Standard Post with Image

Iran Nuclear Deal: Ocean of Opportunity for Indian O&G Segment

News

Iran’s landmark nuclear agreement with the US and five other world powers could keep global oil prices low for a longer period, bringing extended relief to consumers as well companies that use oil and its derivatives as raw material.

Source:  Livemint

SNP Insights

Historic Iran nuclear deal is a blessing for Oil importer countries like India, as it will reduce import bill significantly with reduced oil prices . Hence govt. subsidy burden can come down in the tune of $3 Bn to $5 Bn by end of 2016. After removal of sanction, OVL  can resume its exploration project from Farzbad-B gas field. With revocation of sanction, foreign investment in Iran is most likely to surge high, which Indian upstream companies should capitalize at the earliest. With sea of opportunity lying ahead for Indian O&G sector, how India is exploring & utilizing them for the best interest of whole value chain partner, remains  to be witnessed.

Source: SNP Infra Research