Tehran, (Business News Report)|| Foreign investors in Iran’s energy sector are declining due to international sanctions that are chasing Tehran because of its nuclear program, which has eroded the Iranian economy.
Iranian Oil Minister Javad Oji said that foreign investment in Iran’s energy sector is declining.
Oji stressed that the absence of foreign investment is forcing his country to import gas.
He explained that “the country needs $80 billion to supply the country with the gas it needs in the future.”
“After the US sanctions due to the withdrawal from the nuclear agreement in 2018, all foreign investments in the field of energy in Iran were absent,” Oji added during the signing of the memorandum of understanding between the ministry and the Tehran municipality.
He indicated that “there is a need for $80 billion over the next eight years to supply the country with gas,” warning at the same time of a shortage of electricity and gas this summer, citing production and shortages last year.
In recent years, Iran has been unable to attract foreign investment in energy projects due to sanctions and the country’s political and economic insecurity.
In another part of his speech, referring to the cheap prices of gas and gasoline for consumers, the Iranian oil minister said that the government pays $80 billion in fuel subsidies annually.
Iran has one of the world’s largest oil and gas reserves, but a lack of investment to improve oil and gas facilities has resulted in the country facing energy shortages in some months of the year.
Oji noted that US sanctions against Iran not only reduced oil and gas exports and prevented the sale of some of its resources, but also led to a sharp drop in investment in primary industries.
He added, “According to expectations, $80 billion should be invested in the coming years to achieve the goal of producing 1.4 billion cubic meters of gas per day, otherwise Iran will have to import gas if there is not enough investment.”
Oji added, the need to invest in primary industries is becoming more apparent, and if that does not happen, production in the oil and gas industry will be in trouble.