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Iran to supply EU with oil if sanctions lifted

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ATHENS– If Western sanctions against Tehran are lifted, Iran could once again become a major oil exporter to Europe, Mahmood Khaghani, a petroleum development strategy advisor and a member of Iranian Association for Energy Economics, told New Europe on March 11.

In an interview on the sidelines of the Athens Energy Forum 2015, Khaghani reminded that Europe, including debt-ridden Greece, is facing many economic problems. Europe needs a reliable supplier of energy and Iran needs a reliable demand for its energy exports, he said, adding that Europe and Tehran are traditionally good business partners and Iran is the golden gate between Central Asia and the Persian Gulf.

Khaghani also said if sanctions were lifted Iran’s South Pars mega field could supply the EU Southern Gas Corridor. “Iranian gas could make that Southern Corridor more stable, more profitable and more attractive,” he said.

Matt Bryza, former US deputy assistant secretary of state for Europe and Eurasia and former ambassador to Azerbaijan, told New Europe on the sidelines of the same forum in Athens that if there is an agreement reached and ratified by the US and Iran and sanctions are lifted and if Tehran decides under the current government that it wishes to negotiate more commercially attractive terms, then it’s totally feasible that Iran could supply the Southern Corridor with gas. He noted, however, that even though Iran has the necessary gas production volumes, at the moment there isn’t a sufficient import capacity into Turkey.

Regarding sanctions, Khaghani argued that Europe and the US administration have realised they cannot afford to continue the same foreign policy towards Tehran and said he is optimistic that a solution will be found. But Khaghani criticised Republican senators for their recent letter warning Iran against a nuclear deal with US President Barack Obama. “It is perhaps [Israeli Prime Minister Benjamin] Netanyahu and his supporters who are not letting US interests to be fulfilled in establishing a reliable outcome of these negotiations,” Khaghani claimed.

Bryza said nobody knows if there is going to be an agreement on the Iranian nuclear issue. “There is such legal opaqueness because this is a hugely important agreement and so President Obama wants to say it’s not a treaty and therefore it doesn’t need the approval of the US Senate. So the US Senate is saying: ‘We think it’s a treaty and we should be able vote on it. But you’re saying we’re not gonna get to vote on this. Okay, then we’re gonna send this letter to the Iranian leaders and tell them if it’s not a treaty, then the next president can overturn it.’ And if he’s Republican, they’re saying he’s going to overturn it,” Bryza said.

Meanwhile, Khaghani also said Iran could help in the US fight against ISIS terrorists. “They are a bunch of people who’re illiterate; they don’t understand Islam or abuse the name of Islam,” he said. “We’re helping Iraqi people to regain areas; Tikrit, for example. Some areas have been regained from ISIS and also in Syria. We, Iranian people, are very happy to see this terrorist group is defeated,” Khaghani said.

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Previously on Energy Insider:

The Lazarus Pipeline: Borisov hopes to bring Nabucco back to life

Greece wants to be EU link to Eurasia

Putin Willing to Exhume South Stream for EU


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