Shell signs agreement with Iran

08 December 2016

Anglo-Dutch oil major is the second European firm to sign a deal with the Islamic republic

Royal Dutch Shell is looking at a re-entry into the Iranian energy sector after signing a memorandum of understanding with the Islamic republic’s state oil company.

The world’s fifth largest oil company, which exited Iran prior to the sanctions in 2010 is the second oil major following Total to sign an agreement with the National Iranian Oil Company.

The Anglo-Dutch oil firm confirmed the signing but declined to clarify reports that it would develop the South Azadegan and Yadavaran oil fields as well as the Kish gas field.

Total, which signed a heads of agreement with NIOC to develop phase 11 of the South Pars offshore gas field did not sign a new agreement on Wednesday but will begin talks on new oil and gas projects.

Iran is keen to develop the South Azadegan and Yadavaran fields that lie on the western border it shares with Iraq.

The deals come as a big boost to administration of Iranian president Hasan Rouhani, who is seeking re-election next year - amid concerns that the US under President-elect Donald Trump will enforce more sanctions on Iran and tear up the JCPOA.

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