“All oil industry contracts are under revision. Given the type of contracts in oil-rich countries, and the country’s regulations and facilities, the best contracts need to be regulated for the petroleum industry,” Ali Majedi, the new deputy minister for commercial and international affairs, told Shana.

“Iran’s petroleum industry does not follow any specific country or company in drafting its contracts. It will take into account all options for the development of oil and gas fields in order to draw up the best contracts,” he said.

Majedi added that upon an instruction by Petroleum Minister Bijan Namdar Zanganeh, a committee has been established to study the contracts in order to make them more attractive for the companies willing to develop hydrocarbon fields in Iran.

He, however, noted that the revision of contracts will have to take into consideration Iran’s national interests.

Majedi said the risk and rate of return are two factors which need to be considered in long-term contracts.

The official stressed the need for the enhancement of oil production capacity in the country, saying: “In order to reduce the oil share in the budget, alternative sources have to be created.”

“To that effect, we envisage development projects,” said Majedi.