5 August 2015 - 20:56
  • News ID: 245133

Italy, Iran Pledge to Revive Energy Ties

Italy, Iran Pledge to Revive Energy Ties

TEHRAN August 5(Shana)--Iranian Petroleum Minister Bijan Zangeneh met with senior Italian executives as part of a high-profile Italian delegation in Tehran.

Through the meeting, Iran and Italy moved toward reviving close energy relationships now that Western economic sanctions are expected to be lifted by year end.

After the Wednesday meeting, Zangeneh hailed the numerous visits to Tehran by European delegations as "the green light of [European] governments to companies and the private sector" for restoration of activities in Iran. 

Addressing a press conference, the Iranian official spoke about the highlights of the meeting, saying that boosting oil, gas and petrochemical relations were the hot topics discussed during the session. 

"In the past, Iran had a successful partnership with Italian companies for developing South Pars phases as well as southern oilfields like Darkhoein oil field. 

He said during the talks, the two sides agreed on restoring the level of energy relationships they enjoyed in the pre-sanctions era, and added, "[Iran's] oil industry could use the cooperation of Italian companies in the Caspian Sea and for enhancing oil recovery." 

He underlined consumption of Iran's crude oil by Italian refineries before the western sanctions were imposed on Iran, and said, "By removal of the sanctions, Iran will be able to export its oil as feedstock for Italian refineries."

Zangeneh said Iran invited Italian companies active in the petrochemical industry as Tehran "intends to create a new leap in the industry with the cooperation and investment of foreign companies."  

"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]," he said. 

Manufacturing the parts needed in the petroleum industry by Iranian-Italian companies was also discussed during the meeting, he told the reporters, adding, "The parts will not only be used to supply the Iranian market, they will also be exported to the regional markets."

Italian Foreign Minister Paolo Gentiloni, the latest of a series of European officials visiting Tehran for restoration of mutual ties, was among the Italian top officials who met with Iranian minister of petroleum in hopes of reviving nearly dormant Italy-Iran economic relations.

A 300-member business delegation, including senior executives of Italy’s oil giant, ENI, arrived in Tehran on Tuesday to hold talks with Iranian officials. 

The Italian delegation also includes senior executives of SACE insurance company, as well as creditable Italian banks, automakers, pharmaceutical companies, and other companies active in such areas as water, electricity, oil, gas, and petrochemicals.

Since the July 14 accord that raised the prospect of banking and trade sanctions on Iran being lifted, senior government ministers from France, Germany and Serbia have been among visitors to Iran, perhaps around the end of this year. 

The nuclear agreement “will serve as an opportunity for a gradual improvement in the two countries’ relations," said Gentiloni before his visit, Mehr news agency quoted him as saying.

The nuclear accord provides for an easing of sanctions in return for restrictions and monitoring of Iran's nuclear program after years of being frozen out of the global banking system and most trade with the West.

Before the sanctions were imposed, ENI was a partner to Iran's oil projects and had taken part in development of phases 4 and 5 of South Pars gas field as well as Darkhoein oil field.

News ID 245133

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