Iran’s Oil and Gas Business Perused by GE

Wednesday, Feb 17, 2016

As per a company spokeperson of General Electric, the firm has its sights set on business prospects in Iran due to which the Chief Executive of GE’s oil and gas division sojourned in the Middle-Eastern country recently.

CEO of GE Oil & Gas, Lorenzo Simonelli’s trip was timed in such a way that it fell completely in line with Iran’s plans of advancing its crude oil exports and bouncing back from the loss of its oil market share which occurred due to international sanctions imposed over its nuclear program.

GE spokesperson stated, "In line with the easing of sanctions, we have begun looking at potential business opportunities in Iran, while fully complying with the rules laid out by the US government. Simonelli's visit is part of this effort.”

The energy prices have propelled towards the bottom in the recent times and this has had an adverse effect on the American company. So much so that GE had to stretch its 2016 budget for restructuring twice as much. The firm is hopeful that Iran could help in doing some damage-control.

Iran could help GE lessen the effects of the fall in energy prices as a result of which the company doubled its 2016 budget for restructuring.

The company spokesperson also confers, “We expect oil and gas revenue to fall a further 10-15 per cent in 2016 because of weak oil prices. This is an impending threat to our company.”

Simonelli’s trip to Iran was earlier reported by The Wall Street Journal.


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