Abu Dhabi: As Iran and six world powers clinch a historic nuclear deal in Vienna, oilfield services companies from the UAE see opportunities but are waiting to see how things unfold in the country in the coming days.
Al Mansoori Petroleum Services, a prominent oilfield services company in the region said Iran provides opportunities but they are not going to chase them or knock on their doors as sanctions are lifted.
“If they approach us, we will not say no to them. We were active in the country for many years and they know us well. We are not in a hurry to go to Iran,” said Ibrahim Al Alawi, Deputy Chief Executive Officer of Al Mansoori Petroleum Services speaking to Gulf News.
He said things are very slow in the country because of sanctions. “It is difficult to do banking transactions and payments. We will wait and see how things happen.”
The Abu Dhabi-based company is active in more than 20 countries across the globe including in the conflict ridden zones in the Middle East.
Al Alawi said trading companies would be the immediate beneficiaries because of the lifting of sanctions. “Trading from Dubai and Abu Dhabi will pick up. There will be an increased demand for spare parts and other goods.”
An important member of the Organisation of the Petroleum Exporting Counties (Opec), Iran has the world’s fourth largest proven oil reserves after Saudi Arabia, Venezuela and Canada.
The country’s annual production is estimated to be about 2.8 million barrels per day (bpd). Exports stand at about 1.1 million bpd, half their pre-sanctions level, according to data from the US energy department.
Great Waters Maritime, a Dubai-based oilfield services company said they have initiated talks with Iranian companies for a possible tie up to execute projects in anticipation of easing of sanctions.
“There will be a lot of opportunities for oilfield service companies from the UAE once market opens. Production cost is very competitive in Iran like in the UAE,” said Ashik Subahani, Managing Director of Great Waters Maritime LLC.
He said there are a number of European oil companies based in the UAE who are keen to restart their business in Iran. “Iran oil sector is big. A number of oil related companies have relations with National Iranian Oil Company. It is a big opportunity for them.”
Iran and the UAE have historical trade links with non-oil trade between the two countries amounting to $17 billion in 2014.
Meanwhile, Abu Dhabi Terminals, which operates and manages Khalifa Port Container Terminal, said it is ready to facilitate increased levels of trade with Iran as it has done in the past within the legal framework as set out by relevant international and local authorities.
“The shipping line network to support the trade is already in place at Khalifa Port and offers opportunities for shipping lines and trade customers that want to capitalise on the potential economic boost that may emerge from lifting the sanctions,” said Martijn van de Linde, Chief Executive Officer of Abu Dhabi Terminals.
