World Bank (WB) experts believe that US, EU, China, India and Turkey will benefit most of all from resumption of trade with Iran.
A WB forecast reads that as soon as sanctions imposed on Iran are lifted, inflow of oil to the world market will increase by about 1 million barrels a day. According to WB experts’ estimates, return of the Iranian oil to the market will lead to reduction of average price by about $10.00 during 2016 (from $66.00 to $56.00) and will also negatively affect incomes of budgets of the biggest oil exporting countries.
In particular, reduction of Saudi Arabia’s incomes from oil export is estimated by WB experts at $40 billion a year and the similar losses of Libya – at $5 billion. According to WB, Iran will increase its incomes, because it will benefit more from increase in the oil export, than lose from reduction of oil prices.
WB experts also expect that as soon sanctions against Iran are lifted, the flow of direct foreign investments into the country’s economy could be significantly increased. In 2016-2017 they could total $3-3.2 billion, which is twice as much against the current level. The Iranian authorities evaluate demands of the oil and gas market till 2020 at $130-145 billion.—0—
Economics
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BP, the operator of the Shah Deniz gas condensate field, announced on Sunday that production from the Shah Deniz Alpha platform resumed on the evening of January 18. This followed the complete resolution of a technical issue with the subsea condensate export pipeline between the Shah Deniz Alpha platform and the Sangachal terminal.
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SOCAR President Rovshan Najaf met with the Minister of State for Petroleum of Pakistan, Musadik Malik, on January 18. According to SOCAR, the discussions covered joint energy projects, achieved outcomes, and cooperation opportunities in various areas, including the trade of petroleum products.
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The State Statistics Committee of Azerbaijan reported that in 2024 investments in fixed assets reached 21,435.1 million manats, which is 0.7% less than in 2023. While overall figures edged lower, the sectoral breakdown reveals notable disparities between the oil and gas sphere and non-oil industries.
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Azerbaijan’s industrial enterprises and individual entrepreneurs reported a modest 1.1% year-on-year increase in industrial production during 2024, reaching an output valued at 64.1 billion manat. The State Statistics Committee attributed the overall growth to a 0.5% expansion in the oil and gas sector, while non-oil and gas industries surged by 7.3%.
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