A general view of the South Pars gas field near the southern Iranian port of Assalouyeh. The EU accord would pave the way for any talks on specific contracts in the future and would come only after the nuclear deal reached in July between Iran and world powers enters into force.
Bloomberg
London/Brussels
The European Union is working on a political agreement that would set the stage for future energy deals in Iran, two people with direct knowledge of the talks said.
The agreement could be signed as soon as November, they said, asking not to be identified because the talks are private. The accord would pave the way for any talks on specific contracts in the future and would come only after the nuclear deal reached in July between Iran and world powers enters into force, the people said.
Europe is seeking new supplies of energy to reduce its dependence on imports from Russia, which provides 27% of the gas consumed in the region. In a policy paper last year, the European Commission, the executive arm of the 28-nation EU, said that countries including Iran could contribute to that goal.
The deal would cover five areas: oil and natural gas contracts, renewables and energy efficiency, power markets, energy infrastructure and investing directly in Iran’s energy industry, the people said.
In Tehran, both the government spokesman Mohammad Bagher Nobakht and the public relations office at the oil ministry weren’t answering phone calls on Thursday, before the weekend started Iran.
In Brussels, the European Commission said in a reply to questions that it “will explore areas of bilateral cooperation including on energy” once the nuclear deal is in effect. For now, it’s focusing on preparatory work for launching a dialogue on energy with Iran “when the conditions are right.”
The EU banned Iranian oil imports in 2012 and imposed extra curbs on the country’s energy industry in a bid to persuade the government in Tehran to allow greater scrutiny of its nuclear programme. Before the sanctions, EU oil imports from Iran accounted for about 6% of the total.
Iran reached a deal last month with the US and five other Western powers that would curb its nuclear program in return for easing sanctions.
The US Congress has until September 17 to vote on the agreement. Fourth-ranking Senate Democrat Patty Murray said last week she will back the accord, bringing President Barack Obama within five Senate votes of the total needed to keep Congress from blocking the agreement.
EU Energy and Climate Commissioner Miguel Arias Canete is planning to meet the European oil and gas industry officials in Brussels this week.
