Future of Iran’s oil industry hinges on Oman talks
By Mirghasem Momeni
Energy expert
Sanctions pose a serious obstacle to oil and gas exports and production. Currently, to optimize our oil wells, we need foreign technology and investment — which we lack access to. We are forced to procure goods and parts by circumventing sanctions or through countries that don’t meet quality standards.
The structure of our oil wells is highly complex because American and European companies previously invested in and developed them. Naturally, this has created a degree of dependency on their advanced technology. If other companies step in, the entire foundation must be overhauled, requiring significant time and cost. Thus, our situation has become extremely difficult.
Following Donald Trump’s recent plan to zero out Iran’s oil exports, it appears even small Chinese refineries are proceeding more cautiously — or may end up halting — oil imports from Iran. Some ports may also be pressured to reconsider accepting sanctioned tankers.
Under these sanctions and given Trump’s policies to tighten restrictions, our export challenges have doubled. The push to eliminate our oil exports extends to technology and oil industries as well. If we can’t export oil, foreign currency earnings will suffer. Since oil exports are tied to the national budget, livelihoods, and governance, Trump is leveraging this as a bargaining chip to extract concessions from Iran.
The question now is how much progress will be made in negotiations regarding Trump’s preconditions and the Islamic Republic’s demands. We must see how seriously both sides are about reaching an agreement. Regardless, continued sanctions do not benefit us — our economy has already been weakened by decades of sanctions. If we can’t export oil, securing essential imports will become difficult, and non-oil industries will also face instability and crisis.
Due to FATF and SWIFT issues, we’re also struggling to access blocked funds. So, as long as sanctions persist, even the minimal oil exports achieved by circumventing restrictions won’t resolve our problems.
The article first appeared in Persian on ILNA.