"Iran Business Responsibility" launches website

Business & Human Rights Resource Centre is working with International Campaign for Human Rights in Iran on the "Iran Business Responsibility" (IBR) project.

Visit the project website launched in June 2017, and explore the articles below for insights on the new investments in Iran.

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24 August 2016

Iran closer to rolling out new oil project contracts

Author: Alireza Ramezani, Al-Monitor

TEHRAN, Iran — Dispute remains ongoing over whether parliamentary approval is required for the Iran Petroleum Contract (IPC), a new oil and gas contract model rolled out by the government for upstream projects. Conservative lawmakers want to make further changes to the strategic contract model, arguing that the version approved Aug. 3 by President Hassan Rouhani's Cabinet includes articles that go against Iran's national interest. The IPC is the framework for about 50 upstream oil and gas contracts expected to be signed with foreign investors in coming months

The draft contract, which is aimed at attracting $185 billion in foreign investment in oil and gas production and refining, was first presented to energy investors for feedback last November in Tehran. Since then, the Petroleum Ministry has made 150 changes to it in an attempt to assuage domestic critics. Nevertheless, immediately after the Cabinet’s approval of the IPC, the ultraconservative newspaper Kayhan published an editorial arguing that the amendments only added to the contract’s “disadvantages.” In a separate story published in the same issue, Kayhan implied that both the Joint Comprehensive Plan of Action and the IPC are bad deals that will harm the Iranian economy, thus threatening the national interest.

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29 July 2016

Daelim signs $2 billion MOU to improve Isfahan Oil Refinery Capacity

Author: Huh Sung-soo, Business Korea

"Daelim Signed an MOU with Iranian Oil Company to Improve Refinery Capacity"

The Iranian oil ministry announced on July 19 (local time) through its news agency that Korea-based Daelim Industrial Co. and Iran’s Isfahan Oil Refinery had signed an MOU to improve production and optimize the facilities of the Iranian oil refinery.

According to Iranian local news outlets, the managing director of Lotfali Chavoshi at Isfahan Oil Refinery told reporters on July 18, the previous day, that the implementation of the deal would bring the facility to its golden days and be made in the way of Engineering, Procurement and Construction (EPC) with Daelim responsible for financing. The project will be carried out for four years with an investment of US$2 billion. Daelim will cooperate with Iranian contractors, and the National Iranian Oil Engineering and Construction Company (NIOC) will serve as the operator. 

Once completed, the project will reduce the refinery's crude oil feedstock by 16,000 barrels per day by adopting new production technologies. The facility's oil output will rise by 8.5 million liters per day which will be one of the major achievements of the project.   



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21 July 2016

PSA wins second Iran production deal for Citroen brand

Author: Reuters

PSA Group unveiled a second Iranian manufacturing deal on Thursday as the French carmaker seeks to reclaim the leading position it once enjoyed in the Middle East's biggest auto market, until U.S.-led sanctions forced its withdrawal.

The Paris-based carmaker struck a framework deal with Iranian counterpart SAIPA to invest 300 million euros ($330 million) in the development and production of three Citroen models through a new joint venture.

PSA, which pulled out in 2011 under U.S. pressure, now faces stiffer competition from Chinese rivals that have grabbed more business in the intervening years - as well as western peers such as Renault flocking back with newer models...

Iranian car registrations approached 1.6 million cars at their 2011 peak, with PSA claiming almost 30 percent of the market, before collapsing under the weight of sanctions.

The deal with SAIPA, Citroen's partner since 1966, follows a joint venture deal inked last month between stablemate Peugeot and state-owned Iran Khodro. PSA's smaller DS premium badge has also clinched a distribution agreement in the country.


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13 July 2016

Russia’s Zarubezhneft to develop two oil fields in Iran

Author: Tass

"Russia’s Energy Minister Alexander Novak earlier said that Zarubezhneft would take up several projects worth a total of $6 bln in Iran’s oil industry"

The National Iranian Oil Company (NIOC) has signed a basic non-disclosure agreement with Russia’s state-owned energy giant Zarubezhneft over two oil fields in the western Iran, NIOC said in a statement.

Under the agreement, the Russian company will study West Paydar and Aban oil fields and will present its proposals to increase the recovery rate of both fields to the NIOC.

Aban and West Paydar are both among a series of oil fields that Iran shares with Iraq.

In October 2015, Russia’s Energy Minister Alexander Novak said that Zarubezhneft would take up several projects worth a total of $6 bln in Iran’s oil industry.

Established in 1967, Zarubezhneft represents Russian state interests in overseas oil projects. The company has experience of international cooperation in 30 countries.


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29 June 2016

Doosan Heavy Industries & Construction to Build Seawater Desalination Plant in Iran

Author: Jung Min-hee, Business Korea

Doosan Heavy Industries & Construction announced on June 27 that it signed a seawater desalination plant construction project with Sazeh Sazan, an Iranian company. The value of the contract is 220 billion won and the plant is to use reverse osmosis technology.

