Business
Which firms will clean up after the Iran war is finally over?: Maguire
Which firms will clean up after the Iran war is finally over?: Maguire
About this update from Saipem S.p.a.
By Gavin Maguire When the missiles and drones eventually stop flying in the against Iran, a new contest is likely to get underway: the scramble for contracts to rebuild damaged oil and gas infrastructure and restore shipping lanes - and influence - across the Middle East.The destruction is not confined to Iran. At least 40 energy assets across nine countries in the Middle East have been "severely or very severely" damaged, with oil and gas fields, refineries and pipelines all expected to take some time to repair, the International Energy Agency head Fatih Birol warned on Monday. He described the crisis as worse than the two oil shocks of the 1970s, as well as the impact of the Russia-Ukraine war on gas, put together. From engineering specialists lining up to rebuild smashed pipelines to logistics firms able to repair bombed-out ports and terminals, a select group of companies is poised to turn the end of the conflict into the start of a lucrative boom.Here's a look at which sectors and companies are potential candidates to compete for the scores of energy and port reconstruction projects likely to emerge across the Middle East once the war finally ends and the cleanup campaign begins.ENGINEERING CONGLOMERATESMultinational engineering giants will be among the first companies called in to Iran once the fighting stops to help assess the damage and draw up reconstruction plans. Firms with experience in repairing and constructing oil rigs, refineries, pipelines and natural gas liquefaction plants will play a vital role in Iran's recovery and in restoring revenue flows to the country.Political affiliations will likely play a role in picking the ultimate winners, with both the Iranian and U.S. governments expected to have strong views on how contracts are divvied up.Even so, after several weeks of steady bombing there should be plenty of work to go around.Major U.S. firms with hefty oil and gas engineering and service arms include SLB NYSE:SLB (formerly Schlumberger), Halliburton NYSE:HAL, Baker Hughes NASDAQ:BKR and Weatherford NASDAQ:WFRD, alongside the privately held Bechtel Corp.On the Iranian side, the Khatam-al Anbiya Construction firm - controlled by the Islamic Revolutionary Guard Corps (IRGC) - and the Mapna Group, the country's largest contractor in oil, gas and power, are the obvious domestic candidates.International firms including Italy's Saipem MIL...