Political relations between Iran and Saudi Arabia took a step forward in the 13th government. These two neighboring countries, which are among the largest holders of oil resources in the world, have resumed their diplomatic relations after an interruption of several years.
This question restarted the oil negotiations between the two countries, and there was even talk of the participation of the two countries for the development of common fields.
Regarding "Mohsen Khojstemehr", the CEO of the National Iranian Oil Company, said that there is currently no joint oil field awarded between Iran and Saudi Arabia, on the other hand, due of the re-establishment of relations between the two countries, preparations for work were launched for bilateral cooperation.
He said that for all common fields between Iran and Saudi Arabia, the necessary plans and approvals have been received to increase production and maintain production capacity.
This comment reinforced the possibility of oil cooperation between the two countries, which are of course among the most influential member countries of OPEC.
The importance of these cooperations becomes clearer when Iran and Saudi Arabia hold a total of 37% of the world's oil reserves and can play an important role in creating global energy security through joint investments and a coordinated trading in the oil market.
The importance of this cooperation is so great that even on the sidelines of the 8th international OPEC seminar in Vienna, the Iranian oil minister met the Saudi energy minister and both sides stressed the need to develop cooperation for the stability of the oil market.
Oil Minister Javad Oji and Saudi Energy Minister Abdulaziz bin Salman discussed the current conditions of the world crude oil markets, the future of the oil market, current and necessary decisions for the future and the outlook crude oil prices.
The two sides also discussed bilateral issues between Iran and Saudi Arabia, including investment in the oil and gas industry and exploring the possibility of joint investment.
Issues such as the trade in hydrocarbons and the development of common deposits were also among the other axes of negotiation between the two parties on the sidelines of the 8th international seminar of OPEC.
Iran and Saudi Arabia are two influential countries in the decisions of OPEC and OPEC and non-OPEC alliance (OPEC Plus), therefore the Minister of Petroleum of Iran and the Minister of Energy of Saudi Arabia at this meeting discussed decisions related to OPEC and OPEC Plus and issues related to the future of investments in the energy sector.
Previously, alongside the agreement between Iran and Saudi Arabia to resume diplomatic relations as two Middle Eastern powers, it was considered important in the economic, energy and political spheres of Western Asia, especially in the Persian Gulf region.
Although political relations between the two countries have resumed with this agreement, this agreement has important economic effects and will bring openings in the field of exchange.
On the other hand, this agreement has made the prospects of political relations between the two countries and the countries of the region promising and will undoubtedly be the basis for further international and diplomatic cooperation. Because the improvement and strengthening of multilateral cooperation will lay the foundations for changes and strategic openings in sectors such as the economy and energy.
This despite the fact that until now the economic relations of the two countries in the field of energy were limited to OPEC decisions, and since in OPEC economic interests are preferable to political positions, these cooperations were obvious.
Today, Iran and Saudi Arabia have taken a step forward to develop their energy relations; Because approaching Saudi Arabia as the largest oil producer among Arab countries, it may give the impression that Iran will have such an agreement with other countries aligned with this country, such as Kuwait and the United Arab Emirates .
On the other hand, although Saudi Arabia is one of the top countries in the world in terms of oil production; However, along with other Persian Gulf countries, such as the United Arab Emirates, it faces gas supply limitations, and Iran can use this situation to develop its gas export markets and become the hub of the region.
Another benefit of cooperation between Iran and Saudi Arabia may be the acceleration of Tehran's cooperation with other countries. For example, in the discussion on the export of gas to Pakistan, one of the main obstacles to this project was the interference of Saudi Arabia, which will continue with the agreement between the two countries.
In many cases, just to stop Iran's influence in the countries of the region, Saudi Arabia used to create trouble and make financial and investment proposals to other countries in the region, for example, the proposal to export electricity to Iraq and to finance the construction of 700 km of pipeline. Topi was one such suggestion.
The next benefit of the agreement between the two countries is to create a favorable prospect for a peaceful and cooperative solution to the energy challenges in the Middle East region, including the Crescent Agreement with the United Arab Emirates; Because if the political tension between Iran and Saudi Arabia decreases, we can seek to create convergent regional networks in the Middle East.
Also, with the proximity of the positions of the two countries, we can see their greater cooperation within the Organization of the Petroleum Exporting Countries (OPEC). Over time, the member countries of this organization have come to the conclusion that if they want to keep their interests, they have to give up part of their interests 100% in order to reach a consensus.
It should be mentioned that the Memorandum of Understanding between the Islamic Republic of Iran and Saudi Arabia on March 12, 2022 in Beijing is the most important geopolitical event in the Middle East in recent years and the most influential event for the world oil market and OPEC. in 2023.
As far as the Organization of the Petroleum Exporting Countries (OPEC) and the world oil and gas market are concerned, power in world markets comes from the wellhead, so without barrels ready to be exported and only according to capacity and potential access, the possibility It is not available on the market, but the world oil market immediately reacted to this agreement.
The agreement between Iran and Saudi Arabia is in favor of exporters and importers of crude oil, and stability in this region can bring stability to the world oil market.
This agreement reinforces the security of energy investments in the region. In other words, stability in the Middle East region can create stability in the global oil market.
On the other hand, the agreement between Iran and Saudi Arabia, as two influential members of OPEC, can naturally influence the decision-making process and the stability of this organization.
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