17 January 2017 - 13:53
News Code 82390602
0 Persons
Significance of oil industry in post-sanctions era

Tehran, Jan 17, IRNA - The implementation of the nuclear deal between Iran and world powers in January 2016 prepared the ground for the national economy to revive.

The English language newspaper, Iran Daily, in its Tuesday edition in an article written by Alireza Soltani wrote that the agreement known as the Joint Comprehensive Plan of Action (JCPOA) came to the rescue of Iran’s economy which was on the verge of collapse.

The oil industry has played a significant role in restoring trust and stability to the national economy, and overcoming obstacles which hampered foreign trade under sanctions.

Official data indicate that the country’s economy will have grown by 6.5 percent in the year to March 2017, around two percent of which directly pertains to the oil sector.

The oil industry has also indirectly impacted the national economic growth.
This is because it has paved the way for resuming trust to other economic sectors.

Hence, the oil industry should be regarded as the propulsion of the national economy’s locomotive in the post-sanctions era.

Iranian officials have said that the implementation of the nuclear deal has ended the mission of the foreign policy apparatus and initiated the mission of the oil industry. This shows the key role of the industry in the post-JCPOA era which could be taken into consideration from two angles.

First, the government of President Hassan Rouhani managed to boost oil production and bring the output to the pre-sanctions era. This was achieved while the oil sector had been targeted by tough sanctions and investment in the energy projects had drastically dropped.

Secondly, the Rouhani administration has signed contracts with international oil firms, which is a major step in regaining the trust of big foreign companies in our economy.

Despite the lifting of sanctions, some big companies are concerned about resuming ties with Iran. This hurdle cannot be overcome unless we can restore confidence.

Undoubtedly, signing oil contracts with major companies will pave the way for encouraging other firms to establish ties with Iran and make investments.

Besides, colossal amounts of money are circulated in oil and gas deals which stimulate foreign banks to resume or promote ties with Iran.

As a result, clinching big oil deals with international companies is of great importance for the national economy whose achievements are not restricted to the industrial and economic sectors.

The agreements with France’s Total and Royal Dutch Shell are in line with such strategic policies.

Presently, public support can help the oil industry press ahead with it plans aimed at boosting cooperation with the global economy, which contributes to national prosperity.