This contract marks the first one of its kind signed by a non-Iranian company in the Iranian seawater desalination market after the lifting of the economic sanctions on Iran. According to it, Doosan Heavy Industries & Construction is to carry out repair and maintenance as well as design and equipment supply. The construction process is scheduled to be completed in October 2018 and the South Korean company is to be in charge of repair and maintenance for 12 years starting from the date of completion.

The location of the plant is Bandar Abbas, the capital city of the Hormozgan Province in southern Iran. It is going to produce freshwater for use in mines and have a daily output of approximately 200,000 tons, which can be used at the same time by 670,000 persons.

“We have tried to enter the Iranian market by, for example, signing an MOU with Iran’s National Water and Wastewater Engineering Company in April this year,” said Yoon Seok-won, head of the Water BG of Doosan, adding, “This SAKO Project signed at this time based on the recent summit talks between South Korean President Park Geun-hye and Iranian President Hassan Rouhani will be the starting point to increase our presence in the Iranian water market, which is estimated to grow to reach US$2 billion in 2018.”


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22 June 2016

Daewoo E&C Signs MOU for Billion Dollars Worth Projects with Iran

Author: Huh Sung-soo, Business Korea

In May this year, President Park Geun-Hye made a state visit to Iran to meet President Hassan Rouhani. Daewoo E&C accompanied the visit as a member of the economic mission, and signed two Memorandums of Understanding for constructions of road and refinery facilities worth a total of US$1.5 billion. Daewoo E&C and Hyundai Engineering & Construction signed a US$10 billion worth joint business agreement with Bahman Geno Refinery Company to construct refinery facilities. Moreover, the construction of Tehran-Shomal freeway Lot No. 3, which will be conducted by Daewoo E&C alone, is estimated to be worth US$1.5 billion. Amid the continuously shrinking construction of petrochemical plants due to the prolonged low oil price, new construction orders from Iran might be an opportunity for domestic builders to break through the recession. In addition to the plant construction, various infrastructure construction projects for power generations, bridges, roads and railways are expected to come out in Iran.

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21 June 2016

German Company Planet in Green To Set Up Solar Power Plant In Iran

Author: Clean Techies

"German Company To Set Up 100 MW Solar Power Plant In Iran"

Over the last few months several international companies have expressed plans to implement renewable energy project. Now, a German company is expected to become probably among the first international companies to set up renewable energy project in the Middle Eastern country.

German company Planet in Green announced that is has been chosen by the Iranian government to set up 100 MW solar power project. The company has signed 20 year power purchase agreement with the Iranian renewable energy organisation...

Planet in Green also reported that it plans to set up additional solar power projects but with much lower installed capacity of around 10-20 MW...

This deal is a part of Iranian’s government goal to install 5 GW of renewable capacity by 2020.

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8 June 2016

Korean shipyards sign $2.4 billion Iranian deals

Author: Lee Jin-a, Korea Times

Korean shipyards have reached preliminary deals with Iranian shipping and oil companies for orders estimated at $2.4 billion, the Wall Street Journal said Tuesday.

Hyundai Mipo Dockyard, a subsidiary of Hyundai Heavy Industries, signed a memorandum of understanding (MOU) with Islamic Republic of Iran Shipping Lines (IRISL) for up to 10 petroleum-product tankers and six bulk carriers, sources said.

The tankers cost about $30 million each, while the bulk carriers are about $20 million apiece, a source said.

Hyundai Heavy is competing with China's Dalian Shipbuilding Industry to sign a deal for six 14,500-container ships with IRISL.

Daewoo Shipbuilding and Marine Engineering (DSME), another major Korean shipbuilder, is negotiating with Iranian Offshore Oil Company (IOOC) for orders for at least five jack-up rigs worth about $205 million each.

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6 June 2016

Iran sees rapid increase in foreign direct investment

Author: Cara Lyttle, FDI Intelligence

"Iran FDI soars", 19 May 2016

Greenfield investment monitor fDi Markets has observed a steady increase in global investment into Iran between January 2013 and March 2016. During 2013 the country attracted three FDI projects, a figure that increased to eight during 2014 and again to nine during 2015. During 2016’s first quarter Iran has won 22 FDI projects, the highest rate of investments per quarter since fDi markets began recording data in 2003...

International sanctions on Iran which were lifted in January 2016 have reopened the country’s economy to a stream of investments across a range of industries including financial services, consumer electronics and renewable energy. The primary investing countries in Iran during this period were South Korea and Germany, which together have a capital expenditure of $2.15bn. The upward trend recorded by fDi markets indicates that the economic rebound Iran is experiencing is set to continue, with several companies signalling their interest in future investments in the country...

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6 June 2016

Turkey's Unit International says agrees $4.2 billion deal to build Iran power plants

Author: Reuters

Turkish energy company Unit International has reached a $4.2 billion deal with Iran's energy ministry to build seven natural gas power plants there, in what it said was the biggest investment in Iran since the lifting of sanctions.

The power stations, to be built in seven separate regions of Iran, Turkey's eastern neighbor, would have a combined installed capacity of 6,020 megawatts, the company said in a statement...

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