TEHRAN, Aug. 6 (UPI) — With hundreds of business executives in Tehran, the Iranian government said it expects to broker some form of energy deal with Italian companies.
Senior executives, including Eni Chief Executive Claudio Descalzi, were among the hundreds of representatives who joined Italian Foreign Minister Paolo Gentiloni on an official visit to Tehran. Eni had a $550 million deal to help Iran develop its Darkhovin oil field, expected to produce 160,000 barrels per day, before suspending operations in 2010 under sanctions pressure.
With sanctions pressure easing in response to last month’s multilateral nuclear deal, Iranian Oil Minister Bijan Zangeneh said Italian companies were among those in Europe expected to reinvest in Iran.
“By removal of the sanctions, Iran will be able to export its oil as feedstock for Italian refineries,” he was quoted as saying by the oil ministry’s news website SHANA. “Before the sanctions [were imposed], Italian companies had a successful presence in construction of petrochemical plants, transfer of technical know-how, [manufacturing of] equipment and financing petrochemical projects [in Iran].”
Eni in 2013 said it was the target of scrutiny from the U.S. government because of its operations in Iran. At the time, the company said it was conducting oil and gas operations in Iran, noting it’s been engaged there “for several years” through service contracts with the National Iranian Oil Co.
Eni reported 2012 production of 3,000 barrels of oil equivalent from Iran, which represented less than 1 percent of its total production for the year.
A company spokesman refused to offer on-the-record comments on Descalzi’s visit to Tehran.
Italian Economic Development Minister Federica Guidi was quoted by the semiofficial Mehr News Agency as saying investment doors could be opening.
“Italy wants to revive its $6.4 billion trade balance with Iran of before sanctions,” she said.
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