However, Andris Piebalgs added future cooperation between the European Union and Iran over energy supply is dependent on finding a solution to Iran’s nuclear dispute.

“We should all increase our activities to find a solution to this issue,” Piebalgs told reporters on the sidelines of an energy conference of the Energy Community, hosted by the Greek Ministry of Development in Athens, AP reported.

“At the same time, we definitely see Iran will be a source of supply of energy resources to the European Union, and Turkey as a neighboring country of Iran is definitely well placed to negotiate such a type of supply,” he said.

Iran, which has the world’s second-largest reserves of natural gas, could one day supply gas through the planned Nabucco pipeline running through Turkey and into southern Europe. The pipeline is seen as vital to weaning Europe off dependence on Russian gas.

The European commissioner for energy said that Iran has a great long-term potential to become a supplier of energy to the West. Piebalgs said Iran remains a major potential partner for Europe in supplying natural gas, where demand is growing rapidly.

Still Main Energy Partners

Despite US pressure giant European firms involved in Iran energy development projects still outnumber companies from other countries.

A report released by the United Nations Conference on Trade and Development on Sept. 27 suggests that three out of five companies involved in giant projects in Iran’s gas and oil fields are from Europe.

Quoting the report, Fars news agency reported Saturday that French oil and gas company Total has an 89 percent share in foreign owned production in the country. Norwegian Statoil has a 55 percent and Italian ENI a 29 percent shares in the national oil and gas projects.

Names of two non-European companies are seen among top five foreign firms operating in country’s oil and gas fields.

South Korean LG International has a 75 percent shares while the share of Malaysia’s Petronas has not been mentioned.

Iran is the third among top 25 countries in total proven oil reserves. The country has 340 billion oil barrels of oil and oil equivalent. Russia stands first with 410 billion barrels of oil and gas, followed by Saudi Arabia with 375 billion barrels.

The report further stressed that the room for overseas maneuvers by oil and gas conglomerates from industrialized countries in the hydrocarbon industry is shrinking. With crude oil staying above $70 a barrel, such traditional transnational corporations (TNCs) are losing bargaining power to oil-producing countries eager to use climbing demand to capture a larger share of the rents. Traditional TNCs are also facing new competition in the form of TNCs from the South.

EU needs Iran’s natural gas

Yet, Turkish Minister of Energy and Natural Resources Hilmi Guler said, “Transferring Iran’s gas to Europe through Turkey is a finalized business deal.”

“The EU needs Iran’s natural gas, and Turkey needs the money it can gain from buying and selling this product,” the Turkish daily ‘Yeni Shafaq’ quoted as he saying.

The daily that is close to the Turkish Government in an article titled “This U.S. law is not valid in Turkey”, wrote, “Despite the strict sanctions for firms investing in energy fields in Iran in accordance with this ratification of the U.S. House of Representatives, Turkey seems to be determined to continue, and even boost its cooperation with Iran in energy field.”

Turkey has said the Iranian and Turkmen gas can be used for the planned 4.6 billion euro ($6.3 billion) Nabucco project, which will carry gas across Turkey and the Balkans to central Europe and is backed by the European Union.