Iran could attract US pension funds for oil industry investment

The spokesperson for Iran's Oil Products Exporters Union has suggested that Iran could attract capital from US pension funds into its oil industry, Bourse Press reported on April 21.

Hamid Hosseini, discussing the impact of sanctions relief and positive negotiation results on the economy, especially the oil industry, said: "The Ministry of Oil plans to introduce more than $240bn in projects in the form of 206 investment opportunities, including 83 oil and gas fields, to investors. These projects are ready to attract capital and conclude contracts."

"The United States is currently one of Iran's serious competitors in petrochemicals, oil exports, condensates, liquefied gas, LNG, and methanol," Hosseini told ILNA.

"China, as one of Iran's target markets, aims to diversify its energy supply sources from various countries including Iran, Saudi Arabia, Brazil, Venezuela, Russia, Iraq, the United States, and Africa."

However, due to an 84% tariff imposed on US oil and gas, American exports to China face significant costs, with buyers having to pay $51 in customs duties per barrel of oil, according to Hosseini. This has led Chinese buyers to resell some US oil shipments in other markets, with a similar situation likely to develop for India.

"Therefore, the lifting of sanctions could be an opportunity for Iran to quickly return to these markets," he added.

Hosseini noted that Iran has always maintained traditional partnerships with Europe, with refineries in countries like Turkey dependent on Iranian oil. India, South Korea, China, and Japan are also among permanent customers interested in continuing to purchase oil from Iran.

"American companies also have an interest in cooperating with Iran. For example, CONOCO was the first American company to sign a contract with Iran," he stated, adding that before the revolution, a significant portion of Iran's oil was controlled by American companies.

US pension funds, which are among the powerful financial resources of the American financial and banking system, could enter investment negotiations in Iran, according to Hosseini. "A significant portion of US foreign investments, including in China, was made by these funds."