The contracts were signed in the Austrian capital of Vienna by an Iranian banking delegation which included representatives of 14 domestic banks headed by Mohammad Khazaei, the president of the Organization for Investment Economic and Technical Assistance of Iran. Deputy Head of the Central Bank of Iran (CBI) for Foreign Exchange Affairs Ahmad Araqchi was also a member of the delegation.

The first major finance deal worth €1 billion was signed on Thursday between Austria’s Oberbank and a dozen Iranian banks. The Austrian bank thus became one of the first European financial institutions to break the ice in providing loans for Iranian projects following the removal of Western sanctions in early 2016.

Oberbank, Austria’s seventh-biggest bank, with a balance sheet of roughly €20 billion ($24 billion), signed the deal with 14 Iranian banks at its headquarters in Linz.

President of the Organization for Investment, Economic and Technical Assistance of Iran Mohammad Khazaei (2nd L) and Oberbank’s Chief Executive Franz Gasselsberger (2nd R) attend a press conference following the signing of a major finance deal between 14 Iranian banks and the Austrian bank in Vienna on September 21, 2017.

The move was groundbreaking particularly given that many banks — mainly those from Europe — are still standing away from Iran’s funding prospects over fears that they may fall afoul of remaining US sanctions against the Islamic Republic.

Officials in Tehran are hoping that this would set the stage for similar moves by other European banks in the near future.

The Iranian signatories included veteran private banks such as Parsian Bank, Saman Bank, Eqtesad Novin Bank, Bank Parargad, Karafarin Bank and the newly established Middle East Bank. Others were former state banks that were privatized over the past few years such as Bank Melli Iran, Bank Mellat, Bank Sepah, Tejarat Bank, Bank of Industry and Mine, Export Development Bank of Iran, Refah Bank and Keshavarzi Bank.

The agreement which envisages a funding ceiling of €1 billion covers projects by Austrian companies in Iran’s production and development projects lasting more than two years.

Speaking on the sidelines of the signing ceremony, Oberbank’s Chief Executive Franz Gasselsberger said, “Today was a great day in the two countries’ relations as this was the first finance deal between a European bank and the Islamic Republic of Iran. Although the negotiations on the deal took long for several months, the outcome was quite favorable and satisfying for both sides.”

He added the contract will prepare the ground for Austrian companies and industries in different sectors, particularly health and infrastructure, to invest in Iranian projects and export products and modern technologies to the Middle Eastern state.

“In case on some day in the future, we look back at this day, we will realize that this contract has served as a turning point for the two sides to deepen their relations.”

Gasselsberger said Iran’s economy, in addition to those in Austria and other European countries, is extremely attractive for the entire world as the Middle Eastern state has a hardworking and smart young generation that can create great opportunities for their own country and other nations.

“There must be a win-win situation for Iran and international companies. Nevertheless, we should not forget about political aspects.”

Earlier in September, Gasselsberger told Reuters that the agreement covered projects by Austrian companies in areas that were previously under sanctions.

“We have very concrete projects in the fields of infrastructure, rail, health, hospital construction, factory building, photovoltaics, hydro power,” he had stressed.

Export credit guarantees covering 99 percent of a project’s volume will be provided by the Oesterreichische Kontrollbank, the main Austrian body that issues them, Reuters added.

“The sticking point was obtaining an additional guarantee from the Iran,” Gasselsberger said. “We negotiated with the Iranian central bank but the guarantee is evidently coming from the Iranian Finance Ministry.”

President of the Organization for Investment, Economic and Technical Assistance of Iran Mohammad Khazaei (C) at the signing ceremony of a finance deal worth €500 million with representatives (R) of Denmark’s Danske Bank in Vienna on September 21, 2017.

Deal with Denmark’s Danske

The other finance contract, very similar to the one with the Austrian bank, was also signed on Thursday, between the Iranian team and Denmark’s Danske Bank.

The deal is worth €500 million and sees 10 Iranian banks on the receiving end. Following the contract the Danish bank became the second European lender to ink such an agreement with Iran.

The Iranian signatories to the agreement were Saman Bank, Bank Mellat, Tejarat Bank, Bank Melli Iran, Bank of Industry and Mine, Bank Sepah, Bank Pasargad, Eqtesad Novin Bank, Keshavarzi Bank, and Parsian Bank.

They will act as the agent banks, providing civil projects in Iran with the Danish fund, according to an announcement by the website of the Central Bank of Iran.

