What barriers foreign companies are facing to invest in Iran Petroleum Industry?

Iran’s combined oil and gas reserves are probably the highest in the world and are matched only by Russia and Saudi Arabia. Against its enviable potentials, which could easily make Iran a regional superpower in a relatively short time, there exist a number of major barriers that have to be addressed if Iran would like to benefit from these advantages.

The main one is the stability of rules and regulations especially in the field of insurance, tax and customs, because investors need to be sure that these rules and regulations will not change in the next 5 years.

Iran believes that technology transfer should be a prerequisite for partnership. Technology transfer can be in the management and technical segments, but this approach leads to the country’s success in the long term.
In order to entice foreign companies to invest in Iran, there should be some short term incentives.

One of the incentives is the new oil contract which guarantees the long term benefit for foreign companies. .

There other factors which prevents the foreign investment, one of them is political stability and the investors must be ensured that the rules and regulations will not change in the next 5 years at least. The other factor is the contracts and negotiations.

In addition to the mentioned barriers, some other factors such as no membership in any international investment community, inactivity of foreign banks and insurance institutes, and inability to repay external debts can preventing from Investing.

If the above-mentioned challenges are swiftly resolved, there will be a huge investment in the Iranian oil and gas industry, which would lead to a major positive impact on the Iranian economy and the standard of living in Iran.