Multiconsult returns to Iran

Multiconsult is back working in Iran, after a long pause caused by the political situation and economic sanctions. Western companies are once again free to operate in the country, including in its large and challenging oil and gas market.

21. July, 2016

As part of its international strategy, Multiconsult entered the Iranian market at the start of the 21st century. It did so by collaborating with big companies in the oil and gas sector with whom it also worked closely in Norway. Multiconsult was awarded contracts through its relationships with Linde, Hydro and Aker Marine.

“Aker Marine gave us responsibility for the detailed design the world’s biggest cooling water distribution plant at that time, at Mobin. The Mobin project took water from one kilometre out in the Persian Gulf and pumped it to a large number of petrochemical companies. On several of its contracts, Multiconsult worked with an Iranian engineering firm called Sazeh Pardazi Iran. In due course Sazeh Pardazi became an important local partner, and Multiconsult hoped to build a long-term relationship with the company. Now we wish to renew that relationship,” says Per Horn, Key Account Manager for Iran.

Renewing oil and gas relationships

As everyone knows, the political situation in Iran became more difficult. After international sanctions were introduced Multiconsult, like other Norwegian firms, stayed out of the Iranian market. The thaw after the nuclear deal reached last winter means that the Iranian market is beginning to reopen for Western companies, and Western governments led by the United States are encouraging normal business dealings with Iran. “We have been monitoring the situation and believe that the time is now ripe to renew our ties with Iran. Initially our focus will be on the Oil and Gas business area. In the longer term there may also be opportunities worth pursuing in other areas, particularly in renewable energy,” says Horn.

MoU with Sazeh Pardazi

Multiconsult recently visited Sazeh Pardazi in Tehran to discuss the possibility of renewing our collaboration.  “After some highly successful meetings we have signed a Memorandum of Understanding (MoU) with them covering opportunities in the oil and gas market. Sazeh Parazi, which is a privately owned, independent company with 400 employees, is highly respected in Iran. It has long-standing relationships with a number of attractive customers, some of whom we met during our visit,” says Horn.

A large and challenging market

Iran has the world’s third largest oil and gas reserves, which makes it an attractive market. It is a market with many needs, but it is dependent on external funding and faces a variety of other challenges.  “We recognise that it will take time to build up our business here. The after-effects of the long boycott can still be felt, and it will take time for business to return to normal. However, we have received confirmation that Multiconsult is welcome, and we have established a small foothold in the market. Our visit provided certain leads for us to follow up, so we are gearing up for the possibility of being awarded projects in Iran,” concludes Horn.