Danske Bank, founded in 1871 and headquartered in Copenhagen, is the largest bank in Denmark and a major retail bank in the northern European region with over five million retail customers. It was number 454 on the Fortune Global 500 list for 2011.

MoU on infrastructural projects

In addition, the Iranian delegation also signed an MoU late on Thursday with the EKF Bank of Denmark to finance infrastructural projects in Iran.

The memo will make it possible to finance Iranian projects in various sectors later.

The deals with Oberbank and Danske came on the heels of a similar move between China’s CITIC Group and a consortium of Iranian banks to provide loans worth a collective of $10 billion for the country’s infrastructure projects.

Iran had also in late August secured an €8-billion credit line from South Korea’s Eximbank — what was seen as the country’s biggest loan deal since the removal of sanctions against it in early 2016.

Accordingly, officials in Seoul said the deal would finance projects in Iran by companies from South Korea.

The post Iran signs deals with Danish, Austrian banks appeared first on IRAN This Way.

“Parallel talks have started with other multinationals to undertake the megaproject,” said Karim Zobeidi, the head of a special department at NIOC that oversees the performance of reservoirs, ISNA reported.

Pointing to the $7.45 billion deal between the French energy major Total and the Copenhagen-based giant that was concluded last month, Zobeidi said, “Because Total has purchased Maersk’s oil and gas business, we should follow the talks more prudently.”

According to the official, the French giant is carrying out operations on Qatar’s oil layer in the joint oilfield with Iran in the Persian Gulf that is why NIOC ought to conduct negotiations with tact so as to not lose ground to the Arab state.

A POGC official has reported on the signing of a contract with a French firm for conducting pressure drop studies in South Pars joint gas field.

Maersk has already drilled more than 300 wells and extracted more than 1 billion barrels of oil for Qatar from the Qatari section of South Pars, which is known as the North Dome. According to reports, French energy major Total S.A. took over drilling and production operations in the North Dome from Maersk last year.

Highlighting the importance of collaboration with foreign firms to develop the second and third development phases of the field’s oil layer, the official noted that the layer’s complicated geological structure necessitates qualified companies to implement enhanced oil recovery techniques from the beginning of their operation.

“Pars Oil and Gas Company, as the contractor of South Pars oil layer, has held talks with a number of international companies, yet no agreement has been signed,” Zobeidi said, adding that Schlumberger Ltd, the world’s leading oilfield services provider, was also reportedly interested in drilling the South Pars oil layer, but it failed to reach agreement with NIOC.

According to Roham Qasemi, managing director of Petroiran Development Company, cumulative crude oil output from the field’s oil layer has surpassed 2.5 million barrels over roughly six months.

Iran began to extract crude oil from South Pars in March using FPSO Cyrus, a floating production storage and offloading vessel in March. The FPSO was reportedly built in Singapore and cost $300 million.

“Maersk’s operational capacity and know-how to drill horizontal oil wells as deep as 10,000 meters are key to its success in developing the South Pars oil layer, as we are still deprived of such expertise,” Qasemi said.

Underscoring the country’s domestic capacity to develop the project’s first phase, he added that Iranian experts drilled 39,000 meters of offshore well in addition to installing a 2,500-ton platform.

Asked about employing another FPSO in the second phase, Qasemi noted that Petroiran, POGC and the Danish conglomerate are holding technical talks about the issue.

Iran aims to stabilize production from the SP layer at 25,000 barrels per day and gradually boost output to 55,000-60,000 bpd.

NIOC plans to employ enhanced oil recovery methods to boost the extraction rate in fields by 35%. South Pars oil layer is located 130 kilometers off Iran’s coast in the Persian Gulf with an estimated 7 billion barrels of oil in place, but it is hard to put an accurate estimate on the volume unless more exploratory wells are drilled.

The post Maersk talking for develop Iran’s South Pars appeared first on IRAN This Way.

Deputy Minister of Roads and Urban Development for International Affairs Asghar Fakhrieh Kashan was quoted by Press TV as saying that nine financial institutions from Norway, Denmark, Ireland, Britain, China and Japan had already approached Iran to fund the purchases.

He did not disclose the names of the interested financers.

Nevertheless, he underlined that arrangements to hold a tender to choose the financier for the purchases were underway, adding that tender documents would be sent out to potential bidders within a month.

