MJ Ravanbod

Iran and sanctions

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What do you think about Iran's Oil and Gas industries after returning of sanctions?

What about invest/finance in Iran's oil and Gas? Is it wisely?

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Just watch what happened with the China tariffs ... it's all still a negotiation

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Iran certainly represents a power in the oil and gas sector and also in the nuclear field and if the EU still lacks of a strategy vis a vis this situation of the United States rejecting the JCPOA with Iran definitely its because it needs iranian oil flowing into its market, and as Libya, Algeria and other northern african oil producing and exporting countries into europe are facing substantial instability and as Norway and the UK are in no better position vis a vis Russia to keep an important market share in the european market of energy, Iran certainly represented another alternative for Europe and also in Central Asia and China. Time will tell about this issue. 

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China is still happy to take Iranian crude, so I'm not sure sanctions will have the same teeth as they did in the previous round. 

 As for investments in Iran's oil and gas industry, I'd say there are lots of oil and gas investments to be made--Iran is but one, and a risk that I wouldn't be inclined to make. Not that I necessarily see doom and gloom here, but because... why? 

It's like a table with four pieces of bread, one that has mold. I'm told to choose one. Will it kill me to eat the moldy bread? Unlikely. But if the other three don't have mold, I would choose one of those. I HAVE ABSOLUTELY NO IDEA WHY I CHOSE THAT WEIRD ANALOGY, BUT I'M STICKING WITH IT. (Iran would be the moldy bread here)

If I were starving, on the other hand, and all the bread had mold, I'd say, "down the hatch!" mold and all, and hope for the best.

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MJ - I agree with TraderTate.  It's too early to know what could happen with the local oil and gas industries in Iran.  I guess it depends on your investment goals, timeline and the exact investment you have in mind.  Are you talking about stocks, bonds or what type of investment and what is your timeline?

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10 hours ago, Rodent said:

It's like a table with four pieces of bread, one that has mold. I'm told to choose one. Will it kill me to eat the moldy bread? Unlikely. But if the other three don't have mold, I would choose one of those. I HAVE ABSOLUTELY NO IDEA WHY I CHOSE THAT WEIRD ANALOGY, BUT I'M STICKING WITH IT. (Iran would be the moldy bread here)

If I were starving, on the other hand, and all the bread had mold, I'd say, "down the hatch!" mold and all, and hope for the best.

Actually, it's an amusing but pretty accurate analogy, IMO. 

Currently the risk factor for companies doing O&G biz in Iran is already pretty high, and it's about to get significantly higher.

Further to the analogy, Venezuela would be the bread with mouse droppings on it.  I would prefer bread without mold or mouse droppings, to be honest.

(Apologies to Jose Chalhoub, this isn't personal, Venezuela has become one of the countries on my "do not enter" list - it's currently not safe there.)

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7 hours ago, Horton47 said:

MJ - I agree with TraderTate.  It's too early to know what could happen with the local oil and gas industries in Iran.  I guess it depends on your investment goals, timeline and the exact investment you have in mind.  Are you talking about stocks, bonds or what type of investment and what is your timeline?

-           A foreign company wants to finance/invest in Drilling, Petrochemical plants and procurement in Iran.

-          Project’s Time Schedule: the production period of the Project is 3 years minimum and the finance package shall also include min. 6 months as breathing time after the Project’s Start-Up.

-          Return of invested monies: 7 years after the above mentioned 3.5 years

. 

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MJ- Good question.  Because there is some risk involved in the proposed transaction in might make sense to hedge.  Here is the plan of action:

Continue your planning and engineering.  At the same time buy "American oil stock SSOF" and "Canadian gold stock NBRI - North Bay Resources".  Here are the monthly and related total return on investment yields for SSOF and NBRI:

SSOF

Dec. 2017    +37.5%
Jan. 2018    +92.7%
Feb. 2018    +41.5%
Mar. 2018    +13.3%
Apr. 2018     +41.2%
Last 3 days    +23.1%
------------------------------

NBRI

Last 30 days    +110.0%
Last 7 days    +5.0%

Next, wait until SSOF and NBRI double and then treble.  Thereafter, sell 1/3 to 2/3 of your original investment and use those funds to invest in the original proposal.  If you follow this plan the risk will be minimized and the project as proposed does not need to be highly profitable because your other profits will outweigh, in fact your original proposal could be entirely written off and it would not hurt you financially if this plan of action is successful.  Let me know of any questions.

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