6 May 2015 - 12:34
  • News ID: 240073
Iran Expects No Fast Sanctions Relief Impact

TEHRAN May 06(Shana)--Iran is unlikely to see any positive outcome of a potential nuclear deal with six world powers on its oil industry this calendar year, a senior Iranian official said.

“Most probably, the impact of removal of sanctions would not be felt in the year 1394 (the current calendar year which ends in March 2016),” Rokneddin Javadi, managing-director of National Iranian Oil Company (NIOC), said.

“NIOC has started a year with crude oil and gas condensate revenues having been cut by half...Therefore, we are facing hardships,” he added.

Javadi said Iran cannot make definite plans for post-sanctions period, adding: “We have to see when the sanctions are to be lifted.”

The official said China would remain a major partner for Iran even after the sanctions are lifted.

“This country has a big market for us and is a strategic partner whose 700,000-800,000 b/d demand is important,” Javadi said.

He said Iran has been delaying a conference to introduce new oil projects due to lack of an agreement on the nuclear issue.

A petroleum ministry committee has been modifying the terms of oil contracts in order to sweeten them for foreign companies. The new model, known as Iran Petroleum Contract (IPC), is replacing buyback deals.

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.

Iran hopes for the lifting of the sanctions in mid-summer to allow the conference to be held in London in September.

News ID 240073

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