Last week, he was quoted by THE media as saying that Britain’s key export credit agency — UK Export Finance (UKEF) — had informed Iran’s Ministry of Roads and Urban Development that it was ready to provide funding for all of Iran’s purchases from Boeing and Airbus.

He stressed that Iran wanted to have an open hand in choosing the best financiers and that a tender to this effect would be held soon.

“Iran Air is preparing the tender documents so that they would be sent to all credible financiers worldwide,” Fakhrieh Kashan told IRNA.

“We are in conditions that permit us to choose our desired financiers in a competitive atmosphere that a tender creates.”

Also, Iran’s media last October quoted an unidentified government official as saying that Boeing had sealed a deal with an American bank to provide financing for Iran’s purchase of airliners in cooperation with a Japanese bank.

The post European and Asian financiers ready to fund Iran aviation appeared first on IRAN This Way.

Bijan Zangaeh, while pointing to continuation of talks with Maersk Group, voiced optimism that final agreements will be reached in near future.

“What’s more, Pars Oil and Gas Company Ltd. has been chosen as the contractor of the project,” he continued.

In the same line, Deputy Head of NIOC for Development and Engineering Affairs Gholamreza Manouchehri recounted on results of negotiations asserting “for the moment, talks will continue with Denmark’s Maersk until a contract is signed in near future.”

Manouchehri’s remarks come at a time when he has asked Petroiran Development Company to seek consultations from Maersk Group. Such an emphasis seems to be rooted in the fact that the Danish firm is in charge of developing South Pars Oil Layer project.

Complementing oil minister’s statements on the change in the project’s contractor, the NIOC official said “the primary contractor of the project was Pars Oil and Gas Company though the responsibility was later shifted to the Iranian Offshore Oil Company (IOOC) before returning to the former again based on recent decisions.”

“SPOL was supposed to yield 35,000 oil barrels per day on a regular basis though the output figure currently stands at 25 thousand barrels and will hopefully reach the envisaged level by the end of current year,” stressed the official.

Until a year ago, Maersk Group was in charge of development and production in the Qatari side of South Pars Oil Layer and it had managed to recover one billion barrels. Nevertheless, Total’s proposal to Qatar over the layer led the Danish firm out of the oil-rich region and marked an end to its partnership with Qataris.

Afterwards, Maersk launched more serious talks with National Iranian Oil Company (NIOC) though no final deal has been sealed yet. Several decades ago, the Danish business conglomerate held sessions with the Iranian Ministry of Petroleum though its proposals were rejected and Petroiran Development Company was put in charge of the developmental project.

Several marginal issues in the drilling project and failure of Schlumberger drilling program brought about a series of unwanted events until the first Floating Production, Storage and Offloading (FPSO) unit was purchased.

Return of Maersk Group to Iran is reminiscent of the remarks made by International Petroleum Consultant and the then Director of Maersk for legal affairs and contract Pasha Ramazanpour who said “despite willingness of the Danish firm to develop the oil layer, the project has been assigned to a newly-formed Iranian company.”

A.P. Moller–Maersk Group, also known as Maersk, is a Danish business conglomerate. A.P. Møller – Maersk Group has activities in a variety of business sectors, primarily within the transport and energy sectors.

The post Iran start talks with Maersk over SPOL appeared first on IRAN This Way.

Gholamali Kamyab said attracting $10 billion of foreign finance has been defined as a project for the CBI in the area of Resistance Economy, Tasnim News Agency reported.

He made the remarks in a meeting with CBI officials, which was attended by First Vice-President Es’haq Jahangiri in Tehran.

The measures taken by the CBI in this regard include extensive talks with some foreign banks, such as the Export–Import (Exim) Bank of China, Italy’s Mediobanca and Denmark’s Danske Bank, he noted.

The CBI vice governor added that up to now, 72 percent of the project has been implemented.

There has been a new wave of interest in ties with Iran since Tehran and the P5+1 group of countries – Russia, China, the US, Britain, France and Germany – reached a deal on Iran’s nuclear program in 2015.

The comprehensive nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA), terminated all nuclear-related sanctions against Iran.

The post Iran take $7.2b finance from Italy, Denmark and China banks appeared first on IRAN This Way.

Mohammad Saeidnejad, Managing Director of Iran’s Ports and Maritime Organization (PMO), made the remarks on Sunday adding “implementation of the Joint Comprehensive Plan of Action (JCPOA) has removed all restrictions on return of giant shipping lines to Iran.”

