BP to Open Iran Office in Summer, Iranian Oil Firm Says -- Update

By Miriam Malek and Sarah Kent 

LONDON -- British oil giant BP will open an office in Iran this summer, according to Rokneddin Javadi, chairman of the National Iranian Oil Company.

Quoted on the state-owned oil news service Shana, Mr. Javadi said BP is looking to transfer technology and capital to Iran. BP declined to comment.

The Islamic Republic once enjoyed major investments from a bevy of the world's largest energy companies, but Western sanctions over its nuclear program forced the major oil companies out. Though many have shown interest in returning, uncertainty over the terms of working in the country and the legal restrictions still related to sanctions remain a major stumbling block.

BP's CEO Bob Dudley previously has been cautious on investing in the country. Speaking earlier this year, he said his company would choose opportunities carefully.

Other Western oil companies that have made moves to return to Iran include Austria's OMV and France's Total SA. OMV earlier this week announced that it signed a memorandum of understanding with the National Iranian Oil Company, giving it the opportunity to pursue a number of potential oil and gas projects in the country.

BP's history in Iran is complicated. The company was expelled from Iran in the 1950s when it was operating under the name Anglo-Persian Oil Company and Iran decided to nationalize its oil and gas industry. After the company ceased its production activities, BP held a trading relationship with Iran during the presanctions era.

Write to Miriam Malek at [e-mail] and Sarah Kent at [e-mail]

(END) Dow Jones Newswires

May 05, 2016 13:44 ET (17:44 GMT)

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