23 April 2014 - 14:38
  • News ID: 215690
Iran New Oil Contracts Finalized

TEHRAN April 23 (Shana)--Iran has put final touches on its new model of oil contracts, designed to tempt back foreign companies, the head of Petroleum Ministry-appointed oil contracts revision committee said.

“The model of these contracts has been finalized in terms of expertise,” Mehdi Hosseini said.

He said the Iran Petroleum Contract (IPC) will be presented to a conference in London in November.

“In order for international companies to be able to invest in Iran projects, the sanctions must be lifted so that they would be able to easily invest in Iran’s oil projects,” said Hosseini.

He said that major international companies will definitely come and invest in Iran when sanctions have been lifted.

The IPC is replacing “buy-back” contracts which are no longer attractive to foreign companies.

Under a buyback deal, the host government agrees to pay the contractor an agreed price for all volumes of hydrocarbons the contractor produces.

But under the IPC, National Iranian Oil Company (NIOC) will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output. 
News ID 215690

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