“Prior to sanction years, a total of 27 international shipping lines were present in Iranian waters though a large number of them halted their activities as a result of severe economic sanctions against Iran,” underlined the official saying “all major lines are arriving back to the country as 17 companies have been loading and unloading goods at Iranian ports without any preconditions.”

Saeidnejad went on to state that Denmark’s Maersk shipping group has voiced its readiness to return to Iran like many other foreign companies, a trade decision in which political issues have no place since large liners are allowed to freely enter the Iranian market at a competitive atmosphere.

“The most significant advantage of the present condition is that, in a competitive market, gainer shipping lines feel the need to promote satisfaction of customers, who are indeed owners of Iranian goods,” said the official.

Saeidnejad further reiterated that a competitive market will bring about an uplift in quality while, at the same time, it will reduce prices and costs for the county; “all in all, the new market will lead to improved business conditions inside the country.”

The Maersk Group of Denmark is an integrated transport & logistics company with multiple brands and is a global leader in container shipping and ports.

The post No barriers exist on return of int. shipping lines to Iran appeared first on IRAN This Way.

Turaj Amiri further said that given the expected 28 percent rise in operations in the year to mid-March 2017, the port will handle over 2.1 million containers during the period, IRNA reported.

Pointing to the loading and unloading of three million containers per a year during the years before the Western sanctions, the official said the figure dropped to 1.6 million last year.

He put the annual operation capacity for the first phase of Shahid Rajaei’s First Terminal at 1.5 million containers adding that once the second phase of the terminal’s development project becomes operational, the figure will rise to 3.5 million containers.

Pointing to the capacity of the Second Terminal of Shahid Rajaei Port, he said that with the completion of the third phase of development plan, the annual operations capacity for the port will grow to 8 million containers.

“Step by step the problems have been resolved (since then), removing many restrictions and limitations,” Mohammad Saeidi, the chairman of Islamic Republic of Iran Shipping Lines (IRISL) told Reuters in an interview at the Danish Maritime Forum conference in Copenhagen on Thursday.

A slowdown in global trade together with a glut of vessels has left the container shipping industry struggling with its worst ever market conditions, but Saeidi said the post-sanctions environment meant IRISL would be looking to expand its 156-ship fleet.

“We are negotiating with some shipyards and some makers and hopefully it would reach clear conclusions in the next 3-4 months,” he said.

The post 17 int’l shipping line companies resumed Iran operations appeared first on IRAN This Way.

On the sidelines of his visit to Copenhagen of Denmark, Energy Minister Hamid Chitchian met with the Danish counterpart discussing numerous topics like Denmark’s favorable climate, development of joint cooperation in the field of renewable energy, improving quality of water resources, wastewater treatment and reuse in various sectors.

The Iranian pointed to his ministry’s commitment to environmental considerations in all projects as well as voluntary partnership in agreements reached at 2015 Paris Climate Change Conference adding “in view of Denmark’s capabilities and Iran’s unique capacities in wind and solar energies, expansion of ties in renewable energies can mark the main axis of future talks between the two sides.”

Chitchian noted that wastewater treatment is now being carried out in most Iranian cities asserting “taking advantage of modern technologies in water and wastewater treatment remains as yet another venue for cooperation between private sectors of the two parties.”

It was also agreed that the Danish Minister for Energy, Utilities and Climate Lars Christian Lilleholt, accompanied by top companies of the European country, make a visit to Tehran to discuss venues for boosting bilateral cooperation in water and electricity areas.

In a separate meeting with Esben Lunde Larsen, Denmark’s Minister for Environment and Food, Iran’s Chitchian referred to the climate change and water scarcity in various parts of Iran saying “over the past 15 years and due to climate change, a disturbing drought has emerged in Iran and, in addition to reduced precipitation, more evaporation takes place as a result of higher temperatures.”

He called for adoption of smart and clever strategies to alleviate side effects of climate change as well as to boost water management and irrigation efficiency in the agriculture sector.

Energy Minister Hamid Chitchian invited Danish firms to launch relevant cooperation with Iranian counterparts.

Making visits to a waste-fueled power plant, Green Living projects as well as Vesrtas and Siemens factories have been put on the agenda of Chitchian’s three-day trip to the European state./MNA

The post Iran called for increased share of Denmark in water projects appeared first on IRAN This Way.