Uplifting of sanctions, increasing foreign investments, and the growing oil & gas sector will propel the demand for oilfield services market in Iran to grow at a compounded annual growth rate (CAGR) of 13 per cent until 2021, a report said.

As of 2015, Iran had the highest success rate of natural gas exploration i.e. 79 per cent in comparison with the global average of nearly 30 per cent to 35 per cent, explained the new report entitled "Iran Oilfield Services Market By Application, By Type, Competition Forecast and Opportunities, 2011-2021'' from TechSci Research, a global management consulting firm.

Further, uplifting of sanctions and establishment of new cost-effective transit routes is anticipated to revive oil & gas production in the country. Few of the leading companies offering oilfield services in Iran are National Iranian Drilling Company, Well Services of Iran (Schlumberger Methods), Mehran Engineering & Well Services and Petro Danial Kish Company, the report said.

Lifting up of the sanctions, along with decline in crude oil prices is a major reason pushing growth in oil & gas E&P activities in Iran. In addition, cheaper oil & gas exploration cost in Iran make it a profitable venture for US based international crude oil companies to explore oil in Iran, as the cost to produce a barrel of crude oil in Iran is around $12.90 as compared to around $36.90 in the US.

However, in the face of challenges such as geo-political issues, terrorism and chances of imposition of sanctions again, conservative international companies would restrain from investing in Iran.

"With the uplifting of sanctions in the mid of January 2016, Iran is undergoing a major positive transformation, which is leading to developmental activities being undertaken in oil & gas sector,” said ," said Laltu Sinha, manager Research with TechSci Research.

“Advent of foreign players along with adoption of foreign technology has resulted in better investment opportunities. With increasing number of nations investing in E&P activities, the country's oilfield services market is anticipated to grow during 2016-2021. Moreover, release of frozen capital from other nations will lead to rise and development of the economy of Iran; thereby, fuelling growth in market for oilfield services in Iran,” he added. – TradeArabia News Service