Page 8 - MEOG Week 12 2023

MEOG POLICY & SECURITY MEOG

Iran and Saudi look to

continue thaw following deal

IRAN / SAUDI THE Iranian Ministry of Petroleum (MoP) this energy and oil market. He warned against any
week released a statement expressing its willing- interference, including political and legal med-
ness to accept foreign investment in its oil and dling, as it could endanger stability and security
gas projects. This announcement came shortly in the global energy market and fail to eradicate
after a senior official from Saudi Arabia stated energy poverty.
that his country was ready to make “quick invest- Owji stressed that the global energy market
ments” in Iranian development projects. must rid itself of politicisation to achieve stabil-
While the statement did not mention any ity, and political and legal intervention for short-
specific countries or companies, it noted that sighted objectives could prevent pre-planned
investment from members of the OPEC+ alli- investments in oil and energy industries’ devel-
ance would be particularly welcome in Tehran, opment projects, causing instability and inse-
as it would benefit global energy security given curity in the global energy market. Despite the
Iran’s position as one of the world’s leading hold- uncertainties caused by the coronavirus pan-
ers of oil and gas reserves. demic and its impact on the world economy, the
Saudi Arabia is currently the world’s larg- decisions made by OPEC+ member states over
est oil exporter and a leading member of the the past three years have to a great extent guaran-
OPEC+ alliance, which includes OPEC and teed stability and balance of the energy market to
its allies, such as Russia. Meanwhile, Iran is the serve both producers and consumers’ interests.
third-largest natural gas producer globally and Iran, being one of the world’s largest holders
continues to be a significant supplier of crude oil of oil and gas reserves, places great significance
to Asian markets, despite US sanctions imposed on new investments in the oil industry and wel-
since 2018. comes any type of investment in its oil and gas
Earlier this month, political authorities sectors, particularly by OPEC+ member states.
from Iran and Saudi Arabia met in Beijing to By doing so, Iran hopes to take a significant
announce the restoration of their diplomatic step towards guaranteeing the world’s energy
relations by reopening embassies that had been security.
closed since 2016. The Iranian and Saudi statements indicate an
The Iranian Minister of Petroleum, Javad apparent thawing of relations between the two
Owji, also released a statement emphasising countries and a willingness to co-operate in the
the importance of stability in the international energy sector.™

P8 www. NEWSBASE .com Week 12 22•March•2023