Tuesday, July 16, 2002

Unsure Future For Iran Oil Project
On May 21st Asdullah Salehi-Fouz, the managing director of Pars Oil and Gas Company, said that there were an estimated 5bn barrels of oil reserves there, ahead of planned development projects in the area. He said a second oil well was being drilled and could be followed by a third, depending on the success of the other two.
"With the investments already made and those about to be secured … Iran's crude oil production capacity and its quota in OPEC will not decrease," he said.
Buyback deals like this one permit foreign companies to skirt a constitutional ban on foreign investment, allowing them to take a profit from the project's output, recouping their investment.


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