companies voice interest to invest $12bn in Iran’s oil industry

Several major oil and petrochemical companies from Germany have expressed their interest in investing in the Iranian oil sector.

The companies including BASF say they are ready to invest a total of $12 bn in Iran.

BASF has offered to invest in a six-billion-dollar project to establish petrochemical sites in southern parts of Iran.

The company’s managing director was a member of an official delegation that visited Iran in 2016 headed by German Economy Minister Sigmar Gabriel.

Wintershall Holding GmbH, Germany’s largest crude oil and natural gas producer and a wholly owned subsidiary of BASF, has already signed a memorandum of understanding (MoU) with the National Iranian Oil Company (NIOC) to conduct research on four oil fields west of Iran.

Iranian oil officials held a number of meetings with German companies last year. If finalized, the talks can lead to signing several contracts worth $12 bn between the two sides.

Since the implementation of the nuclear deal between Iran and P5+1 group of countries (Russia, China, the US, Britain, France and Germany) in January 2016, there has been a new wave of interest in investment in Iran by a growing number of countries.

The deal, also known as the Joint Comprehensive Plan of Action (JCPOA) put an end to all nuclear-related sanctions imposed on Iran.

The promising prospect of trade with Iran has prompted major European countries to explore the market potential in the country.