Questions linger over Iran’s buyback changes

Author: Danielle Myles | Published: 4 Aug 2015

The Iranian government is revamping its oil and gas (O&G) concessions to lure foreign developers ahead of the anticipated lifting of sanctions next year.

Some query if the changes are enough to attract sufficient foreign debt and equity to see the Middle East’s second largest economy fully capitalise on its gas and crude oil reserves – the world’s second and fourth largest, respectively.

The buyback is one of the few examples of foreign investment reform pursued in the context of the joint comprehensive plan of action (JCPOA); which removes almost all EU and US financial sanctions against the country in exchange for Iran significantly curbing its nuclear programme.

For Tehran, one of the major benefits to flow from the JCPOA would be its ability to sell significantly more oil abroad. Before the first sanctions were put in place in 1979, Iran exported 6.66 million barrels a day; according...