Web Alert: MoUs signed between Iran and South Korea

News & Insights 10 May 2016


With the lifting of the UN and EU sanctions and secondary sanctions against Iran under the Joint Comprehensive Plan of Action (JCPOA) which came into effect on 16 January 2016, Iran has become an attractive place to trade – particularly as its oil can now be sold worldwide.

With the lifting of the UN and EU sanctions and secondary sanctions against Iran under the Joint Comprehensive Plan of Action (JCPOA) which came into effect on 16 January 2016, Iran has become an attractive place to trade – particularly as its oil can now be sold worldwide. Iran has the fourth largest oil reserves in the world and the second-largest natural gas reserves[1].
 
At the beginning of May 2016, South Korea’s Korea Gas Corporation (KOGAS) signed a Memorandum of Understanding (MoU) with the National Iranian Oil Company (NIOC), the National Iranian Gas Company (NIGC) and the National Iranian Gas Export Company (Nigec). The MoUs are based on strengthening partnerships in the oil and gas sector. This joint venture demonstrates the two countries’ wide-ranging strategic cooperation which will see the potential expansion of new gas fields, onshore liquefaction plants and floating (FLNG) terminals in Iran and building of gas pipes.
 
Iran, which aims to attract foreign investment in exploration and production of $185 bn by 2020[2], has also already signed MoUs with various multinational companies associated in the upstream oil sector, even though there is a risk that sanctions could be reimposed in the event that Iran violates or infringes its commitments under the JCPOA.
 
Please note that various circulars and web alerts have been published in relation to the lifting of Iran sanctions which can be easily accessed here.

[1] U.S Energy Information Administration
[2] Clarksons Research, Spring 2016

Categories: Offshore

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