Oil firms eye Iran energy deals despite sanction threat

As the clock ticks toward possible economic sanctions on Iran, foreign oil companies keen to gain a foothold in the country’s massive hydrocarbon industry are as eager as ever to do business with the Islamic republic.

Attracting foreign investment into the Iranian oil and gas industry appears to be a priority for both the country’s firebrand president and his powerful oil minister. The close ties between Iran and global energy companies suggests U.S. efforts to use sanctions as a way to stop development of the country’s nuclear program may not prove successful. “One has to realize that with Iran, when you look at both the oil and gas reserves, they have a very strong position as a country,” said Jeroen van der Veer, chief executive of Royal Dutch Shell Plc (RDSB.LN), which has a long history of involvement in Iran.

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