By: Mir M.Hosseini
On May, 1, 1951 Shah reluctantly signed the law revoking Anglo-Iranian Concession and establishing the National Iranian Oil Company. The law had been approved by Majlis on Apr, 28, 1951 and Dr. Mosaddegh was elected as Prime Minister.
After assassination of Prime Minister Razmara by Fada'iyan-e Islam on March, 7, 1951, Majlis rejected Shah's choice for successor and three weeks later voted for Hossein Ala as new PM.
The AIOC withdrew its management from Iran, and organized an effective worldwide embargo of Iranian oil. The British government, which owned the AIOC, contested the nationalization at the International Court of Justice at The Hague, but its complaint was dismissed.
By spring of 1953, incoming US President Dwight D. Eisenhower authorized the Central Intelligence Agency (CIA), to organize a coup against the Mosaddegh government, known as the 1953 Iranian coup d'état. In August 1953, the coup brought pro-Western general Fazlollah Zahedi as the new PM, along with the return of the Shah Mohammad Reza Pahlavi from his brief exile in Italy to Iran. The anti-Mosaddegh plan was orchestrated under the code-name Operation TP-Ajax by CIA, and Operation Boot by SIS (MI6).
In 1954, the AIOC became the British Petroleum Company. The return of the shah did not mean that British Petroleum would be able to monopolize Iranian oil as before as Allied Pirates each wanted a share from Iran's wealth. Under pressure from United States, British Petroleum reluctantly accepted membership in a consortium of companies, founded in October 1954, to bring back Iranian oil to the international market. It was incorporated in London as a holding company called 'Iranian Oil Participants Ltd' (IOP). The founding members of IOP included British Petroleum (40%), Gulf (later Chevron, 8%), Royal Dutch Shell (14%), and Compagnie Française des Pétroles (later Total S.A., 6%). The four Aramco partners - Standard Oil of California (SoCal, later Chevron) - Standard Oil of New Jersey (later Exxon, then ExxonMobil) - Standard Oil Co. of New York (later Mobil, then ExxonMobil) - Texaco (later Chevron) - each held a 8% stake in the holding company.
IOP continued to operate until the Islamic Revolution in 1979 when he Consortium Agreement of 1954 and all regulations pertaining to it were annulled. The taking of power by Iranians led to the withdrawal of foreign employees from Iran's oil industry; domestic employees took full control of its affairs and despite new sanctions, embargo and several covert operations and hostile actions, Iranian people managed to stand against the colonial states; especially US and UK.
Since 1995, National Iranian Oil Company (NIOC) has made significant oil and gas discoveries, standing for some 84-billion-barrel (1.34×1010 m3) of oil in place and at least 5,000 km3 of gas in place.
Iran ranks second in the world on Total hydrocarbon reserves (Combined reserves of Oil & Gas). Total hydrocarbon reserves of Iran comprising of both oil and natural gas measured in barrel of oil equivalent (boe) stands at 301.7 billion just after Saudi Arabia's 302.5 billion boe and ahead of Russia's 198.3 billion boe; Alternatively Iranian government puts the total reserve at 324 billion boe; Iran is the only country with large reserves of both gas and oil; Iran is also the only country with large hydrocarbon reserves which has the potential to massively increase its production due to its current low production levels.