Article
Source: Energy Voice
Article
09.22.16
As Iran’s natural resources markets newly open to foreign participation, international oil, gas, and mining companies are considering whether and how to participate. In particular, those in the exploration and production services sectors, especially those experienced in applying advanced technologies to extracting natural resources, are eager to find their way into this new market.
However, non-U.S. companies must be cautious, as U.S. sanctions may still apply to operations, especially the use of exploration equipment containing U.S.-origin components.
The Joint Comprehensive Plan of Action that went into force in January 2016 ended much of the international sanctions against Iran for non-U.S. companies. In particular, non-U.S. companies can now begin participating in the natural resources sector as long these companies do not engage in business with a limited number of Iranian entities specifically sanctioned by the UN, EU, U.S. or others. Engaging with such listed entities still can carry legal and/or financial repercussions. However, careful due diligence can be applied to manage this risk.
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