5 July 2015 - 16:10
  • News ID: 243864

Iran Ready to Present IPC

Iran Ready to Present IPC

TEHRAN July 05(Shana)--A senior official responsible for Iran's oil contracts for developing petroleum projects says Tehran is prepared to present the new contract model.

The head of Ministry of Petroleum’s Oil Contracts Revision Committee, Mehdi Hosseini, said petroleum minister Bijan Zangeneh will introduce the new contract model, Iran Petroleum Contract (IPC), during a cabinet session.  

He said very intensive talks are under way between Iran's petroleum ministry and major European and Asian oil giants for developing Iran's oil projects once the sanctions are removed after a long-sought nuclear deal is clinched. 

He said many foreign companies are eager to return to Iran given its vast potentialities in the oil and gas sector. 

The presidential office is examining the draft of the new type of oil contracts Iran is preparing to tempt foreign companies back, he said recently.

“This [type] of contract will be submitted to the government for final approval,” Hosseini said.

He said that the office of vice-president for legal affairs is currently reviewing different aspects of Iran Petroleum Contract (IPC).

Tens of upstream oil projects are envisaged to be introduced under this new framework.

IPC is expected to replace “buy-back” contracts which, he added, 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 will set up joint ventures for crude oil and gas production with international companies which will be paid with a share of the output.

Foreign companies are expected to rush back to Iran as hopes soar for relief in sanctions imposed on the Islamic Republic over its nuclear program.  
News ID 243864

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