Page 10 - MEOG Week 16

MEOG PoLiCy MEOG
transactions and enhancements of the trading mechanism.
Yet few details of this inaugural deal, valued at just over half a million dollars, were disclosed, likely betraying lingering jitters over possible US sanctions-related penalties. Moreover, Tehran was not impressed with Instex’s debut, Iranian foreign ministry spokesman, Abbas Mousavi, describing it as a “good omen” but much less than the country anticipated.
“What the Islamic Republic of Iran expects [from now on] is for the Europeans to fulfil the rest of their commitments in various fields [such as]banking,energyandinsurance,”hesaid.
With Washington apparently reluctant to ease its sanctions regime to help Iran cope with the pandemic, the Europeans will be under yet more pressure from Tehran to expedite eco- nomic assistance, particularly now that con- servatives and hardliners dominate the country’s parliament following last month’s elections, in which thousands of their more moderate oppo- nents were disqualified from running.
hard-line camp
The hard-line camp has long been sceptical of the JCPOA and may not be too concerned about
its possible collapse. As such, they will probably not shy away from further non-compliance as leverage for European trade. Yet for as long as secondary sanctions are in place, the prospects of Instex becoming an effective commercial channel are not great, even though it has drawn Russian approval and growing support within Europe—six more countries became sharehold- ers in the project late last year.
The EU, meanwhile, has sought to keep rela- tions with Tehran on an even keel by promising 20 million euros’ worth of humanitarian aid and supporting Tehran’s appeal to the IMF for $5bn ofemergencyfundingtohelpcombatthecoro- navirus upheaval.
Although Washington plans to block the lat- ter over concerns that the funds would be used for other purposes, some suggest that there are nevertheless steps that the IMF could take to address US unease.
The EU’s efforts might temporarily assuage Iranian frustration over the loss of commerce. But it seems that unless the Europeans deter- minedly challenge the US sanctions regime they may have to tolerate further Iranian breaches of the JCPOA that could eventually make the deal unsalvageable.™
PRoJeCts & ComPanies
South Pars experiences ‘no drop’ in output despite virus crisis
iRan
ThE CEO of Iran’s Pars Oil and Gas Company (POGC) has said the coronavirus (COVID-19) crisis has not interrupted gas production at the giant South Pars gas field, ShANA reported on April 16.
The entirety of South Pars in the Persian Gulf, shared by Iran and Qatar, is thought to make up the largest gas field in the world. however, the development of the field in Iranian waters has been hampered by US sanctions imposed on Tehran. In August 2018, sanctions put an end to French energy major Total’s planned participa- tion in South Pars hydrocarbon extraction.
POGC CEO Mohammad Meshkinfam paid a visit to the the Assaluyeh and Kangan gas processing sites, where gas recovered from South Pars is processed. There, he reportedly received briefings on the latest developments in operations.
Meshkinfam was cited as saying that the spread of the coronavirus outbreak had not interrupted activities at the field, while adding that all activities were entirely in accordance with health and safety standards.
Earlier, in March, the last platform required for Phase 13 in developing South Pars was
installed.
The local contractor for the platform project
said the new mega-structure would raise the daily gas production of Phase 13 to 56mn cubic metres.
The platform weighs some 2,500 tonnes and was produced by Iranian firm Marine Industrial Company (SADRA) in Bandar Abbas.
In February, the final platform required for the gas field development’s Phase 14 was installed. Platform 14D was also shipped from the SADRA shipyard.™
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Week 16 22•April•2020