Big oil watches Iran vote, but investment distant

DUBAI (Reuters) – Iran’s presidential election on June 12 may mark a small step toward the return of big oil’s cash to the country’s energy sector, but it could be years before investment flows freely.

Iran sits on the world’s second-largest oil and gas reserves, a mouth-watering prospect for international firms starved of access to Middle East fields. But Tehran has not signed a major deal with a large western oil company for years as political pressure over its nuclear program kept them out.

“If you are an energy company, Iran is too big to ignore,” energy consultant Mehdi Varzi said. “You want to get involved. But if your government says no, you simply can’t.”

U.S. President Barack Obama has said he wants a new relationship with Iran, raising the prospect that U.S. oil firms long banned from working in the country may make a comeback.

Reuters