19 May 2015 - 09:47
  • News ID: 241194
Iran to Tender 17 Blocks

TEHRAN May 19(Shana)--Iran plans to put a tender for 17 newly explored oil and gas blocks as the country prepares to unveil a new type of oil contracts, a top official said.

“Of 40 exploration blocks..., 17 blocks are ready [to be introduced] when the new oil contracts are to be unveiled in London,” Hormuz Qalavand, director of exploration at National Iranian Oil Company (NIOC, said.

“Alongside these blocks, all development and exploration blocks are to be introduced simultaneous with the introduction of Iran Petroleum Contract (IPC),” he added.

Qalavand said NIOC has been in talks with top European companies in order to attract them back into Iran.  

A petroleum ministry committee has been modifying the terms of oil contracts in order to sweeten them for foreign companies. The new model, 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, 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 241194

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