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Iran's Even More Tempting for Big Oil After Price Crop

  • Development costs in Iran are just a fraction of U.S. Canada
  • Oil majors in talks to enter country when sanctions lifted
iranian oil field
Photographer: Vahid Salemi/AP Images
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The world is awash in crude, but big oil companies are lining up to develop new fields in Iran even as they slash spending and abandon exploration elsewhere. One thing explains this paradox: cost.

The Middle Eastern country is one of the cheapest places in the world to tap new oil fields and pump from existing wells. The slump in crude prices makes Iran even more attractive to investors, assuming its nuclear deal with world powers leads to an easing of sanctions, said the International Energy Agency.