The recent price slump has radically changed the investment
landscape for oil companies. OPEC has signalled that it will not be
cutting production and the prospects for global economic growth are
weak. While it is not the most auspicious time to seek billions of
dollars of investment into oil and gas projects, Iran has no choice
but to do just that. Iran's oil and gas sector has been starved
of capital for years and the country is in desperate need of
revenues in hard currencies.
The search for foreign investment
The closest analogue to Iran's search for foreign investment
can be found in Iraq. The most notable similarity between the two
countries' upstream sectors being the use of a risk-service
type model to govern investments and operations.
