OMV not impressed by new Iran Oil Contracts

By John Lee.

The Chief Executive of Austrian energy group OMV has said that Iran’s oil contracts are not yet suitable for his company to invest in planned projects in the country.

Rainer Seele (pictured) told Reuters on Wednesday:

This process is still ongoing; this is taking quite a long time… We have not yet defined a clean framework for the projects that are interesting for us …

“We can make an investment decision only when we really know what the framework and the conditions are.

OMV has signed an MoU with the National Iranian Oil Company (NIOC) for several projects in the Zagros area in western Iran, including the Cheshmeh Khosh and Band-E-Karkheh fields where OMV had started operations in 2001, and the Fars field in the south.

Iran still owes money to OMV to reimburse it for past appraisal and exploration activities, and the return of this money is still under negotiation. Seele commented:

“If you owe me money and you’re not giving it back to me and then want to proceed with me in the future, would you think that’s a good combination?

“We are in intensive talks (about this) that have not yet achieved their objective.

(Source: Reuters, OilPrice)

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