Big Oil again covets Iran's reserves after decades of conflict

London

OUTSIDE the boardroom of BP plc's headquarters on London's swanky St James's Square, a display case houses the geological data from Masjid-i-Solaiman, Iran's first oil well.

The discovery of crude in 1908 laid the foundations for the company that would become British Petroleum and opened one of the richest opportunities that western oil companies have ever enjoyed in the turbulent Middle East. Since then, the industry's history in Iran is intertwined with CIA-backed coups, colonial exploitation and the anti-western resentment surrounding the 1979 Islamic Revolution.

Now, as Iran and the US enter 11th hour negotiations to reach a nuclear deal and ease sanctions, the Middle Eastern country is emerging again as a potential prize for western oil companies such as BP, Royal Dutch Shell plc, Eni SpA and Total SA. The Chinese can also be expected to enter the race, while US companies, more burdened by sanctions and legacy, will be further down the pack. "You look at the history of the oil companies, and t…